Conference considers steps to increase philanthropic funding of R&D
The contribution of charitable foundations and other non-profit organisations to funding research and development (R&D) in Europe could be significantly increased by sharing experiences and cooperating at a European level, a conference in Brussels has heard. Unlike in the US, where the non-profit sector accounted for almost 13 billion euro (or 4.5 per cent) of overall investment in R&D in 2003, the contribution of foundations to research funding in Europe remains low. The UK is a notable exception, where the donation culture is well developed and organisations such as the Welcome Trust and Cancer Research UK invest significant amounts. To address this often overlooked issue, the Commission established an expert group to produce a report on 'The role of foundations and the non-profit sector in boosting R&D investment', which was published in September 2005. As a follow up to that report, a conference on 'Giving more for research in Europe' was convened in Brussels on 27 and 28 March to consider its recommendations and define what steps are needed in order to improve the situation. Opening the conference, EU Science and Research Commissioner Janez Potocnik stressed that while the amount of money devoted to R&D by foundations in Europe remains low, some EU governments have established successful initiatives and legislative measures to address this reality. 'These initiatives deserve to be more widely known, as they provide useful examples for other countries to follow,' he said. This is why the Commissioner is supporting one of the main recommendations of the expert group report - the establishment of a European forum of research foundations. According to the group, the forum will provide 'a permanent mechanism at the European level to share experience, review best practices, and promote synergies and cooperation'. There was wide support for the proposal among conference participants, who represented foundations, universities, research institutes, companies and public authorities across Europe. Dr Wilhelm Krull, vice-chair of the European Foundation Centre (EFC), which helped to organise the event, admitted that foundations are a 'heterogeneous bunch', but stressed that they have a lot in common too. 'There are opportunities for mutual learning, and we would welcome the creation of such a European forum.' Other speakers stressed the importance of foundations working together across borders in order to benefit from synergies, economies of scale and the increased visibility that such cooperation will generate. This is particularly the case when non-profit organisations are operating in areas that are already under-funded. The discussions also revealed a number of key factors at the level of individual organisations that are needed in order to increase the funds available for R&D. Transparency and accountability are crucial if foundations are to win the confidence of donors, agreed participants, and the idea of defining a European code of conduct for foundations won a number of supporters. Robin Stephenson from the Health Foundation in the UK believes that a code of conduct would not only allay public fears about the potential misuse of donations for terrorism, for example, but also improve the general approach and response of foundations. 'The great majority of foundations are legitimate and act entirely properly, so we should recognise codes as something that enhance the overall benefit of the sector,' he said. Another delegate highlighted the fact that those organisations that enjoy the greatest success in generating income benefit from clearly defined and long term fundraising strategies, and professional teams to manage this key area of their activities. In nearly all cases, delegates agreed that the best approach is for foundations is to have a clear mission statement and highlight to the wider public the benefit of its activities, while adapting its approach according to the local conditions and culture. Equally, there are a number of external factors that affect the work of foundations that must also be addressed. The most frequently cited during the conference was the regulatory and fiscal environment in which they operate, and governments were urged to consider what they could do to encourage charitable donations. While legislative proposals may be required, there are also a number of 'soft' measures that public authorities can consider, such as matching fund schemes. 'It's often easier to set up a matching funds scheme than new tax incentives in many cases,' explained Kari Oiseth from the Norwegian Ministry of Education and Research, referring to her own experience. There is also a crucial role for the Commission to play, not least in addressing the current lack of data concerning R&D funding by foundations in Europe. The EU executive was also encouraged to consider the idea of establishing a European statute for foundations as a legal vehicle for encouraging cross border cooperation between organisations and international donations from 'European-minded citizens'. Isi Saragossi from the Research DG stressed that the Commission's role would continue to be a catalytic one, arguing that non-legislative measures would be preferable to regulation in the majority of cases. However, he did identify a role for the Commission in creating more complementarity in research spending by foundations and public funders. 'Unless foundations are filling a total gap in funding, increasing synergies and cooperation in this area is likely to become more important,' he said. The Director General of DG Research, José Manuel Silva Rodriguez, closed the conference by underlining the fact that philanthropic support for R&D deserves serious consideration as a source of investment in knowledge. 'It is important for you to know that foundations hold the key to their own future, for example by how strategic an approach you take to R&D. There is an extraordinary diversity of philanthropic operations in Europe, which is a strength that must be retained, but you must also look to promote synergies and knowledge sharing through cooperation,' he concluded.