Philanthropy Now

Joanne M. Conroy, M.D., Chair
FAER Board of Directors

ost of us learned as children that sharing is a good thing. We just did not know we were practicing philanthropy. At its core, philanthropy is anything that represents a direct effort to help others, ideally without expectations of getting something in return. The size of the gift is not what characterizes a philanthropist. People in the lowest income brackets tend to donate as much or more than their higher-wage counterparts. However, we usually give to charities that assist causes that we believe are important and touch our lives, such as churches, hospitals and schools. We hope you will consider how research in anesthesiology has affected your practice and your life.

The Foundation for Anesthesia Education and Research’s (FAER’s) eligibility as a nonprofit is documented by the IRS under Internal Revenue Code 501(c)(3). This code includes groups whose purposes are charitable, educational, religious, scientific, literary or supporting national or international amateur sports competitions. Just because an organization has tax-exempt status, though, does not mean that your gifts will automatically be tax-deductible. Whether donations to a charity are tax-deductible is determined by its foundation status. Within these 501(c)(3) organizations, there are three basic designations:

• Public charity: A public charity receives a sizable part of its income from the public (broadly, not just from family and friends) or the government. This is defined under IRS codes 509(a)(1) through 509(a)(4). FAER is a 509(a)(3).

• Private foundation: A private foundation gets most of its income from investments and endowments and uses that money to award grants to other groups. This falls under IRS Code 509(a).

• Private operating foundation: A private operating foundation that donates most of its assets directly to the causes it represents rather than awarding grants to other charities. This falls under IRS Code 4942(j)(3).

Individuals who give to private charities, private operating foundations and certain private foundations are allowed to deduct donations that represent up to 50 percent of their adjusted gross income if they itemize on their federal tax returns. If you give to private foundations, you generally will be able to deduct up to 30 percent of your adjusted gross income. Corporations making contributions to 501(c)(3) organizations are allowed to deduct all contributions up to an amount typically equal to 10 percent of their taxable income. This applies without regard to foundation status.

Few nonprofits have seen a significant slowdown in contributions in fiscal year 2005, despite concerns about possible “donor fatigue” in the wake of the series of natural disasters around the world. Fundraisers said that they are expecting a number of larger donations over the next couple of months as donors take advantage of a new law, enacted after Hurricane Katrina, that allows taxpayers to write off 100 percent of donations that add up to their adjusted gross income and were made after August 28, 2005. Previously only 50 percent of a donor’s adjusted gross income was deductible.

We want to thank all of you who have responded generously to the ASA Gala Event and our direct-mail campaign, which will benefit the four Foundations: FAER, the Anesthesia Patient Safety Foundation, the Wood Library-Museum of Anesthesiology and the Anesthesia Foundation. The Gala Event will be rescheduled for the ASA 2006 Annual Meeting in Chicago. Every contributor will receive a letter over the next month outlining your options to:

• Apply the donation to Gala tickets for 2006 (with a specific 2005 tax-deductible portion);

• Donate the cost of the ticket to the four Foundations (which would be considered a 2005 charitable donation); or

• Receive a full refund.

Our recent more visible organized fundraising efforts are necessary for FAER because:

1. There still remain many unanswered research questions in anesthesiology.

2. Government funding is declining and affecting the development of young researchers.

3. The cost of everything continues to spiral upward.

In this season of giving, please consider a donation to support research in anesthesia. Since it also is an election year, both Democratic and Republican perspectives on philanthropy are represented below. Charity is truly bipartisan.

“But history will judge you, and as the years pass, you will ultimately judge yourself, in the extent to which you have used your gifts and talents to lighten and enrich the lives of your fellow men. In your hands lies the future of your world and the fulfillment of the best qualities of your own spirit.”

— Robert F. Kennedy (1925-1968)

“Some people give time, some money, some their skills and connections, some literally give their life’s blood. But everyone has something to give.”

— Barbara P. Bush