Morgan Stanley will let its clients use funds determined by their donors

Morgan Stanley is launching a new program that will allow clients to donate money to find treatments and cures for diseases.

The program, called Morgan Stanley GIFT Cures, began today along with a two-day conference that the financial services company is organizing.

All donations made to Morgan Stanley GIFT Caskets will be managed by a donor-advised fund to badist the Harrington Discovery Institute Mission.

The Harrington Discovery Institute in Cleveland, Ohio, is working to identify new research and approaches to drug development in academic institutions and turn these discoveries into treatments. It was created in 2012 with $ 50 million coming from the Harrington family, who are medical supply contractors.

The Morgan Stanley GIFT Cures program focuses on efforts to develop treatments for diseases such as Alzheimer's disease, cancer, cardiovascular disease, gastrointestinal diseases and immune disorders, among others. Clients may choose to support their efforts for a specific condition or for a larger ongoing research.

"Our clients will have the opportunity to be truly strategic with their philanthropy and generosity," said Melanie Schnoll Begun, Head of Philanthropy Management at Morgan Stanley.

Many clients generally choose to give hospitals or other health care organizations that have helped treat family members who have been affected by certain conditions, said Begun.

Now they can also make targeted donations to help find treatments for these diseases, she said.

"The reality is that there are many more diseases than drugs to treat them," said Dr. Jonathan Stamler, president of the Harrington Discovery Institute.

According to Stamler, there are about 10,000 categories of diseases, but only about 500 drugs treat them. About 200 to 300 new diseases are discovered each year.

"Hundreds of millions of people are suffering from diseases for which no treatment is available," Stamler said.

The new program comes at a time when fund strategies advised by donors are gaining popularity. Funds recommended by donors allow people to put the money that they intend to donate into one account. Contributions are eligible for a tax deduction the year they are made. However, individuals can leave money there until they designate a charitable or nonprofit organization.

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Contributions to donor-advised funds, as a percentage of total individual donations, rose to 10.2 percent, or $ 29.23 billion, in the United States in 2017, according to an annual report released in 2018 by the government. National Philanthropic Trust. Individual donations totaled $ 286.65 billion that year.

Funds advised by donors are expected to grow in popularity after the implementation of the Law on Tax Reduction and Job Creation. Because of the higher standard deduction under the new tax law, fewer people will be able to itemize their deductions, including charitable donations.

This can lead to more donors turning to a strategy called "grouping", which consists of making a lump sum donation in one year, then distributing the contributions to charities over several years.

Leading donors who have committed to donating most of their wealth through the Giving Pledge campaign could also inspire others to increase their donations. MacKenzie Bezos, novelist and ex-wife of Amazon's founder, Jeff Bezos, has recently joined this list. Facebook's operations director, Sheryl Sandberg, also signed and used donor-advised funds as part of its strategy.

The Morgan Stanley program is aimed at individuals and families with high net worth, family foundations and family offices.

Participating clients will also be able to collaborate with other donors by providing strategies and events.