The APA is moving to increase its advocacy and lobbying activities on behalf of its members and their patients. It has filed a request for rulings with the Internal Revenue Service that asks permission to reorganize APA by establishing a non-profit professional organization under Section 501(c)(6) of the tax code. APA now is classified 501(c)(3), organized exclusively for charitable, educational and scientific purposes.

In addition to strict limits on lobbying activity, the charitable classification bars APA from providing significant financial assistance to District Branches, and from sponsoring a political action committee. Most District Branches, national medical specialty societies and the AMA are classified 501(c)(6).

A response from the IRS is expected in December. The move requires approval by APA voting members in January 2000.

“The increasing involvement of government in our members professional lives and the strangling effects of managed care have outstripped the ability of the Association to lobby on behalf of members and patients under our restricted charitable tax classification," said Allan Tasman, M.D., APA President.

Establishment of a 501(c)(6) organization will have little effect on APA members and the benefits they receive, according to APA’s General Counsel. Members will continue to receive The American Journal of Psychiatry and Psychiatric News, and will continue to benefit from discounted registration at APA’s two annual meetings.

APA leaders say the change will have only a minor effect on the tax deductibility of dues payments for a majority of APA members. Most members will be able to deduct dues as a business expense, less the percentage APA spends on advocacy.

All APA members will automatically become members of the new 501(c)(6) organization. The present APA will continue to exist as a 501(c)(3) organization, fulfilling its scientific and educational mission, including control of American Psychiatric Press, Inc., the American Psychiatric Foundation and the new American Psychiatric Institute for Research and Education. Amendments to the bylaws of the present APA have been prepared to reflect the changes.

The voting members must approve these amended bylaws before the new 501(c)(6) organization can be activated. The issue will be part of the 2000 election ballot members receive in January. The present bylaws require that at least 1/3 of voting members vote on the issue, and of those, 2/3 must vote in favor. If approved, the reorganization will be complete December 31, 2000.