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NEW TAX RULING TO BENEFIT PHILANTHROPISTS AND MEDICAL RESEARCH

Announcement posted by Think HQ 08 Mar 2016

Australian non-profit organisation, AUSIMED, launches new Venture Philanthropy Fund (VPF) to support Australian medical research projects.

Australian non-profit organisation, AUSIMED, will launch a new Venture Philanthropy Fund (VPF) to support globally significant medical research projects later this month.

The new fund comes weeks after AUSiMED secured a new tax ruling enabling Public and Private Ancillary Funds (PAFs) to use their corpus to lend money at up to 16% interest for medical research, without risking the loss of the corpus.  

The unique VPF model provides a safety net to PAFs, by turning their loan, into a tax-deductible donation if medical research outcomes are unsuccessful. 

Over the next three years, the VPF aims to provide more than $3 million in funding, bringing together medical experts throughout Israel and Australia to undertake research into a portfolio of projects, including prostate cancer and heart disease.

Patron of AUSiMED, The Hon. Steve Bracks AC said the new funding model reinforces Australia’s focus on innovation, and highlights a renewed commitment to making international advances in medical research.

“The local and global impacts of this type of fund will significantly change and support the medical research field, which is experiencing considerable funding challenges in Australia.

I’ve seen the value of bilateral medical collaboration between Israel and Australia, and I am proud to be supporting the continued efforts of AUSiMED to leverage the strengths of two leading research nations in this innovative way,” said Mr Bracks.

CEO of AUSiMED, Roz Kaldor-Aroni is excited about the opportunities the new fund will provide for medical research and also for the philanthropic sector.

“We have created a new type of impact investing that offers above-market returns without risk to the corpus. The opportunity to either benefit from commercialisation success or to provide an enhanced grant, is a win-win situation and a valuable opportunity for PAFs interested in impact investing.

“Involving Israel in the research and potential commercialisation, will also be unique for Australian impact investing,” said Mrs Kaldor-Aroni.

Since 2012, AUSiMED has raised more than 1.2 million dollars to support research collaborations, visiting Fellowships and international symposia that have had significant impact on paediatric and adult health, in areas including breast and bowel cancer, and improving foetal survival.

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