NThe MeAntal HeRalth ResSearch AAssociaDtion Advancing research with three grant programs funding 718 scientists with $19 million Young Investigator Program in grants in 2006 supporting innovative research ideas of outstanding young scientists Independent Investigator Program building upon established scientific skills and unique investigative insights Distinguished Investigator Program facilitating breakthrough research by proven scientific leaders Accelerating discovery for illnesses such as in genetics, molecular biology, bioinformatics, schizophrenia; bipolar disorder; depression; brain imaging and better medications anxiety disorders; attention-deficit disorder; autism; eating disorders; and other childhood and adult disorders Leading the world with researchers in the United States and 25 other countries in charitable funding of research NARSAD’s mission is to promote human health through advancements in brain for mental health and behavior research leading to more effective treatments and cures. Annual Report 2006 Table of Contents About NARSAD Message from the President Page 1 Message from the President of the NARSAD: The Mental Health Research Association is the world’s Scientific Council 5 leading charity for research on mental illnesses. It funds innovative scientific research on the causes, treatment and prevention of a range Twenty Years of Advancing Research 6 of serious neuoropsychiatric disorders. New Scientific Council Members 7 From the time it began giving grants in 1987 as the National Alliance for Research on Schizophrenia and Depression, NARSAD had dis- Research Highlights 9 tributed through the end of 2006 nearly $200 million in research funds to 2,284 scientists in 347 institutions in the United States and 25 NARSAD’s Annual Prizes 12 other countries. NARSAD’s scope of funding now extends well — The Lieber Prize 13 beyond schizophrenia and depression to include bipolar disorder, — The Falcone Prize 14 anxiety disorders, and a range of childhood and adolescent disorders. — The Goldman-Rakic Prize 15 — The Ruane Prize 16 NARSAD’s research grant programs support the work of out- — The Sidney R. Baer, Jr. Prize 18 standing scientists based at universities, medical centers and other nonprofit medical research institutions worldwide. Our Young Report of the Executive Director 19 Investigator grants encourage innovative ideas by talented early- career scientists, including many who are just launching research. The Klerman/Freedman Awards 20 NARSAD’s Independent Investigator grants sustain the work of mid-career scientists who have established successful research NARSAD Mental Health Research Symposia programs and demonstrated unique investigative insights. The — New York City 21 Distinguished Investigator program facilitates breakthrough — Regional 23 research by leaders in the field. All research grants are reviewed and recommended by NARSAD’s distinguished 94-member NARSAD Community Outreach 26 Scientific Council. Research Partners Program 27 In recent years, NARSAD has become the major nongovernmental source of grants for psychiatric research at leading American 2006 Grant Programs 34 universities, including the University of California, Columbia, Harvard and Yale. • Every dollar donated to NARSAD goes NARSAD Grants in 2006 — Distinguished Investigators 36 NARSAD-funded research frequently leads to additional, major directly to funding research grants. — Independent Investigators 36 funding from the government and other private sources. In part — Second-Year this reflects NARSAD’s success in identifying worthy high-risk, • NARSAD receives no government funding. Independent Investigators 38 high-reward research projects at their earliest stages of development. — Young Investigators 40 The implications are well captured by Steven B. Hyman, provost • Charity Navigator and The American — Second-Year of Harvard University and a former director of the National Institute Institute of Philanthropy, leading evaluators Young Investigators 48 of Mental Health: of charitable organizations, have given NARSAD their highest ratings for NARSAD Contributors 54 “There is no organization in the United States doing financial efficiency. — Honor Tributes 66 a better job of dealing with the gap between our nation’s — Memorial Tributes 67 real and profound public health needs and our ability to fund research than NARSAD. What NARSAD Independent Auditors’ Report 69 traditionally has done is to fund young investigators — — Financial Statements 70 the source of our innovation and new ideas — in a really — Notes to Financial Statements 72 generous way.” Message from the President The year 2006 was a special one for NARSAD. It marked the 20th anniversary of the formation of our Scientific Council and its initiation of our research programs. The year was also marked by major research achievements announced and published by many of our grantees, whose work moves us steadily toward our goal of “better treatments and cures for severe mental illnesses.” Our donor base is growing as evidenced by increased number of donors, contributions and endowment. In 2006, NARSAD raised $17.1 million from both new and loyal donors and earned $1.4 million of investment income from its growing endowment. The cumulative amount of funds raised by NARSAD, including special grants designated to cover our entire administrative and overhead expenses, has totaled $222 million since our inception in 1987. NARSAD continues its long-term relationship with two family foundations that have generously committed to underwriting these expenses. Through 2006, NARSAD provided nearly $200 million for 2,948 research grants to 2,284 scientists at 347 universities and medical research institutions in the United States and worldwide. Research Grant Awards In 2006, NARSAD provided $19 million in new research grant funding. The highly selective process employed by the 1 Scientific Council in awarding research grants resulted in only 23 percent of the applicants receiving funding. There were 20 Distinguished Investigator grants provided to leading-edge researchers in a variety of disciplines, including some of the most widely recognized, innovative thinkers in psychiatric and neuroscience research. Each received $100,000 for their special research projects over one year. The Young Investigator program, which we initiated in 1987, awarded grants to 206 early-career scientists, each receiving one- or two-year grants of $30,000 and $60,000 respec- tively, to enhance their research and accelerate their careers. New grants were also awarded to 46 scientists in the Independent Investigator program, each of whom received $100,000 for a two-year period. Additionally, Young and Independent Investigators from 2005 who were in the second year of their NARSAD research projects received ongoing support. Research Leverage A vital result of NARSAD grants is their role as a catalyst for new research programs. Year after year, NARSAD grantees report that the scientific work accomplished with funding they receive from NARSAD leads to new, often larger grants. In 2006, NARSAD initiated a new survey of such subsequent grants received by NARSAD investigators. Data from the 20 percent of grantees who responded showed that they received subsequent new grant funding equal to 19 times the amount of their original NARSAD grants. In financial terms, this is exceptional leverage, suggesting that NARSAD provides the basis for new and larger research programs. Honoring the Scientific Council NARSAD’s board of directors and supporters honored our Scientific Council’s 20th anniversary as a special component of our annual New York gala in October. The Council, a group of leading scientists covering the broad spectrum of psychiatric and neuroscience research, has provided the grant-making strategies and grantee selection and review process at the core of NARSAD’s achievements. Each of the 94 members of the Scientific Council is a volunteer, generously devoting time and effort to identifyng the most promising research projects. Beginning as a small group in 1986, the Scientific Council has frequently elected new members in order to meet the challenges of fast-developing science and new technologies. In 2006, six new members were added to the Council: Robert W. Buchanan, M.D.; Peter Buckley, M.D.; B. J. Casey, Ph.D.; Richard Keefe, Ph.D.; Godfrey D. Pearlson, M.D.; and Pasko Rakic, M.D., Ph.D. These new members add luster to the Council, which has included three Nobel Prize winners, Eric Kandel, M.D., Paul Greengard, Ph.D., and the late Julius Axelrod, Ph.D., as well as four former directors of the National Institute of Mental Health, among whom is the president of our Scientific Council, Herbert Pardes, M.D. The current NIMH director, Thomas Insel, M.D., previously served on the Council before being appointed to his NIMH post. Thirty-five Scientific Council members, each wearing a ribbon and medallion of honor, joined the 20th anniversary celebration, providing a dramatic moment as they entered the ballroom together to the music of Handel sung by mem- bers of “Sing for Hope,” an extraordinary group of professional musicians that frequently performs for charity events. Growing Donor Base Broadening NARSAD’s base of support remained a key concentration throughout the year. We accelerated this effort through new fund-raising events, our publications, increased public participation in our annual schedule of regional events and our websites — all creating a major impact. There were two additions to our events