How important is Philanthropy in medical research?Will it remain so in the future?

Elizabeth Foley | 26 September 2014

The Future of Medical Research- Sydney Harbour Marriott

Research Australia: Mission and Goals

A well informed, engaged society

Know research = improved health and wellbeing Support government funding for research Donate to research

A well informed, engaged society

Know research = improved health and wellbeing Support government funding for research Donate to research Pursue a career in research Take pride in Australia’s international reputation Participate in clinical trials Understand lag between discovery to new treatment Willing to have health records and tissue samples used for

research

H&MR’s share of philanthropy

Note UK proportion is also 10%

Australia’s Philanthropy Market by Cause

Mean score / 5

Medical research 4.2

Hospitals &assistance for the sick

4.1

Community welfare (in Aust)

3.7

Animal welfare 3.4

Education (support for schools or higher

education)3.3

Environment & conservation

3.2

International aid 2.7

Arts and culture 2.2

In Australian donors’ minds, medical research is clearly number one2,000 respondents selected randomly were asked to rate each cause (presented randomly) with a number from 1 to 5 based on their views as to the merit of each for donations

1 5

Source: yellowSquares Market Research, October 2013

Page 3

2 3 4

least deserving

most deserving

45% of respondents rated medical research “most deserving”, significantly higher than other cause.

Philanthropy in Australia

Why the miss-match?

Donor activity in last year

Funding of H&MR in Australia

AustralianGovernment

States & Territories governments

Non-Government Not-For-Profit

Business Total

$ Million 3,297 776 259 1,220 5,552

% of total 59 14 5 22 100

Source: AIHW, Health Expenditure Australia, 2010-11 and ABS, 8104.0 R&D Businesses, Australia, 2010-11

Sources differ, estimate 5 to 8% of Australian HMR funding is from philanthropy

Only 5% to 8% …so what?

Philanthropy- the Third Vital Source

Different role to Government or Commercial Investment

Valley Of Death

Role of Philanthropy

Supports research that is• Too new, high risk or contentious• At too early a stage, no proof of concept

Bionic ear a great example

Research began in the 1960’s

Bionic ear a great example

Research began in the 1960’s$6 Million Dollar Man…1970’s

Role of Philanthropy

Supports early career researchers with no track record Main Support for rarer diseases research

Priorities for the Federal Government

What research to fund with scarce resources?

Benefit Australians Affects Kids

Saves money

Generates Wealth

Best Researchers

Competitive advantage

Developing world

Strong support for increasing spending on health and medical research

Redirect health savings to additional H&MR

Reduce spending in non-health areas

Increase taxes

No increase to H&MR Funding

Don’t knowunsure

Summary of Support for increasing investment

YES NO Not from health areas

Will additional government investment reduce donations?

Regular donor propensity to donate if government MRFF plans go ahead

2013: H&MR is a government responsibility!2012

Ranking

3rd

1st

4th

2nd

Medical Research Future Fund

Will take 9 years to grow to $20 billion

Payouts to grow to $1 billion p.a. over 9 years• $20m in 2015-16• $500m in 2019-20• $1b in 2022-23

Additional $1b p.a. = 40% of current NHMRC apps would be funded

• Australia: 0.075%• US: 0.216% • UK: 0.127%• Canada: 0.11%

Source: 2013 OECD Scoreboard

How Much is Enough?Government Funding of Health Related R&D, 2012

International experience: UK

• Government funded Medical Research Council invested > £766 million (A$1,385m) in 2012/13,

• The UK ratio of government funding to GDP is 0.127%, compared to Australia’s 0.075%.

• The Wellcome Trust invested £463 million (A$837million) into research alone.

• Cancer Research UK, raised A$887.4 million for cancer research in 2013, up 6 per cent on the previous year.

What makes people give?

Mr Peter Wills AC

The Australian Experience

Wills Review - 2000

NHMRC funding doubled

Grant Review - 2004

NHMRC funding doubled

Philanthropy continued to grow

MRFF Action GroupAAMRI

AusBiotechThe Australian Society for Medical Research

Group of Eight Universities Australia Go8 Deans of Medicine Committee

Medical Deans Australia and New ZealandResearch Australia

Founding Chair Research Australia’s director: Alastair LucasCurrent chair is UBS Peter Scott

Imagine a healthier future campaign

$ Value of donations from regular donors

Most donate < $100

Donation Intentions this year

Are Australian’s interested in science?

Key Take outs

Australians are generous and strongly support donation to health and medical research.

Community is highly supportive of increasing federal investment in H&MR

We need to communicate to donors • MRFF will take 9 years to get to $1b payouts• Philanthropy has a different vital role to play• Proposed level of investment brings us in line with OECD average

Government spending begets giving Giving begets giving

Thank you for listening