Philanthropy is more than a funding source — it’s a lifeline of hope, vision and transformation for hospitals and the communities they serve. In this first episode of a four-part series with the Association for Healthcare Philanthropy (AHP), Alice Ayres, president and CEO of the AHP, discusses how philanthropy is no longer just an add-on, but a strategic driver for hospitals and health systems. Alice also shares how integrating philanthropy into the C-suite unlocks new funding pathways, strengthens community trust, and fuels innovation in patient care and workforce support.
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00:00:00:27 - 00:00:28:01
Tom Haederle
Welcome to Advancing health. The rapidly changing health care environment makes long term strategic planning difficult, and as a result, more hospitals than ever are weaving philanthropic support into their plans and goals. The AHA is pleased to bring you this podcast series on the important strategic role philanthropic initiatives play in helping to deliver the care that patients and communities depend on.
00:00:28:04 - 00:00:52:25
Michelle Hood, FACHE
I'm Michelle Hood, I'm the executive vice president and chief operating officer for the American Hospital Association. Welcome to the first of a four-part Advancing Health podcast series to discuss the important strategic role philanthropic initiatives play in achieving a hospital or health system's vision and mission to provide patient care, support their local communities, and increase employee satisfaction and engagement.
00:00:52:27 - 00:01:21:20
Michelle Hood, FACHE
In this series, AHA is partnering with the Association of Healthcare Philanthropy. And joining me today is Alice Ayres, president and chief executive officer with the Association of Healthcare Philanthropy. The remaining episodes will focus on discussions on specific health philanthropic themes with the chief philanthropy officers and key C-suite leaders at Sanford Health, CommonSpirit and Inova. So let's get to it.
00:01:21:22 - 00:01:22:28
Michelle Hood, FACHE
How are you today, Alice?
00:01:23:05 - 00:01:32:27
Alice Ayres
I'm great. Michelle, thank you so much for having me. And I'm so excited about this series. I really think we're all going to learn just a ton from these great leaders, and I'm super excited to have this conversation with you.
00:01:33:03 - 00:02:01:27
Michelle Hood, FACHE
Yeah, it's a great topic. It's a really important part of, leading our hospitals and health systems today. So we're really pleased to be partnering with you. So let's start with the question around the fact that our hospitals and health systems are really shifting their strategic priorities seems like almost daily, weekly these days, very difficult to write a long term strategic plan and stay with it because the environment is changing
00:02:01:27 - 00:02:34:07
Michelle Hood, FACHE
so much. And the rapid advancement of clinical advances in science is contributing, but also the business challenges that our hospitals and health systems are facing. So I know that the field is looking at very different avenues to support their priorities. And one of these shifts is really incorporating philanthropy into the hospital's strategic plan. Tell us how you think about it from incorporating philanthropy approach into strategy.
00:02:34:09 - 00:02:52:25
Alice Ayres
Yeah. Thank you. This is such an important question because you're right. What's going on at the moment in terms of financials as well as just strategic priorities, is it feels like it's sort of a constantly changing situation. And you know, philanthropy has always been an important part of the revenue stream that comes into hospitals and health systems.
00:02:52:25 - 00:03:11:16
Alice Ayres
But as we sort of look at this moving forward, we feel like it's even more important than it ever has been before. And that's for a couple of reasons. The first is that years past, we've had a question as to whether or not it was something that was measurable and countable, and whether we could count on it. We could set it as part of our strategic plan.
00:03:11:19 - 00:03:30:02
Alice Ayres
But the reality is these days our chief philanthropy officers and their teams are following really careful quantitative numbers in order to understand exactly how much money is coming in and how it's all going to play out. And so we can count on these revenue streams. We can sort of begin to bake them into the financial side of things.
00:03:30:04 - 00:03:56:07
Alice Ayres
But I think your question is even more important than that, which is how you get to the strategy side. The reason that it's so important to incorporate the act of and the group of people who are bringing in the money that says, you know, sort of the philanthropic team, the foundation team, is because when you set strategy and you think about strategic priorities, you want to make sure that the community voice is brought into those strategic priorities.
00:03:56:13 - 00:04:17:13
Alice Ayres
And who better than the foundation who are constantly out talking to the community, working with their own volunteers, working with lots of other people in the community. And who better to sit at that table and say, well, gosh, you know, we're talking about funding that priority by doing X. But I actually know that there are people in the community that would get behind an idea like that and would be really excited about it.
00:04:17:21 - 00:04:46:12
Alice Ayres
So if we have enough time and we have the ability to talk to those donors and work with them, then maybe we can actually fund this not through the operational budget, but instead through philanthropic support. So there are lots of reasons to do it. I had a really wonderful conversation once with the former CEO at Intermountain. And he said, I always want the chief philanthropy officer at my executive leadership table because they're the ones that have that voice of the community.
00:04:46:12 - 00:04:55:00
Alice Ayres
They're the ones that can say, you know what? I'm hearing this isn't important, or I'm hearing this is critical and it's not in our strategic plan, and we need to think about that, too.
00:04:55:03 - 00:05:17:05
Michelle Hood, FACHE
I think that to make it work for philanthropy really to be woven into strategy and operations, there has to be that presence of the leader of the foundation with the rest of the C-suite, right? And that has not always been the case. It's really been kind of a separate thing and even to the point where the foundation typically has its own board.
00:05:17:05 - 00:05:25:01
Michelle Hood, FACHE
So integrating the foundation board with the hospital or health system board and having that cross communication and looking for opportunity.
00:05:25:04 - 00:05:47:06
Alice Ayres
Yeah, I would say about half of the hospital and health systems across the country have a separate foundation rather than having the fundraising team as part of sort of the department of the hospital. But even those that have that separate foundation often are sort of integrated into the C-suite on purpose. And I think it's a goal that we all ought to have.
00:05:47:09 - 00:06:28:14
Alice Ayres
Because the other thing that we found and we're writing a piece for one of your publications on the subject that's coming up in the next month, I think, or two. One of the things that we've found is that when the leadership both volunteer and employed of the hospital - so the C-suite, the fiduciary board - those people who are seen in the community as the leaders of the organization, when they give at 100%, it actually increases the overall likelihood of the hospital or health system being a high performer in our philanthropic data, because it's a message to the community that the people who know the organization best are putting their money where their mouth is.
00:06:28:14 - 00:06:48:21
Alice Ayres
They are supporting the organization in that way. So I think, you know, it's partly that, it's partly just building a culture of gratitude. And you can't do that without the leadership really being a part of it and understanding, you know, why it is that we encourage gratitude and why it is that we encourage patients to be able to share how they feel and sometimes share their financial support as well.
00:06:48:27 - 00:06:57:13
Alice Ayres
But it has to start with there being a deep partnership between the chief philanthropy officer and the other C-suite members. Without that, the rest of it doesn't happen.
00:06:57:16 - 00:07:12:22
Michelle Hood, FACHE
Talking about from the standpoint of starting with that relationship, what would you tell a hospital or a health system who really is just getting started with integration of philanthropy with strategy and operations? Where do they start?
00:07:12:25 - 00:07:32:16
Alice Ayres
I think they start with just getting to know each other and figuring out what it is that they can do for the philanthropy team, and vice versa. When I talk to chief philanthropy officers who are just beginning to step into this kind of a role and be brought into these kinds of conversations. One of the things I say is you've got to figure out what's in it for them.
00:07:32:16 - 00:07:51:24
Alice Ayres
So you have to begin to share with them how you can help them, and how the fact that you're sitting at that table can change the ways in which they do their jobs. And so it's important, I think, for there to be an understanding across these different functions as to what the up at night issues are, what the things are that people are worrying about.
00:07:51:27 - 00:08:15:26
Alice Ayres
And one of the things that I, I mostly see with our membership is they're super creative. And so if they can understand what the issues are in any given situation, frequently they're able to sort of think through whether there are creative solutions that involve donors or involve the community. So giving them the space and the information to be able to be that kind of creative is really important.
00:08:15:28 - 00:08:37:09
Alice Ayres
And I think just, you know, giving the space for the philanthropy team to talk about what's going on in the community and what's going on with their donors and the kinds of ways that that the other leaders can support them is also really important. During Covid, we saw a lot of videos and webinars where like the chief philanthropy officer or the chief medical officer would do a briefing for donors.
00:08:37:09 - 00:08:57:12
Alice Ayres
And I think those kinds of things are super helpful because donors feel like they're a part of what's happening. So it doesn't have to be that, you know, the chief medical officer sits down with a donor during the middle of a conversation around an ask. It alleviates a lot of fears when they understand that that the chief philanthropy officer is unlikely to ask them to help with the ask.
00:08:57:15 - 00:09:01:23
Alice Ayres
They just want the help of getting donors to be closer to the organization.
00:09:01:25 - 00:09:11:12
Michelle Hood, FACHE
Yeah, that was my experience as well. The C-suite is glad to ride along if you will, but they typically do not want to do the ask.
00:09:11:20 - 00:09:38:12
Alice Ayres
Even the foundation boards sometimes are uncomfortable with it. And when I'm speaking to foundation boards, one of the first things I say is listen, the philanthropy team, the foundation team are the experts in this work. And so they're going to do the ask. They don't want you to do the ask. They just want your help opening doors and sharing information and sort of bringing the donor into what's going on in the organization, and then let the expert do the ask because they know what they're doing.
00:09:38:14 - 00:09:50:13
Michelle Hood, FACHE
Right, and capitalize on those relationships that the leaders have with the various members of the community and community organizations and looking for nontraditional sources of philanthropic giving.
00:09:50:13 - 00:10:07:04
Alice Ayres
You did this. I know you were a big supporter of your chief philanthropy officer when you were at the hospital. Did you find that people were nervous or were they excited to be a part of these things or somewhere in between? You know, from your perspective, what helps get a C-suite excited about this?
00:10:07:06 - 00:10:28:17
Michelle Hood, FACHE
Yeah, I think it depends upon the individual. I had a chief medical officer who loved this stuff, and so we tapped him quite often. He had those patient relationships and so forth. So that was an added plus as well. So, I think it just depends on where people's comfort levels are. But as you said, let the experts do the work that they do.
00:10:28:24 - 00:11:06:04
Michelle Hood, FACHE
If you just say, we just need your presence, even just your presence can kind of go a long way. Health care, we've been talking about transformation for decades, maybe more so in the last decade with that little hiccup of Covid in the middle of it. But, you know, transformation is incremental, it feels like sometimes. But I feel like philanthropy, because of the creativity associated with the profession, really has the ability to contribute to transformation, bringing forth, you know, bold ideas and opening unusual doors for participation.
00:11:06:04 - 00:11:15:00
Michelle Hood, FACHE
We all want to partner with our communities in different ways. Talk to me a little bit about how you see philanthropy supporting transformation.
00:11:15:02 - 00:11:40:29
Alice Ayres
Yeah. It's interesting. I think there are a couple of different answers to that question. The first is that I think during the pandemic, we saw donors changing their perspectives on the kinds of things they'd support. And I think what that did was open up the foundation team, the philanthropy team, to understand that they could talk to donors about things that maybe they hadn't ever imagined they could before.
00:11:41:02 - 00:12:06:03
Alice Ayres
So examples of that were, you know, there were donors coming out of the woodwork wanting to give to employee assistance funds or to behavioral health, which is something that donors were more reticent to give to before the pandemic and now are very much interested in. Donors - you know, there was enough of a stigma so that donors didn't want to put their names on certain buildings or, you know, in on service lines that had to do with behavioral health.
00:12:06:05 - 00:12:26:02
Alice Ayres
Not true anymore. But it also allowed our teams to think about mobile units and access and equity in ways that perhaps we hadn't had quite as much of a forcing function before, because we knew that we couldn't get people to the hospital, we knew that we needed to meet them where they were, and donors were there for that, too.
00:12:26:03 - 00:12:49:08
Alice Ayres
They were very eager to be supportive. And so I think there was sort of this moment where we moved. We'll always have grateful patients as a big part of our donor base, but we also sort of moved into a space where suddenly we were able to think more about community partnerships and about donors who cared about the community in ways that maybe they had not ever associated with hospital work before.
00:12:49:08 - 00:12:53:06
Alice Ayres
But they were beginning to understand that the hospital was a big part of that.
00:12:53:09 - 00:13:11:02
Michelle Hood, FACHE
That's a great wrap for us, I think today, and thinking about the future and when, you know, certain doors close, other doors open, and there we go. So thank you so much for being with us today and being ready to kick off this important series. We look forward to working with you in the future.
00:13:11:04 - 00:13:17:04
Alice Ayres
Thank you. Me too. I appreciate all that you guys do. You have a lot on your plates and it's great that you're highlighting this.
00:13:17:06 - 00:13:25:18
Tom Haederle
Thanks for listening to Advancing Health. Please subscribe and rate us five stars on Apple Podcasts, Spotify, or wherever you get your podcasts.