In November 1975, all members received a letter outlining the need for our Association to seek long-term sources of financial support for our ever increasing educational, scientific and membership activities. Formerly, these came from annual dues or assessments. Income from an Endowment Fund would help to alleviate our chronic financial difficulties.
Our first restricted bequest of $67,031 came from the Ethel Spillsbury Liddle Estate in 1971 (now 34% of our endowment fund.) Several months ago a contribution of $1000 was made by Mrs. Henry J. Friendly to honor a major birthday of Marion Kenworthy. While we welcome such bequests from sources outside of our Association, we do not solicit them and the major source of long-term financial support must still come from our own members.
Gifts by outright cash, appreciated securities or property, gifts of life insurance, gifts with income returns, and annuity trusts or bequests in wills are some of the ways in which contributions can be made to support the Association and its programs. Such contributions could be used to honor members, recognize significant birthdays, and memorialize members by name, plenary meetings or special lectures. Such funds can be given for special educational, research or other Association activities. They can be used to help pay for low-cost psychoanalytic treatment or aid students in training. Of course, contributions may also be given without restriction.
Outrights gifts of cash are possibly the most popular form of philanthropic giving. These gifts are simple to handle, both from the donor's point of view and that of our Association. Under the new tax law, the ceiling on deductibility for gifts of money to most charities has been increased.
Within the past two decades, gifts of appreciated securities and property have become increasingly popular. At the time of the gift, the donor receives a deduction for the full present market value and is not taxed on the amount which would have been a capital gain.
Lifetime giving, while somewhat more complicated, can be carried out through participation in general Endowment Funds, personalized philanthropic funds in the name of the donor or by other plans that are available.
Perhaps the simplest and most painless way to support the Association and its programs is through a bequest in a will, which permits disposition of property at death. Such a bequest makes substantial savings possible because such a gift is deductible for Federal Estate Tax purposes and is free of State inheritance taxes. Since the gift is taken “off the top” of the estate, it reduces the amount of the estate subject to Federal tax.
Obviously, one does not have to be very wealthy to gain tax advantages from such contributions, deferred or outright. But if enough of our members become involved in such varied plans to endow the Association, the future financial needs of the A.Psa.A. will be insured.
The Newsletter wishes to acknowledge belatedly the essential contribution of the GAP Committee Report on The Effects of the Methods of Payment on Mental Health Care Practice and to Dr. Paul Chodoff for basic material used in the article on Third Party Payers by Dr. George Roark, Jr. in the December 1975 issue.