Private Foundations

1
Faith, Hope, and Charity (aka critical
funding for world-transforming research)

• Private Foundations
• and the Global economic crisis
• Tara Murphy
• Director Of Research Development
• Harvard Faculty of Arts and Sciences
• NCURA Region I -- RADG
• Feb. 26, 2009

2
But maybe thats not (yet) quite so necessary as
it now seems

• The economic crisis has many of our researchers
  preparing to elbow their way to the front of the
  crowd for funding that remains

3
Private Foundations Some Quick Background

• More than 72,000 grant-making foundations in the
  United States, according to the Foundation Center
• Provide a broad range of support for a broad
  range of activities, including
• - Social services, advocacy, education, arts
  programs, community building endeavors, and so
  on
• - Policy-related research and initiatives
• - Lab-based science, including dedicated
  funding programs for scientists in the early
  stages of their careers .

4
Private Foundations Who Funds Them?

• Most foundations generate their grant-making
  budget via some combination of endowment income,
  support from other entities, and active
  fundraising, the outcome of which is often also
  invested and/or dependent on investments.
• The (unfortunate) implication is that private
  foundations are, like the rest of world, subject
  to the ups and downs of the financial markets.
• Indeed, a Council on Foundations report released
  in February 2009 stated that the decline in asset
  values among U.S. foundations in 2008 had
  averaged 28

5
Private Foundations Not Necessarily All
Bad News

• Nonetheless, an October 2008 report from the
  Foundation Center, which looked at the private
  foundation communitys response to past economic
  downturns, did offer some cause for optimism.
• The report found that in past recessionary
  periods 1980, 1981-1982, 1990-1991, and 2001
  U.S. foundation giving in inflation-adjusted
  dollars did not decline and, in fact, even
  increased slightly.

6
Private Foundations Not Necessarily All Bad
News
7
Private Foundations Not Necessarily All Bad News

• Multiple factors helped to moderate the impact of
  reduced assets on overall foundation giving, most
  notably
• - Many foundations, including some of the
  nations largest, determine their annual
  grant-making budgets based on a rolling average
  of asset values over the prior two-five years a
  practice that contributes to more stable levels
  of giving among private foundations in general
• - A number of foundations were willing to dip
  into their capital to ensure that previous
  multi-year commitments were met
• - A few even increased their payout rate to
  provide needed resources in the face of
  diminishing funding availability all around

8
Great! But what about the foundations that fund
our researchers???

• Heres the adage If you know one private
  foundation, then you know one private foundation.
• Accordingly, the current responses of individual
  private foundations to are all over the map. (In
  fact, the Foundation Center cautions that the
  aggregate figures for the early 2000s obscure the
  fact that some foundations had to make deep
  reductions in their funding).
• The slides that follow summarize whats known
  about the reactions of foundations with relevance
  for university-based research -- with a strong
  emphasis on the whats known.

9
Worst Case Scenarios
10
Juvenile Diabetes Research Foundation

• From JDRF website The economic upheaval of the
  past few months has affected JDRF. JDRFs
  safety, soundness, and liquidity are not impacted
  we are financially capable of weathering a
  financial downturn. However, based on lower
  revenues and investment returns, JDRF must take
  action now on all expenditures.
• Not accepting applications (originally due
  between January and March 2009) for Program
  Project Grants Regular Research Grants Clinical
  Investigation Grants and Innovative Grants. The
  Scholar Awards program for FY 2009 has also been
  cancelled.
• JDRF will still accept applications in FY2009 for
  Postdoctoral Fellowships Advanced Postdoctoral
  Fellowships Career Development Awards Early
  Career Patient-Oriented Diabetes Research Awards
  High Priority, Short-Term Bridge Awards, and
  assorted RFAs.

11
Camille and Henry Dreyfus FoundationDedicated
to the advancement of chemical sciences

• No official statement issued, beyond the fact
  that the foundation will honor all outstanding
  commitments
• A number of programs suspended without further
  notice, including
• The New Faculty Awards Program
• The Faculty Start-Up Awards Program
• The Senior Scientist Mentor Program
• Active programs include
• The Dreyfus Prize in the Chemical Sciences
• Camille Dreyfus Teacher-Scholar Awards Program
• Henry Dreyfus Teacher-Scholar Award Program (New
  Deadline)
• Postdoctoral Program in Environmental Chemistry
• Special Grant Program in the Chemical Sciences

12
Burroughs-Wellcome Fund

• Statement release February 23, 2009
• After careful consideration, we have decided to
  suspend the usual slate of grant programs for
  fiscal year 2010, which begins the fall of 2009.
  We will not be accepting applications for any of
  our programs except for our two newest, the
  Pre-Term Birth Initiative and Career Awards for
  Science and Mathematics Teachers
• Last November, we sent notices to our faculty
  awardees alerting them that, although we will pay
  the full amount of their grants, we would do so
  over an extended pay period. This action has
  allowed us to preserve our assets during these
  difficult times, enabling us better to be in a
  position to make new awards when the economy
  improves.

13
William and Flora Hewlett Foundation

• Statement released October 29, 2008
• The foundation plans to increase the percentage
  of its endowment that will be paid out in grants
  in 2009 to help compensate for a recent sharp
  decline in its assets. Despite the increased
  payout rate, the foundation anticipates that its
  overall grant-making in 2009 will likely decline
  by 5 7. In addition, the foundation will
  probably not embark on some new initiatives it
  otherwise might have considered.

14
Jane Coffins Child Memorial Foundation and Helen
Hayes Whitney Foundation

• Jane Coffins Child -- Committed to continuing its
  postdoctoral fellowship funding, and aiming to
  keep the number of fellowships funded per year at
  about twenty but expects that it will have to
  fund a couple of fewer fellowships this year.
• Helen Hayes Whitney Foundation Has already cut
  back the number of fellowships awarded from 23 to
  20 expects a further drop in the number of
  fellowships funded this year.
• Damon Runyon Cancer Research Fund is facing a
  similar situation.

15
The Medical Foundation (TMF) Farnsworth Trust
Scholars Program in Aging Research

• The Farnsworth Trust Scholars Program in Aging
  Research supports established researchers and
  policy analysts, will not be offered for the 2009
  cycle.
• Patterson Trust Fellowship Program in Brain
  Circuitry will not be offered for the 2010 cycle.
• All other TMF-managed funding programs remain
  intact. (See good news section).

16
David and Lucile Packard Foundation

• Intends to honor current grant commitments and
  increase payout rate from endowment.
• However, the absolute dollar amount of grant
  making will be down.

17
Starr Foundation

• Statement released September 25, 2008
• With the value of its holdings in American
  International Group plunging 93 over the past
  year, the Starr Foundation, which is financed
  largely by AIG stock, has been forced to reduce
  its grant-making and either defer or cancel many
  new initiatives. While new proposals will be put
  on hold, the foundation will honor its existing
  commitments.
• Smaller grants are predicted for the future. New
  initiatives will be postponed or cancelled
  entirely.

18
Carl and Ruth Shapiro Family Foundation

• Announced recently that it will award no new
  grants in 2009 due to 145 million loss resulting
  from Madoff investments.
• Enormous impact for Boston-based organizations,
  which received more than 100 million from the
  foundation over the past decade. (Awardees
  include Brigham and Womens Hospital, Brandeis
  University, Boston Medical Center, and Beth
  Israel Deaconess Medical Center, to name just a
  few).
• The foundation expects to honor its current
  commitments for both capital projects and
  multi-year grants.

19
Other Madoff-Impacted Foundations

• Picower Foundation, which has given some 268
  million to a range of organizations including the
  New York Public Library and the Picower Institute
  for Learning and Memory at MIT, is shutting down.
• The JEHT Foundation, which directed its funding
  towards the promotion of justice, equality, and
  human dignity, has also closed.

20
James S. McDonnell Foundation

• Proposal guidelines include the following
  requirement
• A letter from the appropriate administrative
  official at the sponsoring institution stating
  that the institution, as the official grantee
  understands and agrees that the award payments
  may be paid in stock.
• Not necessarily related to the current economy,
  but an interesting spin given the circumstances!

21
The better news is that some foundations have
been energetically counting their pennies and
it seems there is still some funding left
22
Howard Hughes Medical Institute

• Gilliam Fellowships for Advanced Study Program
  expanded from five to nine fellowships per year.
  (Fellowships are intended to further the graduate
  science education of talented students from
  disadvantaged backgrounds who have worked in the
  labs of top HHMI scientists).
• Up to 25 million in new grants will be awarded
  via an expansion of the Med into Grad
  initiative, which aims to support the development
  of graduate training programs that incorporate an
  understanding of the principles of medicine and
  disease into the education of PhD researchers.
  (Awarded to institutions).

23
Bill and Melinda Gates Foundation

• Intends to award 3.8 billion in grants in 2009.
  This is less than the foundation had anticipated
  giving away, but still an increase over the
  funding it distributed last year.
• Encouraging other private and government funders
  to keep making grants, despite/because of current
  hardships.

24
Ellison Medical Foundation

• Committed to providing 40 million in Scholars
  Awards in 2009.
• The only change being considered is a
  redistribution of foundation resources to once
  again fund infrastructure awards. Infrastructure
  awards were put on hold three years ago in order
  to double the number of Scholars Awards provided,
  as a counterweight to diminishing pay-lines at
  NIH. Should NIH funding increase, infrastructure
  awards will be resumed.

25
Searle Scholars Program

• Major increase in awards from 240,000 to
  300,000 per award in January 2008. Fifteen
  grants, which are among the top monetary awards
  for exceptionally creative young scientists in
  chemistry and the biomedical sciences, are
  awarded per year.
• No changes anticipated for the foreseeable
  future.

26
The Medical Foundation (TMF) Most Funding
Programs

• The vast majority of TMF-managed funding programs
  will remain active
• Charles A. King Trust Postdoctoral Fellowship
  Program
• Charles H. Hood Foundation Child Health Research
  Awards
• Davis Foundation Postdoctoral Fellowship in
  Eating Disorders Research
• Deborah Munroe Noonan Memorial Research Fund
• Edward M. Kennedy Scholars Award in Health Policy
  Research
• Goldhirsh Foundation Research Awards Program
• Klarman Family Foundation Grants Program in
  Eating Disorders Research
• Lymphatic Research Foundation Awards Programs
• Smith Family Awards Program for Excellence in
  Biomedical Research

27
The Ford Foundation

• Statement released December 15, 2008
• The Ford Foundation has announced that it will
  honor all outstanding commitments to its grantees
  and will increase, in 2009 and 2010, the
  percentage of endowment that is paid out in
  grants.
• Fords president, Luis A. Ubinas noted that the
  foundation was highly liquid, ensuring the
  capacity to continue making grants without
  disruption. Ford also instituted a series of
  aggressive internal cost controls early in 2008
  that have helped make more funds available for
  grant-making.

28
John D. and Catherine T. MacArthur Foundation

• Statement released November 17, 2008
• The MacArthur Foundation understands the
  importance of philanthropy in difficult economic
  times. While our endowment has declined this
  year, we remain committed to being a long-term,
  steady funder In past recessions, we maintained
  our grant-making level, and we intend to do so
  again now. Our total philanthropy is increasing
  from 2007 to 2008. We also expect to maintain or
  increase our grant-making in 2009, despite the
  performance of the market to date.

29
Carnegie Corporation of New York

• Statement released December 19, 2008
• No sector has been immune to the downturn, not
  you and not Carnegie Corporation of New York.
  Given the gravity of the situation, we know that
  there are no simple answers to the challenges
  that we all face. What is certain, however, is
  that we remain committed to our grantees and to
  carrying out Andrew Carnegies vision of
  philanthropy We are focused today on making
  certain that all our grantees know that
  Corporation support will be there for them. Most
  important of all, we are committed to fulfilling
  all the grants that have been approved.

30
Andrew W. Mellon Foundation

• Statement released November 5, 2008
• The Andrew W. Mellon Foundation has certainly
  experienced some of the effects of the current
  financial environment. Nevertheless, we do not
  foresee significant retrenchment or dislocations
  in our grant-making. All existing commitments
  will be honored, and the Foundation will continue
  to be alert to the needs of grantees as
  circumstances develop.

31
John Templeton Foundation

• Statement issued in July 2008
• Assets are expected to increase 50 by the end of
  2009 following the death of the foundations
  founder.

32
Robert Wood Johnson Foundation

• Statement released October 30, 2008
• The Robert Wood Johnson has been affected
  directly by the turbulence and downturns in the
  financial markets over the past few months.
  Yes, our financial assets are lower than they
  were earlier this year. But the long-term nature
  of our mission and our objectives dictate that
  we not react to daily fluctuations in the
  financial markets. For 2009, we expect our
  program budget for grants to be approximately the
  same as 2008 levels, unless future financial
  circumstances warrant a course correction.

33
Alfred P. Sloan Foundation

• Statement issued October 22, 2008
• Announced grants totaling 2.7 million as part
  of a new initiative to study the ongoing
  financial markets crisis and improve public
  understanding of economics and finance.
• Grants awarded to the Brookings Institution,
  NBER, the Wharton Financial Institutions Center,
  and the NewsHour with Jim Lehrer.

34
The answer is We dont know. Harvard FAS
Sciences Division has active funding from 111
private foundations, total. All those that have
released statements or responded to phone calls
are noted here.

• What About All Those Other Found-ations?

35
The Foundation Center has launched an on-line
news room, called Focus on the Economic Crisis,
that provides ongoing updates, reports, and other
resources http//foundationcenter.org/focus/econ
omy/Foundations that fund the sciences are
tougher to track.

• How Can We Prepare for Whats Coming Next?

36
To summarize The daily headlines have got all
of us expecting the worst
37
There will likely be enough funding available to
keep our scientists doing their science

• But with a lot of commit-ment and creativity, and
  perhaps just a little bit of luck

38
And our scholars immersed in their papers and
books

39
And then our faculty can stop worrying about
finding money and go back to scaling new
(intellectual) heights

• If we are lucky, it wont be too long before the
  crisis passes.

40
Those of us who support them can kick up our
heels and enjoy the good times

• And, relatively speaking, of course

41
Questions and comments are welcome!

• Tara Murphy
• Director of Research Development
• FAS Research Administration Services
• Harvard Faculty of Arts and Sciences
• murphy2_at_fas.harvard.edu
• 617-495-6907