Simultaneously, a third form of philanthropic organization emerged, private foundations, such as the Rockefeller, Carnegie, Commonwealth, W.K. Kellogg and Kresge foundations, that were endowed by some of the wealthiest American families. The long-term guarantee of income enabled foundations to concentrate on a broader range of issues than the narrow focus of local charities or of the single-disease-oriented national health agencies.
The Rockefeller Foundation, which was established in 1909 with the proceeds of 73,000 shares of stock in the Standard Oil Co., helped establish the University of Chicago, the schools of public health at Johns Hopkins in Baltimore and at Harvard in Boston, the Montreal Neurological Institute, the eponymously named research university in Manhattan and countless other research facilities.
Foundations were critical for establishing the infrastructure of medical research by providing nearly as much financial support as governmental agencies. Private philanthropy’s dominance peaked prior to the start of World War II, but began to wane after the war as the growth of public confidence in medical research created a heightened demand for more public financial support for the medical sciences.7
Some wealthy donors took this cue and focused their giving on providing funding to creating research programs rather than constructing magnificent research edifices and hospital wings bearing their names. A case in point is the medical institute bearing the name of the late, reclusive billionaire, Howard Hughes, that was established in 1953 (HHMI).8
A unique feature of the HHMI is that it employs those talented investigators selected as awardees but who conduct their research in the laboratories of their host institutions. Mr. Hughes had amassed a fortune, derived primarily from the profits of his aircraft company, and bequeathed his shares to his institute. But his eccentric behavior, living in near complete seclusion in his final years and the discovery at the time of his death of competing wills resulted in many legal challenges to his bequest. Eventually, it was upheld by the U.S. Supreme Court, allowing for the transfer of the $5.2 billion proceeds to the HHMI.9
The Gigaphilanthropists
Although the NIH maintains its dominant role in funding medical research, the rising costs of funding new technology, coupled with the budgetary gridlock so often gripping Congress, require robust, alternative sources of support. Thankfully the tradition of philanthropy in the U.S. lives on.
Once again, private foundations have emerged as key financial supporters for research. The benefits for donors interested in medical research include the freedom to think boldly, pursue unconventional hypotheses, support orphan conditions and fund whomever they choose, including early-career investigators.10 In addition, private support unshackles investigators, who work across borders, from the onerous paperwork required by taxpayer-funded sources.
