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Voluntary Health Organizations Global Market Report 2020-30: COVID-19 Growth And Change

Voluntary Health Organizations Global Market Report 2020-30: COVID-19 Growth And Change

  • December 2020
  • 200 pages
  • ID: 6001442
  • Format: PDF
  • The Business Research Company


Table of Contents

Major players in the voluntary health organizations market are Mercy Ships, American Heart Association, Angelwood, Valley Aids Council, March of Dimes, Amyotrophic Lateral Sclerosis Association, American Lung Association, Muscular Dystrophy Association, Center Industries and AccessCNY.

The global voluntary health organizations market is expected to increase from $46.75 billion in 2019 to $47.08 billion in 2020 at a compound annual growth rate (CAGR) of 0.7%. The slow growth is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The market is then expected to recover and reach $56.84 billion in 2023 at a CAGR of 6.48%.

The voluntary health organizations market consists of sales of voluntary health services by entities (organizations, sole traders and partnerships) that are engaged in raising funds for health-related research such as disease prevention (heart disease, cancer, diabetes, and others), health education, and patient services. Only goods and services traded between entities or sold to end consumers are included.

North America was the largest region in the voluntary health organizations market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period.

In August 2020, Cone Health, a not-for-profit health care network serving people in Alamance, Forsyth, Guilford, Randolph, Rockingham, and surrounding counties, planned to merge with Sentara Healthcare. With the merger of Sentara Healthcare, Cone Health plans to create a combined organization with a unique value-based approach that is focused on keeping people healthy and well, while providing high-quality, accessible, and affordable health care in more ways and more places. Sentara Healthcare is a US-based not-for-profit health system company operating in North Carolina and Virginia, with 12 hospitals, outpatient care centers, imaging centers, and more.

The voluntary health organizations market covered in this report is segmented by mode of donation into online donation; offline donation. It is also segmented by organization type into multilateral organizations; bilateral single government agency; non-governmental.

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. 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.

Increased voluntary contributions are expected to drive the demand for the voluntary health organizations market. Voluntary health organizations generate their revenue primarily from voluntary contributions from the general public, which are to be used for general or specific purposes that are connected with health, welfare, or community services. For instance, the total voluntary contributions to the WHO (World Health Organization) in 2018 amounted to $2.2 billion. Additionally, WHO received $615 million in 2018 for the outbreak and crisis response. Therefore, a growing number of voluntary contributions from the general public are predicted to fuel the demand for the voluntary health organizations market.

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