Hospital & Healthcare Fundraising: The Basics + 12 Tips

For nearly a century, City of Hope has been defined by a single pursuit: transforming scientific ideas into life-saving, research-backed discoveries. To expand community connection and build on a strong foundation of annual giving, City of Hope launched the Walk for Hope, a multi‑city fundraising initiative that has evolved alongside donor expectations and institutional priorities. Originally launched to support women’s cancer research, the walk has expanded into a broader platform funding cancer research, treatment, and education across disease areas.

Walk for Hope also reflects a broader reality facing healthcare institutions today: no single event, channel, or tactic is enough. Sustainable healthcare fundraising requires an integrated approach—one that connects storytelling, donor experience, direct response, stewardship, and data‑driven decision‑making across the entire supporter journey.

Whether you’re optimizing existing foundation efforts or planning for growth, we’ve put together the essential strategies you need for a successful healthcare fundraising program:

• Healthcare fundraising FAQ
• Effective healthcare fundraising strategies
• Essential tools and services for healthcare fundraising

This guide breaks down the fundamentals of hospital and healthcare fundraising, outlining common challenges, core program components, and proven strategies to build sustainable philanthropic revenue. Whether you’re refining an existing development program or laying the groundwork for growth, the following insights will help you strengthen donor relationships, diversify revenue streams, and fund your mission with confidence. 

To begin, we’ll dive into some common questions about healthcare fundraising.

Healthcare Fundraising FAQ

What is healthcare fundraising?

Healthcare fundraising involves building relationships and securing donations to support various aspects of healthcare, including patient care, research, technology upgrades, and facility improvements. The types of organizations that conduct fundraising include nonprofit hospitals, clinics, medical research and educational institutions, and healthcare foundations.

Why do healthcare institutions need to fundraise?

Healthcare institutions fundraise because, while patient payments and insurance cover a significant portion of their expenses, they often fall short of covering all costs. Without fundraising revenue, these organizations may lack the funds to enhance and expand patient care, address staffing shortages and burnout, pay for equipment upgrades, and provide financial assistance to patients.

Unlike many charities, healthcare institutions must raise funds within a highly regulated environment, navigating strict ethical standards, patient privacy requirements, and complex donor expectations. Many of these organizations also lack long‑standing relationships with supporters. Patients often feel deep personal gratitude toward individual clinicians rather than the institution itself, and interactions are brief or outpatient-based. This leaves limited opportunity to build lasting engagement.

Yet the opportunity is real. Communities care deeply about healthcare, and donors want to support organizations that improve lives, expand access, and drive medical breakthroughs. The challenge is not whether support exists—it’s how hospitals and healthcare foundations articulate a compelling case for support and connect meaningfully with donors across channels.

What does healthcare fundraising look like in practice?

Healthcare institutions have various revenue streams, such as payments for procedures/treatments, government and private grants, individual donations, major gifts, in-kind donations (e.g., equipment, pro bono services), and more.

Healthcare organizations need all of these various sources of funding, so they should engage in a variety of different fundraising activities:

• Standard annual fund campaigns targeting smaller, individual donors
• Fundraising events such as a road race or bike-a-thon
• Planned giving initiatives where donors designate gifts through their estate or via bequests or other deferred gifts
• Major gifts prospecting and the ongoing stewardship of those relationships
• Grateful patient programs involve developing relationships with patients and those close to them who have benefited positively from the organization’s providers and services.
• Capital and comprehensive campaigns to add a new wing or for another major project.

What are some unique fundraising challenges healthcare organizations face?

Healthcare institutions face different challenges than traditional nonprofits when it comes to raising funds. As mentioned, they conduct unique fundraising activities (e.g., Grateful Patient programs), but they often struggle to build long-term relationships with patients. Patients tend to form deeper relationships with their physician rather than the healthcare institution, and many are seen for outpatient services, not long-term care.

Some common healthcare fundraising challenges include:

• Lack of flexibility, as donations are often earmarked for specific purposes.
• Legal and ethical challenges involving the complexities of managing patient data privacy and maintaining ethical practices; addressing these challenges requires greater oversight.
• Ethical concerns as donors may come to expect preferential treatment after giving, leading to inequities. To combat this, establish clear policies for donors and your staff. These may include definitive “no preferential care” policies for donors, a strict code of ethics that explicitly prevents expedited services for patient donors, and separation between your donor stewardship and patient care teams. 
• Competition for donors’ attention is real, and the philanthropic landscape is crowded. It can be difficult to engage donors and inspire them to give.
• Tight budgets for institutions dealing with already slim operating margins. It may be difficult to allocate the proper budget and staffing toward fundraising.

How can organizations overcome healthcare fundraising challenges?

While healthcare fundraising challenges are significant, your organization can take steps and employ strategies to overcome them. Proactively navigate these roadblocks by:

• Promoting unrestricted giving. Educate donors on your organization’s critical need for flexible funding. Use strategies like storytelling or compelling graphics to illustrate how unrestricted gifts power your day-to-day operations and allow you to respond to urgent or unexpected events.
• Prioritizing HIPAA compliance and internal training. Invest in a secure, healthcare-specific CRM that will keep your data clean and safe. Conduct in-depth, regular staff training to ensure patient data is never compromised during wealth screenings or patient outreach.
• Creating transparent donor policies. Outline any benefits donors receive by donating (e.g., naming rights, event tickets) and firmly establish, in writing, that financial contributions do not equate to preferential medical treatment. Additionally, consider educating on how healthcare organizations allocate care (e.g., clinical triage, data-driven analytics).
• Partnering with fundraising experts. If internal budgets and staff time are tight, partnering with an external agency with fundraising expertise can help. These professionals will provide their strategic expertise as well as access to top-tier digital tools and automation at a fraction of the cost of hiring a large in-house team.

1. Create Smooth Supporter Experiences

There should be as little friction as possible involved in a donor’s giving experience. Too many steps or complicated instructions could cause them to abandon the process altogether.

Some things to consider when creating an uncomplicated donor experience:

• Accept a variety of payment methods, such as one-time or recurring donations, bequests or deferred giving, donor-advised funds, or even cryptocurrency
• Streamline the donation form and avoid asking unnecessary questions
• Ensure all fundraiser communications have clear calls to action linking to the donation form

2. Tell Compelling Stories

Storytelling is a cornerstone of fundraising that healthcare organizations can leverage effectively to reach donors and would-be supporters. An impact story uses anecdotes (e.g., a patient’s health journey) and data (e.g., program success metrics) to demonstrate the impact of programs and services, helping donors understand the organization’s impact.

What makes a compelling story? It’s one that creates an emotional connection with the reader, and it can inspire action or drive change. Showcase donors’ roles and their support in these stories, and make the benefits of giving tangible by highlighting impact metrics.

Additionally, keep your organization’s ethical and legal guidelines in mind, and consult a lawyer before publication to ensure informed consent and regulatory compliance.

3. Launch Targeted Direct Response Campaigns

Direct mail remains a foundational cornerstone for healthcare fundraising, but a modern direct response strategy should also include email and SMS to effectively connect with constituents. Taking an integrated, multichannel approach ensures your message reaches constituents on their preferred platforms, building a cohesive donor journey and increasing the likelihood of a response.

Explore these strategies for an effective direct response campaign:

• Determine channel roles. Pinpoint the most effective way to leverage each channel. For instance, use direct mail for high-impact, long-form storytelling, email for cost-effective stewardship and rapid updates, and SMS for high-urgency appeals or reminders.
• Implement cross-channel segmentation. Personalize outreach by using your data to ensure that messaging across channels all aligns with the donor’s specific experiences or interests. For example, reference the facility the donor visited or the medical cause they previously supported.
• Ensure donating is easy. Make the path to giving as short and simple as possible. Include QR codes on physical mailers to lead donors to your site, and ensure every text and email contains a link to your donation page to capture high-intent moments instantly.

4. Create a Grateful Patient Program

A Grateful Patient program allows patients and those close to them to express their gratitude to doctors, nurses, and other caregivers through donations, advocacy, or volunteering.

Some suggestions for a successful Grateful Patient program:

• Allocate specific staff members to oversee the program. Remember, these interactions can be complex and deeply personal, so you need to choose program staff carefully
• Create solicitation policies and ensure staff members understand how to approach prospects while avoiding pushiness
• Focus on making outreach personal

In addition to deepening connections with patients and their families, a well-run Grateful Patient program also helps identify and engage individuals who may become future major gift supporters. To learn more about these programs, download our guide to building a thriving Grateful Patient program.

5. Leverage Paid Media

Paid media helps healthcare organizations strategically target and engage high-intent supporters, allowing institutions to maximize their marketing budget while expanding their reach.

Paid media campaigns require a few specific considerations:

• Target high-intent audiences by creating data-driven segments to reach individuals who have shown an interest in specific medical causes or regional institutions.
• Establish a streamlined process to ensure all advertising creative adheres to the institution’s brand guidelines and healthcare privacy and ethical standards.
• Consider using iterative A/B testing to evaluate which messaging themes (e.g., personal grateful patient testimonials versus technical research statistics) resonate most effectively with target audiences. 

6. Prioritize Donor Stewardship & Retention

Strong donor relationships and high retention rates save time and money. New donor acquisition is costly. Raising $1.00 from a new donor can cost up to $1.50, compared to $.20 per dollar raised from existing donors. It also enhances your organization’s reputation, increases the chance that loyal donors will upgrade, and strengthens their network—a happy donor is more likely to recommend the organization to a friend.

A few suggestions to support your donors:

• Personalize communications as much as possible through donors’ preferred channels
• Show gratitude soon after gifts, using donor-centric language and highlighting their impact
• Ask for and implement feedback (when possible)
• Get leadership involved—engaged leadership enhances fundraiser performance, setting the tone for external donors/creating a culture of giving within the organization

7. Focus on Mid-Level

Mid-level donors are often overlooked, yet they represent one of the most loyal and high-potential segments in any healthcare fundraising program. With an average multi-year retention rate of 65%, these donors not only provide sustainable revenue but may also be future candidates for major gifts or legacy giving.

Strategies for building a thriving mid-level program:

• Create a distinct mid-level donor tier with its own stewardship and recognition plan
• Use a specialized data analytics and wealth screening platform to identify mid-level and major donors with capacity and affinity for deeper engagement
• Personalize outreach—letters, calls, or in-person interactions—to foster stronger connections
• Provide behind-the-scenes access or mission-driven experiences to deepen their investment
• Test messaging and offers that reinforce their unique impact within your organization

While annual and major giving often get the spotlight, a well-cultivated mid-level program can fuel long-term growth, balance your fundraising portfolio, and build a more resilient donor community. For more, explore the Mid-Level Accelerator or our guide on Cultivating Stronger Communities: Nurturing a Thriving Mid-Level Giving Program in Nonprofit Healthcare Organizations.

8. Implement Planned Giving Programs

Planned giving (or legacy giving) focuses on securing future gifts through bequests, charitable gift annuities, or beneficiary designations. Often, these gifts allow supporters to donate much larger amounts than they would otherwise be able to contribute, allowing them to leave behind a legacy of charitable support for your cause. This is a highly effective tool for long-term stability.

To successfully implement a planned giving program, consider the following tips:

• Market the legacy aspect of planned giving. For example, create an exclusive legacy society to recognize those who have included your institution in their estate plans.
• Target potential donors (often older, loyal supporters) on planned giving and how it can allow them to support the institution’s future without impacting their current cash flow.
• Educate your team and provide guidelines, ensuring they are capable of discussing complex assets but advising donors to consult their own financial and legal professionals.

9. Promote Corporate Matching Gifts

Matching gift programs are corporate social responsibility (CSR) initiatives offered by corporations. When an employee of one of these businesses donates to a nonprofit, healthcare institution, community group, or other charitable organization, their employer will match the donation. For example, if an employee donates $200 and their employer matches the donation at a 1:1 ratio, your institution will receive a total of $400.

In order to maximize matching gifts, consider these tips:

• Choose matching gift software that integrates with your existing fundraising software and donation page, so donors can instantly check their eligibility.
• Promote matching gifts heavily during your campaigns to spread awareness and educate donors on how to take advantage of them.
• Send automated follow-up emails nudging donors to submit matching gift information to their employer after they give.
• Solicit corporations for match or challenge gifts that can be used to support direct response fundraising (e.g., a corporation commits $100,000 for October Breast Cancer Awareness campaign efforts). This can be a challenge that is funded 100% regardless of how much your organization raises, or it could be a match that is matched dollar for dollar based on how much is donated.

10. Organize Cause Marketing Campaigns

Cause marketing campaigns involve partnering with a for-profit organization to raise money for the healthcare organization’s cause. Typically, both organizations market the campaign. For example, a cancer research center might partner with a local clothing store to create custom shirts with the proceeds going to the healthcare organization.

Components to include when creating a cause marketing campaign:

• Compile a list of “warm” leads to contact – those organizations that have engaged or shown interest in your institution
• Identify and communicate the advantages the business will gain from the partnership.
• Create guidelines or a contract to ensure both parties uphold their responsibilities and avoid any financial disputes.

11. Host Community-Driven Fundraising Events

Community-driven fundraising events focus on engaging and involving the local community in the fundraising process and fostering a sense of shared purpose – like the American Heart Association’s annual Heart Walk in communities across the country. On a local level, a community health center found success hosting an annual rock concert featuring its own physicians.

What to consider when creating a community-driving fundraiser:

• Understand the community’s preferences and research past successful events. What works for one healthcare organization may not work as well for another.
• Promote in advance, across all channels – with a comprehensive marketing communication plan in place
• Consider offering incentives for participating

12. Implement Data-Backed Practices

Use your own donor and campaign information to develop data-backed healthcare fundraising practices. For example, review previous campaigns to see if a particular fundraising strategy or message caused a spike in donations, and use these insights in a future campaign.

Putting it into practice:

• Ensure you have the right tools in place
• Properly attribute conversions to the specific channel where they were sourced
• Always consider date privacy and security, as well as any regulatory compliance issues
• Identify (and celebrate!) successes and failures, then adjust accordingly

Essential Tools and Services for Healthcare Fundraising

Robust, secure constituent relationship management (CRM) system

• A CRM is software that helps manage and track interactions with donors, volunteers, and other stakeholders, enabling you to build stronger relationships and improve fundraising efforts.

Donor data analytics tools

• Often part of CRMs or donor management software, these tools analyze donor information to help you understand giving patterns, identify trends, and improve fundraising strategies. You can use these tools to identify mid-level and major donor prospects, learn more about existing donors, segment donors, personalize communications, and predict future donor behavior.

A marketing and fundraising partner

• AGP can do the heavy lifting and execute your healthcare fundraising campaign strategy. We can also provide expert advice on copy, creative, and design that align with your organization’s branding.

Healthcare organizations should also consider the other professional services they may need to successfully fundraise, such as legal services and an internal development team, which may require adding new staff or restructuring existing roles or departments.

Additional Resources

Healthcare fundraising is critical for filling financial gaps so organizations can improve patient care, upgrade equipment, bolster staff, or expand their facility. Through effective fundraising strategies, healthcare organizations can better serve their communities, meet urgent needs, and reach their biggest goals.

AGP understands the unique needs of healthcare organizations, and with our extensive experience in healthcare marketing, fundraising, and the latest technology, we will bring our deep knowledge and connections to empower your success.

To learn more about how to hone your fundraising skills, check out these additional resources:

• How to Grow Your Impact with Nonprofit Omni-channel Marketing. Discover how to launch a seamless, integrated communication strategy with this guide.
• What is Mid-Level Giving? + How It Fosters Loyal Support. Understand the basics of mid-level giving and the unique benefits of targeting this segment of your supporters.
• The Urgent Case for Mid-Level Giving: Healthcare Funding Stability in Uncertain Times. Download our free eBook to learn how focusing on mid-level donors can boost stability and provide sustainable funding to your healthcare.