On the ballot for APA’s 2000 election, members are being asked to vote in favor of a proposal vitally important to APA’s future: the corporate reorganization of APA as a 501(c)(6) membership organization. APA is currently a 501(c)(3) organization.

While such a change seems minor on paper, it will have a significant impact on the activities that APA carries out on behalf of its members and their patients and its ability to educate the public about mental illness. Moreover, the change will help APA strengthen its district branches by providing funds and technical assistance to carry out their advocacy mission.

That APA be able to provide such assistance is particularly important now in light of the many legislative and regulatory battles affecting the care of the mentally ill and the psychiatric profession that are now occurring at the state as well as the federal level.

"Our present tax classification places strict limits on the resources we can devote to government relations, public education, and direct support to our district branches," said APA President Allan Tasman, M.D. "The only way to overcome these restrictions is through a corporate reorganization."

With its current tax status, APA is out of step among professional membership organizations. Nearly all medical specialty associations, including 65 of APA’s 75 district branches, have 501(c)(6) tax status.

An integral part of the reorganization plan is an expansion of APA’s educational and research activities, which have been its backbone since its founding in 1844. These activities will be housed in a 501(c)(3) corporation, which will retain APA’s current charitable tax status.

The vote on the reorganization proposal comes two years after careful exploration and planning by APA. For the proposal to pass, one-third of APA’s voting members must vote on the issue, and of these, two-thirds must vote in favor.

The reorganization itself, however, will be nearly invisible to APA members. Members will receive the same benefits they do now under the present APA structure. They will continue to receive the American Journal of Psychiatry and Psychiatric News, get discounted registration for the annual meeting, and participate in such APA-sponsored benefits as the Professional Liability Insurance Program and Legal Consultation Plan.

One change, however, is that members will no longer be able to deduct national dues as a charitable expense, but they will be able to deduct them as a business expense (if otherwise eligible to do so), less the percentage of the APA budget spent on lobbying activities. For example, if the "new" 501(c)(6) annual budget is $20 million and $1 million of that is spent on lobbying, then 5 percent of national dues would be nondeductible. Members paying national dues at the $500 rate could deduct $475. The percentage attributable to lobbying is predicted to be modest.

The ballots for APA’s 2000 election were mailed to all voting members on January 5. Those who have not yet received their ballot should contact Carol Lewis by phone at (202) 682-6063 or by e-mail at clewis@psych.org. Completed ballots must be received at Intelliscan Inc. (not APA) on or before February 22.