Overview                                      
                                                          
May 2006

Dear Friends:

During 2006, the Foundation for NIH completed the tenth year of its operations. The record of the past ten years has confirmed the Foundation as a national leader in the creation of specially-configured, high-impact public-private partnerships. 2006, in particular, was a banner year.

Many things have contributed to our success, but much is owed to a fundamental and complex reality of the new era of biomedical research. Often only new and creative partnerships can best accelerate scientific discovery. Some research initiatives, by virtue of their need for speed and immediate resources, their complexity, their scale, are beyond the capacity of any single sector, much less any single institution, to undertake. They require the resources and expertise of many stakeholders—government, industry, patient groups, academia, philanthropic institutions or other private groups.

The launch early in 2006 of the Genetic Association Information Network (GAIN) and The Biomarkers Consortium (TBC), and the Schizophrenia Metabolic Initiative (SMI) later in the year, along with the ongoing work of the Grand Challenges in Global Health (GCGH) initiative, the Osteoarthritis Initiative (OAI), and the Alzheimer’s Disease Neuroimaging Initiative (ADNI), exemplify the need for and benefits of such partnerships. Each is unique and unprecedented in its realm, but all focus on the special place cross-sectoral partnerships must occupy in biomedical research.

New research requires innovative concepts of public-private partnership formation. We work with our partners to develop and transform them into successful operating realities. (We have had to transform and stretch ourselves in the process as well.) So, you can see why we are so enthusiastic about where building public-private partnerships is leading—as partner goals expand into new areas of research, so do the opportunities for the Foundation to help reach them.

This was particularly true in 2006, and the accelerated activity at the Foundation is strongly reflected in our financial report. During 2006, the Foundation expended a record $56 million for program services. Ninety-seven percent was for research and 3 percent for other programs such as education, training and fellowships. In addition, we expended $2 million during 2006 for supporting services (management, general administration, and fundraising). For every dollar spent in 2006, 96 cents supported programs and 4 cents funded administration and fundraising activities.

During 2006, the Foundation received $78.8 million in private-sector contributions, grants and interest. NIH provided $500,000 in appropriated funds and $457,000 of in-kind and donated services to help support Foundation operations in 2006. Revenue for the 12 months ending Dec. 31, 2006 totaled $79.8 million, and net assets increased by 81 percent to a total of $47.5 million at year-end.

We also want to extend our appreciation to our benefactors and partners and to reiterate our certainty that their generosity and work infuse the promise of health science research with the means for its realization—at a time when that promise has never been greater.  Seeds of research progress planted now will blossom in the lifetimes of most readers of this letter. This is more than a hope. It is our

deep conviction.

Thanks for your continuing support.