Tuesday, March 7, 2017


HELP!  HOW DO WE HANDLE FREQUENT REQUESTS FOR CONTRIBUTIONS?

If your office is like many with which I have consulted, you receive numerous requests for monetary contributions or donations of toothbrushes, toothpaste, stickers, toys for children or, occasionally, even for the donation of dental services.  The people seeking donations and contributions are often patients or parents of patients, and it may create a touchy situation to simply respond, “No.”  Most of the projects for which they are soliciting funds are worth your support; however, your practice cannot meet every request.

What to do?  Answer: establish a Benevolent Fund (BF) in your office.  Decide an amount per year you can afford to give as monetary contributions or in the form of donated items.  Include that amount as a line item in the annual budget for the office.  It might be tracked on the monthly Profit and Loss Statement as a Marketing expense or as an Administrative cost.  Keep in mind that Marketing expenses typically are allotted 2% to 5% of net collections while Administrative costs may require 7% to 11% of net collections. 

Doctor, the second step to ease the burden of having to decide on-the-spot, at-the- moment whether or not to contribute when asked, is to choose a seasoned staff member to administer the Benevolent Fund.  Name a person familiar with your preferences for charitable projects, one who can tactfully refuse when a patient is insisting the office must make a donation to his/her pet charity.  When asked, you can direct the solicitor to the Administrator who knows the balance of funds available and can either make arrangements for the contribution/donation or tactfully explain funds are depleted for the year.

With a BF set up and a staff member in place to administer it, you have unobtrusively told the person requesting a contribution several positive things: (1) Your practice is a charitable one that sets money aside each year for donations.  (2) You, doctor, consider giving back to worthy projects in your community so important that you have designated a staff member to facilitate contributions.  (3) If budgeted funds are depleted for the year, the solicitor has no reason to just consider you too stingy to contribute to his/her project.  Funds have simply been spent.


 
 
 

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