FINANCIAL SUPPORT
PCSAS's operating budget of about $280,000 annually is modest when compared to the budgets of other such agencies. Nevertheless, generating financial support for this start-up system presents a challenge. Even before any revenue is collected, there are expenses that must be covered—for administrative personnel; for the travel costs associated with Board of Directors' meetings and with the Review Committee's meetings to evaluate accreditation applications; for the cost of site visits to applicant programs; and for basic overhead costs of operating the corporation (click here for PCSAS's annual budget).
Yet, during the initial start-up, PCSAS cannot possibly generate enough revenue from its accreditation activities alone to cover these costs. It will take time to build a sufficiently large portfolio of accredited programs to generate the money to pay the bills. This means that initially PCSAS must depend on the generous underwriting support of educational institutions, individuals, corporations, and granting agencies to meet its budget goals. Thus, PCSAS has launched active fundraising campaigns on four fronts, each aimed at garnering financial help from those who share PCSAS's values and support its mission. The four fundraising campaigns are these:
1. Founders' Circle Fund: For Universities. PCSAS invites all universities sympathetic to the organization's mission of advancing public health through the promotion of science-centered education and training in clinical psychology to join the PCSAS Founders' Circle by contributing to the Founders' Fund.
The Founders' Fund represents a "pay forward" approach to building a financial foundation for PCSAS over the five-year start-up period. To become a member of the Founders' Circle, a university is asked to pledge $15,000 per year for five years to the Founders' Fund. If at least 17 universities join the Founders' Circle, this will yield at least $255,000 annually. Added to the existing financial support from the Academy of Psychological Clinical Science (PCSAS's parent organization) and the Association for Psychological Science (APS), the Founders' Fund will provide the necessary resources to meet PCSAS's estimated annual operating budget.
To date, these pioneering universities have pledged financial underwriting support for PCSAS:
Harvard University
Indiana University
Northwestern University
Stony Brook University
The Ohio State University
University of Arizona
University of Delaware
University of Illinois--U/C
University of Kentucky
University of Missouri
University of Pennsylvania
University of Southern California
University of Wisconsin
Washington University in St. Louis
A number of other universities are at various stages in the process of securing pledges of support for PCSAS and the Founders' Fund. As new pledges are received, the list of Founders' Circle Members will be updated. Pledges to join the Founders' Circle are critical to the ultimate success of PCSAS. As of June 1, 2009, PCSAS began accepting applications for accreditation, and the first round of accreditation reviews was held in November 2009. Therefore the importance of securing such pledges is increasing. Now is the time for science oriented universities to step up and provide financial support to PCSAS.
FAQs ABOUT THE FOUNDERS' CIRCLE FUND: Here are some common questions about the Founders' Fund
Q. Why should a university care about PCSAS and why should it consider contributing?
A: PCSAS's accreditation criteria, which differ from those of the APA system, are focused primarily on "outcomes"—i.e., the production of high quality clinical scientists—rather than on "inputs"—i.e., specific course requirements, number of practicum hours, etc. PCSAS's focus should liberate universities from arbitrary requirements, promote innovation, improve scholarly quality, and enhance public health. Moreover, PCSAS-accredited programs will be designated publicly as successful science-centered doctoral programs. As a result, these programs should benefit from being able to differentiate themselves from other types of doctoral programs in clinical psychology. This should help PCSAS-accredited programs attract the best science-oriented graduate students and faculty. Ultimately, the public at large should benefit from having improved access to top-quality mental and behavioral health care. (For an expanded summary of PCSAS's rationale and implications see Why Support PCSAS?.)
Q: How will the Founders' Fund be spent?
A: During the initial five-year start-up phase, these funds will go directly toward meeting PCSAS's annual budget, which should remain fairly stable over time, even as PCSAS's operating revenues should grow. Meanwhile, PCSAS will be working to establish a more permanent funding base by seeking gifts from patrons and benefactors, applying for grant support, and pursuing foundation support. The long-term goal is to build a $5M endowment, which not only should sustain PCSAS for the long haul, but also should help ensure the integrity of PCSAS's accreditation decisions by isolating them from the pressure to accredit more programs simply in order to raise operating funds.
Q: What do Founders' Circle members receive in return for contributing to the Fund?
A: Doctoral programs in psychological clinical science at universities that have joined the Founders' Circle will pay no initiation fees, application fees, site visitor expenses, or annual dues when they apply for PCSAS accreditation during their five years of contributing to the Founders' Fund. Of course, these contributions will not influence the PCSAS Review Committee's evaluations, as all applicant programs will be reviewed on the same basis. However, contributing universities will move to the head of the review queue when they apply for PCSAS accreditation. In addition, institutions in the Founders' Circle will be recognized publicly by PCSAS in appreciation for their pioneering support. Above all, Founders' Circle members will be able to take pride in knowing that they were leaders in the effort to advance public health through the promotion of science-centered doctoral education and training in clinical psychology.
Q: What if contributions to the Founders' Fund exceed the annual budget needs?
A: The excess would be refunded on a pro-rata basis to Founders' Funds members, if requested by the institutions. Otherwise, the excess would be put toward PCSAS's Endowment Fund, to help ensure the organization's long-term financial health.
Q: How will PCSAS support itself at the end of the five-year start-up period?
A: In addition to fees and dues, PCSAS will rely on gifts, grants, and foundation support. In addition, it is building an endowment to ensure its long-term viability.
Q: What if fundraising efforts fall short, either initially or in the long term?
A: PCSAS represents the best opportunity in our lifetime to create a new, science-centered accreditation system in clinical psychology aimed at reforming doctoral education and advancing public health. It cannot be allowed to fail. If necessary, PCSAS will continue to operate on the available funds until it succeeds.
Q: Will doctoral programs be forced to choose between APA and PCSAS accreditation?
A: Many programs are likely to choose to be dually accredited for some time—at least until PCSAS is well established. The two accreditation systems serve very different purposes, so they should be construed as complementary, rather than competitive.
Q: How does an institution pledge its support and join the Founders' Circle?
A: Typically, the process begins with the faculty of the clinical science program meeting to discuss its readiness to request support. The next step is for the program's leadership to ask for the department's backing. Finally, the program and departmental leaders would meet with the appropriate university administrator(s), present their case, and ask the university to pledge its support. If the university agrees, its pledge is documented in writing to avoid future misunderstandings, and the university transfers its pledged funds to PCSAS in the manner it considers most appropriate.
2. The Patrons' Fund: For Private Individuals and Personal Estates. Individual donors who share the values and goals of PCSAS and wish to offer financial support may contribute at whatever level their personal circumstances permit. Personal donations to PCSAS are tax deductible, within the limits of the current tax code. Donors who express a wish to remain anonymous may do so. Otherwise, PCSAS will publish an annual report in which it acknowledges donors and expresses its gratitude. The annual report recognizes five levels of contributions to the Patrons' Fund:
Crystal = donations up to $999.
Silver = donations from $1,000 to $2,499.
Gold = donations from $2,500 to $4,999.
Platinum = donations from $5,000 to $9,999.
Diamond = donations of $10,000 or more
Larger contributions to PCSAS would receive a distinctive recognition beyond these categories. All donations from private contributors or personal estates may be designated for use either to help underwrite PCSAS's annual operating expenses or to help build PCSAS's Endowment Fund. Potential patrons also are encouraged to consider making future donations by including PCSAS in their estate plan.
Contributions should be sent to PCSAS, 1133 15th Street, NW Suite 1000, Washington, DC 20005-2727. PCSAS gratefully acknowledges receiving the following contributions to the Patrons' Fund in 2009:
Crystal: Sarah Brookhart
Silver: Richard R. & Maris Bootzin
Gold: Robert F. Simons & Mary B. Graham; Richard M. & Kathleen J. McFall
Platinum: Alan G. Kraut & Jane A. Steinberg
3. Benefactors' Fund: For Corporations and Institutions. PCSAS also is eager to tell its story to the business community and other entities that may have an interest in contributing funds to the improvement of public health and to promoting science-centered education. These gifts may be eligible to be treated as tax deductible, within the applicable tax code and individual circumstances.
4. Grant Funds: Finally, PCSAS is pursuing possible grant support from federal agencies, from private foundations, and from other sources of grant support.
Summary: PCSAS must rely on a patchwork of funding sources for the resources it needs to cover its operating costs. Although it will generate increased revenue over time through its accreditation activities, it is unlikely that these funds alone will be sufficient to cover PCSAS's operating costs for quite some time. Thus, the Academy of Psychological Clinical Science has pledged to provide supplemental financial support, as has the Association for Psychological Science. In addition, universities and individuals already have begun to step forward with pledges of support. However, it is critical to the organization's long-term survival that it builds an endowment of sufficient size—e.g., $5M—to yield a return that will sustain the enterprise indefinitely. Financial support from institutions and individuals is critical to PCSAS's future success.
For additional information about PCSAS's finances, please contact Dick McFall, PCSAS Executive Director (rmmcfall@pcsas.org).