Association survey highlights significant pressures on charity research funding

The Association of Medical Research Charities (AMRC) is calling on public donors and the government to take urgent measures to help their members weather the economic downturn. This follows a survey which revealed more than three quarters of them, the UK’s 117 leading medical and health research charities, predict that the downturn will have a significant impact on their life-saving and life-changing work.

The call for donor support is a very simple one: corporate and public income, on which the vast majority of charities rely, are more important now than ever. Asked to highlight sources of income likely to be most affected by the economic downturn, members ranked investments as particularly vulnerable, at 68.1%, followed by legacies (51.9%), corporate giving (44.1%), public donations (35.1%) and trusts and foundations (29%).

AMRC’s members have indicated that levels of charity research funding over the next 1-2 years will come under significant pressure due to the recession.  When asked, about one tenth (9.3%) of respondents said they expected to increase their funding in 2009-2010.  Approximately half (51.9%) said they plan to keep research funding at the same level as last year, while about a quarter (25.9%) plan to reduce their funding.  AMRC members who plan to curtail funding estimated reductions of anywhere between 10 and 40%. 

In 2008-2009, AMRC members spent an estimated £936 million on research, compared with £826 million in the previous twelve months.

While acknowledging the impact of the recession on money available within government, its support for charities must include:

Maintained investment in science and medical research
Commitment to the long-term future of the Charity Research Support Fund (CRSF)
Release of already committed funds for CRSF in 2009 and 2010
A better regulatory, VAT and tax environment for medical research charities
Encouragement of public funders to co-fund and collaborate more with research partners across the sector
AMRC’s Chief Executive, Simon Denegri said:

'These are uncertain times for medical research charities.  AMRC's survey suggests that while charity funding across the whole spectrum of medical and health research in the UK is being impacted by the downturn, smaller charities funding work into less common conditions are being hit particularly hard.  And while their commitment to supporting science in the long-term is undimmed, their ability to weather the short-term will be dependent on an equal commitment from the donating public, Government and their university partners.  The end-product, such as new treatments, therapies and innovations, will more than repay themselves in the health and wellbeing of the public.'

He continued:

‘Donors and supporters of medical research charities should be encouraged by the clear message that AMRC's members are actively looking at closer collaboration, co-funding and other options for working in partnership as a means of both cutting costs and making the money they raise go further in supporting quality research.  We urge the Government to support these efforts by not only maintaining its investment in science but also continuing to focus attention on reducing the regulatory burden which has grown in recent years.’

Commenting on the impact of the recession on research funding by his organisation, Philip Butcher, Chief Executive of the Muscular Dystrophy Campaign (http://www.muscular-dystrophy.org/) said: "The Muscular Dystrophy Campaign has invested over £50million since the charity was formed on basic scientific research.  This longterm approach finds us on the cusp of a number of major potential advances with 6 clinical trials in the UK alone and with many more happening elsewhere in the world.  The hopes of families have never been higher.  At the same time we also find the charity's income under massive pressure due to the economic situation.  This year we have had to reduce our research budget by 15% to balance the books.  Who knows what will happen next year?”

Vincent Poupard, Treasurer of the Ataxia Telangiectasia Society (http://www.atsociety.org.uk) said: "As a small charity with some 55% of our revenue dependent on income from trusts and foundations which themselves rely on investment performance, we must plan for static or declining receipts over the next year or two. The consequence of this is that where formerly we would commit to fund a three year research project, confident of meeting its costs from relatively predictable annual receipts, now we are reluctant to enter into medium-term commitments unless we have already accumulated and set aside, in cash, the bulk of their anticipated costs.  This is a tragedy since, replicated across all charities, the result will be a marked decrease in the amount of research funded by the sector."

Norman Barrett, Association for International Cancer Research  (http://www.aicr.org.uk) said: "The cost of funding a research grant to try and improve the prevention, detection and treatment of cancer has gone up by 20% over the last three years whilst legacies and regular donations have fallen by 5%.  We are very concerned, therefore, about the impact of the economic climate on our ability to make progress against cancer."