Submission Smarter investment Philanthropy

Health Research Australia Fund (HRAF): A Proposal from the Health and Medical Research Sector to Create a Mass-Market Charity to Become a Major Driver for Philanthropy in Australia

Research Australia 19 March 2014 2014 · Submission

In brief

Research Australia proposed a new national charity, the Health Research Australia Fund, to raise donations from ordinary Australians for medical research, modelled on Cancer Research UK. Surveys show Australians rate medical research as the most deserving cause, yet few large charities fund it.

Abstract

This slide presentation, attached to Research Australia’s submission to the 2015 Independent Medical Research Institutes Review, sets out a proposal for the Health Research Australia Fund (HRAF), a mass-market charity that would raise money exclusively for health and medical research. It maintains that philanthropy must play a larger role in growing the sector, but that medical research fundraising is fragmented, has low brand recognition and does not reach lower net wealth donors, the largest source of Australia’s $4 billion in annual donations. It cites a 2013 survey of 2,000 people in which medical research scored highest of eight causes (4.2 out of 5), with 45% rating it most deserving, and notes that most of Australia’s largest charities direct nothing to medical research. HRAF would not conduct research but would make merit-based grants to universities, independent medical research institutes and research hospitals across Australia, with donors able to give generally or nominate a disease. Its model is Cancer Research UK, which raised about A$900 million for research in a year. Focus group research by Metis Healthcare Research estimated that one half to two thirds of potential donors would give if approached. With PwC preparing an operating plan and financial model, the proposal states that HRAF could be operational in early 2015, assuming government support.