T. Denny Sanford donated $50 million to Burnham Institute for Medical Research.

The announcement today of a $50 million gift to the Burnham Institute for Medical Research will further expand the organization's cutting-edge research at Lake Nona's emerging "medical city" and help it weather the tough economy.

The donation by philanthropist and private equity investor T. Denny Sanford will also result in a name change for the bicoastal organization to the Sanford-Burnham Medical Research Institute.

"It's a landmark gift that builds on the $20 million Mr. Sanford donated to Burnham two years ago," said Dr. John C. Reed, president and CEO of Burnham, which was founded in the San Diego suburb of La Jolla in 1976 and opened a second operation at Lake Nona in south Orange County in 2009.

While Sanford's gift will help strengthen Burnham's $22.5 million endowment for both the institute's Central Florida and California operations, Reed said the donation will help the institute overcome potential state and federal funding cutbacks and give Burnham greater financial stability for growth.

"We were given by [land investment firm] Tavistock 50 acres of land for the Lake Nona site. We've only used a portion of that. We would in the future like to build more buildings and add to our research facility," said Reed. "This gift will allow us easier access to capital for future expansion."

The Sanford gift also serves as an official announcement of a $100 million capital campaign for Burnham, which last year had an annual operating budget of $150 million.

"I have had the opportunity to observe the incredible research being conducted by Burnham scientists," said Sanford, 74. "With this gift I have challenged others to join me in supporting this life-changing science."

Sanford, who spent the early part of his career in sales and marketing management, acquired and built the specialty chemical company Contech, selling it in 1982 and becoming a private equity investor. In 1986 he bought United National Bank in Sioux Falls, S.D., and later renamed it First Premier Bank. His philanthropy has included a $400 million gift to Sioux Valley Hospitals & Health System to create Sanford Health and a $20 million gift to the Burnham Institute to create the Sanford Children's Health Research Center.

Jim Jardon, one of the three Central Florida Burnham board members, said Sanford's gift will "prime the pump for greater philanthropic support from the Central Florida region."

"This gift comes at a perfect time," said Jardon, president and chief executive officer of JHT Inc., a computer-training and management company headquartered in Orlando's Central Florida Research Park. "During these tough economic times, not only are federal and state grants more competitive, philanthropic support is not as easy to come by."

Reed said a larger endowment provides additional funds for expenses not picked up by government grants from agencies such as the National Institutes of Health.

Among those expenses are hiring more researchers, providing bridge funding for faculty members who need temporary financial support until they can secure grants from other sources, and to acquire new technologies.

California Gov. Arnold Schwarzenegger praised Sanford for "his generous donations to this industry and to the Burnham Institute's cutting-edge research."

"Discoveries being made by our biomedical research community have already given millions help and hope, and I look forward to the life-enhancing results and new jobs created by this partnership," Schwarzenegger said.

Reed said Gov. Charlie Crist was also expected to comment on today's announcement, which will be made at Burnham's La Jolla location and carried by video at the Orlando campus.

Malin Burnham, whose own gift in 1996 helped turn his namesake institute into one of the fastest-growing research organizations in the country, welcomed Sanford's gift and challenge.

"These additional resources will help our scientists address many of the world's most devastating diseases faster, benefiting patients for years to come," Burnham said.

The Burnham Institute has established major research programs in cancer, neurodegeneration, diabetes and infectious, inflammatory and childhood diseases. It is especially known for its world-class capabilities in stem-cell research and drug discovery technologies.

Reed said the Sanford gift will also provide seed money for pilot projects that ultimately will help Burnham secure grants that are increasingly competitive.