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January 22, 2025

Philanthropy provides $30B annually for science and health research, funding that tends to stay local

Credit: Unsplash/CC0 Public Domain
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Credit: Unsplash/CC0 Public Domain

The foundations making charitable donations to support scientific and health research mostly give to institutions in their home states.

That's what I conducted with two fellow data scientists, and . In analyzing foundation , we determined that nearly 40% of those grants and 60% of the total number of dollars given backed scientific and health research initiatives based in the donor's or the foundation's own state.

We also found that these donors and tend to support the same institutions year after year. Roughly 70% of the scientific and health research grants that foundations made one year were provided again the next year. What's more, there's a 90% chance that foundations that have supported an institution for seven years straight will support the same institution again the following year.

We analyzed Internal Revenue Service data drawn from 990 forms—paperwork that foundations are required by law to file annually.

We identified 69,675 nonprofits that either performed scientific research or supported that kind of research. Those nonprofits received nearly 1 million unique grants from foundations over the previous decade. Those donations totaled more than US$30 billion in 2019 alone.

Here are three examples.

While on average only 2% of foundation funding for science and health research went to support work in the state of Washington, the Bill & Melinda Gates Foundation, located in Seattle, gave over 20% of its research funds to projects in that state from 2010 to 2019.

The Lilly Endowment gave 62% of all of its to institutions located in Indiana, where it's based.

The Dennis Washington Foundation, which is located in Missoula, Montana, funded health and science research exclusively at universities in Montana—providing more than $20 million for those endeavors.

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Why it matters

While the highly local nature of private funding for this research surprised us, it is relatively .

At the same time, the local focus of many private funders is at odds with how most health researchers and , which typically involves national or even global teams of experts.

The $30 billion in annual funding from foundations is also significant simply because of its scale. This sum may equal as much as half of what the to support scientific and health research.

The , a U.S. government agency responsible for medical research, has a roughly .

And the , another federal agency that supports scientific research, has an approximately $10 billion annual budget.

The federal government funds through , including the , but the precise total of that support is hard to determine.

What still isn't known

The available data makes it possible to identify only the foundation that provides a and its recipient. Details regarding the goals or purpose of this funding are scarce. That makes it hard to assess the impact foundations have for scientific and .

Provided by The Conversation

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Get Instant Summarized Text (GIST)

Philanthropic foundations contribute $30 billion annually to science and health research, with a significant portion of this funding remaining local. Nearly 40% of grants and 60% of the funding support initiatives within the donor's state. Foundations often repeatedly fund the same institutions, with a 90% likelihood of continued support after seven years. Despite the local focus, this funding is substantial, potentially equaling half of the U.S. government's annual research funding. However, the specific goals and impacts of these grants remain unclear.

This summary was automatically generated using LLM.