Health Fund-raising Organizations

Health Fund-raising Organizations

Brief Excerpt from Industry Overview Chapter:

The US health fund-raising industry consists of about 2,800 organizations with combined annual revenue of about $16 billion. Major organizations include the American Cancer Society, American Heart Association, Cystic Fibrosis Foundation, March of Dimes, and Muscular Dystrophy Association. The industry is concentrated: the 50 largest organizations take in about two-thirds of overall revenue.

The industry includes organizations that raise money for health-related research, such as disease prevention, health education, and patient services. Health care providers are covered in separate industry profiles.

COMPETITIVE LANDSCAPE

The revenue of these organizations depends on consumer income and corporate profits. The long-term viability of individual organizations depends on strong marketing and public perceptions of usefulness. Large organizations have advantages in name recognition. Small organizations can compete successfully through superior marketing or by having a wealthy sponsor.

PRODUCTS, OPERATIONS & TECHNOLOGY

Program services usually fall into three major categories: funding medical research, public education, and direct services such as testing programs, support groups, patient care, rehabilitation and training, etc. Research funding is usually accomplished through grants to individuals or institutions that apply for funds. Public education involves media advertising, publications, school programs, and awareness events often in conjunction with fund-raising activities, and legislative lobbying activities. Lobbying usually takes the form of advocating increased government funding for research and support activities, and can be very effective for organizations with large numbers of members.

For large organizations, program services take about 75 percent of revenue. Support services include management...