Everything You Need To Know About Voluntary Health Organizations Industry 2021

 High administrative costs associated with voluntary health organizations are limiting the growth of the voluntary health organizations market. Voluntary health organizations require funds to keep their organization running. 

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A percent of the amount received through funding is spent on staff, IT services (associated with proper infrastructure and operations), building utilities, legal services, other office supplies, and maintenance. Each organization allocates a percent to administrative costs. According to the Center for American Progress's press release in April 2019, in the USA, the administrative spending for non-profit institutions was 25% of the total spending of the institution. However, in some cases, the high administrative costs indicate fraud or unwarranted expenditures by some organizations. Most of the donors would prefer to see their philanthropic donations go directly to an organization's core mission, rather than to administrative expenses, and such high and unwarranted expenditures would affect their willingness to donate. Therefore, the high administrative costs associated with voluntary health organizations are likely to hinder the voluntary health organizations' market growth.

Introduction to online fundraising is gaining popularity in the voluntary health organizations market. Major players operating in the industry are highly focused on introducing digital philanthropy which is widely favorable among donors (and the non-profits they support). For instance, non-profits have reported a 77% increase in online revenue over the past 5 years with email messaging driving 13% of online giving. Also, in 2018, 8.5% of overall fundraising was received through online channels. On average, non-profits raised $1.77 through Facebook for every $100 of total online revenue in 2018.