Philanthropy: Novartis foundations donate money for this purpose

The Swiss pharmaceutical group Novartis in Basel is one of the largest companies in Switzerland. The medical group sponsors cultural and sporting events and maintains charitable foundations for both charitable and private purposes. Fundraiso shows which projects, organizations and researchers the Novartis Foundations support and how fundraisers can access Novartis funds.

Even teenagers come into contact with the Swiss company Novartis: Anyone with painful swelling, for example, is occasionally prescribed the Novartis remedy "Voltaren" by their family doctor. Novartis has a portfolio of more than 50 patent-protected medicines. Many of these are among the leading products in their therapeutic areas. One bestseller, for example, is "Cosentyx", an antibody therapy for psoriasis and arthritis. According to its own information, Novartis is "one of the largest pharmaceutical companies in the world" with sales of around USD 50.5 billion in 2022. On the Swiss stock exchange, the Basel-based group is one of the five largest companies in Switzerland. In terms of sales, Novartis will also be the seventh-largest pharmaceutical company in the world in 2022. Only its Swiss competitor Roche, with sales of USD 68.5 billion, is ahead of Novartis in third place behind US top dog Pfizer. Novartis is globally active and operates at more than 380 sites in over 140 countries. With around 110,000 employees worldwide, the pharmaceutical giant reliably generates billions in profits year after year.

Novartis has five core therapeutic areas

In addition to maximizing profits for its shareholders, Novartis aims to "improve and extend people's lives with newly developed medicines." In recent years, the Group has focused on five core therapeutic areas: cardiovascular diseases, immunology, neuroscience, solid tumors and hematology. The company was formed in 1996 from a merger of the two Basel-based pharmaceutical and chemical companies Ciba-Geigy and Sandoz. The former subsidiary Sandoz was a division of Novartis until October 2023 and is now listed independently on the stock exchange. Sandoz is a manufacturer of generic drugs and, like Novartis, runs various foundations (see Fundraiso article).

Novartis supports research, emergency aid, culture, social affairs and sport

The name Novartis is not only a saviour for sick and injured people, but also triggers monetary "expectations of salvation" among researchers and charitable organizations in need of money. The reason: Novartis has been committed to the common good for decades with several foundations and sponsoring activities. Novartis supports initiatives and projects in the areas of research, humanitarian emergency aid, social welfare, culture and sport. The company does good for a reason: as a pharmaceutical manufacturer, Novartis is in a responsible position for society and is in the media spotlight. In 2000, the Group acknowledged its responsibility with regard to sustainability and corporate responsibility by joining the United NationsGlobal Compact. For example, Novartis improved access to medicines in poorer countries. According to its own figures, one billion malaria treatments have already been distributed at no profit. But how much of the profit flows into the Group's charitable foundations year after year and what exactly do they support? The Fundraiso research shows: These two questions are difficult to answer, as Novartis prefers to keep financial details to itself.

Sponsorship runs via "Novartis International AG"

What is clear: In the cultural sector, Novartis has long-standing sponsoring partnerships with renowned Swiss cultural institutions such as the Fondation Beyeler, the Kunsthaus Baselland and the Basel Museum Night and Theater Basel. Novartis is also one of the main sponsors of the Baloise Session. Novartis is also one of the main sponsors of FC Basel and the Starwings basketball team. In Central Switzerland, Novartis is involved with EV Zug as an official "health partner". Novartis also supports the junior sections of soccer clubs in the Basel region and running events. In the social sphere, Novartis supports institutions and initiatives that help disadvantaged people in a variety of ways. For example, Novartis makes donations to local charitable organizations, neighborhood meeting places, soup kitchens and contact points for parents, children and young people. Novartis is also an official partner of the Swiss Red Cross and Swisscontact, the Swiss Foundation for Technical Development Cooperation. Seraina Drews, program manager at Swisscontact in Zurich, writes: "Swisscontact does not receive any funds from Novartis foundations, but from Novartis International AG." According to Natalie Huser, Head of Museums in the Basel-Stadt Department of Culture, the same applies to the Basel Museum Night. Novartis International AG has its headquarters at Lichtstrasse 35 in Basel. According to the commercial register, its purpose is "the management of the Novartis Group and the provision of services, in particular administrative, financial, legal, technical and scientific advice."

Foundations also indirectly promote corporate goals

The focus of the Novartis Foundations' funding activities is usually on activities that are related to Novartis corporate objectives or are close to Novartis company sites. Andreas Cueni from Basel is an experienced fundraiser and former project manager at the Swiss Fundraising Association. Cueni says: "Newsletters and presentations show that Novartis also uses its foundations to support health projects in emerging countries that affect a large proportion of the population, such as eye or cardiovascular diseases. These projects are certainly not completely detached from the commercial interests of Novartis. Especially not when such projects take place in Vietnam, a country of 100 million people, or Brazil, a country of 250 million people." For those looking for money, this means the reverse: Anyone seeking support in these specialist areas and countries at least has an intact chance of being noticed or funded.

Access to Novartis funds is a hurdle race

However, fundraiser Andreas Cueni warns his colleagues against being overly optimistic and submitting half-baked, frivolous funding applications to Novartis foundations. He says: "If you want something from Novartis, you first have to delve into English documents, websites or existing Novartis offerings, such as the visitor pavilion with the interactive"Wonders of Medicine" exhibition." According to Cueni, it is also "not easy to get in touch with Novartis foundations at all." Funding usually requires a good connection to the team at the appropriate foundation. What's more, even sponsored institutions in the healthcare sector don't always want to be publicly associated with the Novartis Foundations. A fundraiser from a well-known hospital writes: "As a matter of principle, we are not keen to appear by name as a beneficiary of a pharmaceutical foundation." This example shows once again that both foundations and their beneficiaries value discretion. As a rule, they do not seek publicity and certainly not media attention.

Novartis opens up to the world of foundations in Basel

Nevertheless, Novartis is now opening up a little to the world of foundations and applicants: On August 29, 2023, for example, the Basel Foundation Day was held at the Novartis Campus.Michael Willi, Chief Communications Officer of host Novartis, presented the pharmaceutical company's various foundations at the event and spoke, among other things, about the support for the Institute of Molecular and Clinical Ophthalmology Basel (IOB). Its Co-Director Professor Hendrik Scholl explained the importance of this partnership at the Basel Foundation Day. The researcher sees having a strong partner as a positive thing. According to an article in the specialist journal "Philantropist", Hendrik Scholl said: "Of course we want to bring a drug onto the market." The "proximity of a cooperation" helps to achieve this. At the same time, however, "distance" is also needed. While he recognizes a successful balance between proximity and independence in research, he does not quite see this in "fundraising". Reading between the lines, this may mean that Anyone who wants and receives money from foundations is no longer completely independent and to some extent also supports the entrepreneurial agenda of a corporate foundation.

Novartis maintains several charitable foundations

But which foundations actually receive Novartis profits and how high are their assets? These questions remain unanswered despite inquiries at Novartis. One thing is clear: Novartis is involved with several charitable foundations worth millions. They are presumably among the more financially powerful players in the secretive Swiss foundation market. It is also clear that the Novartis Foundation (see: https://www.novartisfoundation.org), which was established in 1979, aims to promote the health and well-being of "underserved" population groups and, in particular, to create models that "make innovative healthcare and treatment solutions generally accessible". According to the foundation's website, which is only available in English, the foundation "focuses on the world's most pressing health issues: cardiovascular disease and health inequality." The foundation's aim is to create more "health equity" for as many people as possible.

Novartis Foundation wants to bring together public and private stakeholders

The foundation aims to mobilize and bring together the scientific community as well as public and private stakeholders. Over the past ten years, the foundation has focused on cardiovascular health in cities, the elimination of leprosy and malaria, and digital health. Joerg Reinhardt (67) is Chairman of the Board of Trustees of the Novartis Foundation. The German manager has been Chairman of the Board of Directors of Novartis Switzerland since 2013. He is also registered with the Novartis Research Foundation and the Novartis Foundation for Medical and Biological Research. Ann Aerts is currently Head of the Novartis Foundation. Good to know: The foundation website contains various examples of projects supported in the past and an informative list of partner organizations. According to Satoshi Jean-Paul Sugimoto, Director of External Communications Switzerland at Novartis, the foundation does not accept applications "from external parties for donations or support". Sugimoto says of the foundation's activities: "The activities of the Novartis Foundation focus on carrying out its own projects on global health in collaboration with government and scientific organizations, NGOs and partners from the private sector." There is therefore no application form or contact address on the website. Georg von Schnurbein is Professor of Foundation Management at the Faculty of Economics and Founding Director of the Center for Philanthropy Studies (CEPS) at the University of Basel. He writes to Fundraiso: "The large Novartis Foundation is very closely linked to the company's activities and has therefore not been tax-exempt for several years. The other foundations hardly appear in public." According to Novartis spokesperson Sugimoto, the purpose of the Novartis Research Foundation, which was established in 1989, is to "support and carry out scientific work and programs - especially high-risk projects in the high-tech sector - in the interests of Novartis". As there is little room for "unconventional and bold, untested ideas" in today's research funding, the Novartis Research Foundation supports "unusual project proposals" with its FreeNovation program. According to the Novartis website, the jury consists of a "high-caliber international jury." Examples of funded projects can be found on this website.

Novartis Foundation for Medical and Biological Research

The Novartis Foundation for Medical-Biological Research is a foundation established in Basel in 1943. The purpose of this foundation is to promote medical-biological science by providing financial support for research projects carried out at Swiss universities in the field of medicine and medically oriented biology/biochemistry. The foundation also finances a limited number of research fellowships abroad. According to Novartis spokesperson Satoshi Jean-Paul Sugimoto, there are two categories of research projects: "One is for established research groups and the other is for young researchers at the beginning of their academic careers. The projects that are funded must have nothing to do with Novartis products." According to Sugimoto, "all Swiss universities and the two technical universities are represented on the Foundation Board". Prof. Dr. Dr. Hans-Uwe Simon from Bern is Chairman of the Foundation Board. He is also Deputy Director of the Institute of Pharmacology at the University of Bern. According to Fundraiso, the foundation supported the USZ Foundation in 2020 and also the Eleonorenstiftung of the Zurich Children's Hospital (2019/2020). The requirements: Research projects must be carried out in Switzerland by members of a Swiss university or research institution. There are clear guidelines for funding applications.

Novartis Foundation for People and the Environment

The Novartis Foundation for People and the Environment was established in 1989 and is domiciled in Basel. The purpose of the foundation is to support charitable and scientific programs to promote human health and nutrition as well as the environment. The foundation can pursue its purpose through contributions to public and private institutions or in the form of its own programs. According to the commercial register, Matthias Leuenberger from Binningen is President of the Foundation. Leuenberger is no stranger to the business world: He is country president of Novartis Switzerland and president of the business association Scienceindustries (Chemistry Pharma Life Sciences) and also vice president of the business umbrella organization "economiesuisse". The foundation does not have an informative website, making it difficult for fundraisers to find out which projects it actually supports. Fundraiser Andreas Cueni from Basel says: "The largest Novartis Foundation is probably the one for people and the environment. At least that's what emerged from a presentation by Michael Willi, Chief Communications Officer of Novartis, at the Basel Foundation Day." Novartis spokesperson Sugimoto writes to Fundraiso: "We do not provide any information on the amount of contributions or the recipients. Within the scope of the foundation's purpose, only charitable projects or other charitable foundations are regularly supported." Applications for support can be sent to the following address Novartis Foundation for People and the Environment, c/o Novartis International AG, Lichtstrasse 35, 4056 Basel.

Novartis Foundations for "Management Training" and "Education and Training"

The Novartis Foundation for Management Training is a foundation established in 2002. Its purpose is to train Novartis management and promote dialog between Novartis and its environment, in particular its associates. According to Novartis spokesman Sugiomto, the foundation is "a classic corporate foundation without a charitable character. No applications for donations or support from third parties can be submitted here." The Foundation for Education and Training is also only aimed at a very limited circle of third parties. In addition to Novartis associates, it also supports their children, including stepchildren, adopted children and foster children. The same applies to children of retired associates. These third parties can apply for financial support for state education after compulsory schooling, provided that one parent is a Novartis employee or retiree.

Conclusion: The hurdles for fundraisers and researchers looking for money are generally high at Novartis: people and organizations with a clear connection to Novartis topics and company headquarters should at least have a chance of receiving funding. Those who also manage to establish personal contacts with foundation members will certainly have an easier time. If you follow the tips below, you are sure to be more successful in the application process. One consolation: as the "home canton" of Novartis, the canton of Basel is a foundation Mecca for those looking for money. With around 47 foundations per 10,000 inhabitants, the canton has by far the highest density of foundations in Switzerland. By comparison, the Swiss average is just 15.5 foundations. Education and research (22%), culture and leisure (21%) and social services (21%) are the most strongly represented areas of activity in the canton of Basel-Stadt. The assets of Basel's 916 charitable foundations currently amount to CHF 22.2 billion.

How fundraisers can obtain foundation funds

• Research: Fundraisers should obtain detailed information about Novartis foundations and their funding priorities to ensure that their project matches the foundation's objectives. And don't worry, there's a first time for everything: 69% of applications are first-time applications, according to the "Grantee Review Report 2019" by Swissfoundations.
• Application preparation: Applications should contain detailed information about the project, the need for funding and the expected results. It is important that you read the requirements and guidelines carefully before submitting an application and ensure that your application contains all the necessary information. The rule is: quality over quantity and "mass applications". Good to know: On average, applicants in Switzerland spend 32 hours preparing a foundation application. This is shown in the "Grantee Review Report 2019".
• Contact: If possible, fundraisers can contact the respective foundation directly to obtain further information about the application process. There are often contact options on the official websites of the foundations. If there are no direct contact options, you can try to get more information from the people on the foundation board (see Fundraiso entry).
• Application review: The foundations review the applications received and decide which projects they would like to support. The selection is usually based on compliance with the foundation's objectives, the quality of the project and the budget.
• Reporting: If the application is approved, fundraisers are often required to submit regular reports on the progress of their project to ensure that the funds are being used appropriately. During the funding phase, funded institutions in Switzerland spend an average of 31 hours on reporting.

Author: Bernhard Bircher-Suits, FundCom AG

Novartis Foundations at a glance

Foundation name	Web address	Profile on Fundraiso	Foundation purpose	Foundation assets	Previously funded projects/organizations	E-mail or telephone contact
Novartis Foundation	https://www.novartisfoundation.org/	view Novartis Foundation on fundraiso	The purpose of the foundation is to promote the health and well-being of underserved populations.	Approx. CHF 30 million	Link	No information
Novartis Forschungsstiftung	https://www.novartis.com/ch-de/medizin-neu-denken/forschungsfoerderung	view Novartis Forschungsstiftung on fundraiso	Support and implementation of scientific work and programmes - particularly high-risk projects in the high-tech sector - in the interests of the founder and its subsidiaries.	No information	Link	No information
Novartis Stiftung für medizinisch-biologische Forschung	http://www.stiftungmedbiol.novartis.com/	view Novartis Foundation for medical-biological Research on fundraiso	To promote the medical-biological sciences, primarily medical-biological research in Switzerland, from the proceeds of the foundation's assets.	Approx. CHF 10 million	Link	Tel. +41 61 696 38 61 und +41 79 204 77 05‍ [email protected]
Novartis Stiftung für Kaderausbildung	No website	view Novartis Stiftung für Kaderausbildung on fundraiso	Training of the founder's management and promotion of dialogue between the founder and her environment, in particular her employees.	No information	No information	No information
Novartis Stiftung für Mensch und Umwelt	https://www.novartis.com/ch-de/gesellschaft-und-umwelt	Novartis Stiftung für Mensch und Umwelt auf fundraiso ansehen	Supporting charitable and scientific programmes to promote human health, nutrition and the environment.	Approx. CHF 50 million	No information	Tel. +41 61 324 80 01