FY 2013 Financial Report
This year-end financial report from the Multidisciplinary Association for Psychedelic Studies (MAPS) is a key element of our commitment to transparency and clear communications about our finances.This report depicts our year-long focus on strategically and efficiently leveraging resources that our donors have so generously empowered us to use towards realizing our shared mission of transforming psychedelics and marijuana into FDA-approved prescription medications. The medicalization of psychedelics and marijuana is an essential part of our larger mission to facilitate the mainstreaming of psychedelics into our culture for a wide range of beneficial uses with associated harm reduction practices.
As I write this report, we’ve just completed an independent audit of our financial information for the third year in a row. These audits are part of a concerted effort to raise funds from major foundations and government agencies, both of which require such audits.The audits are also helpful for individual donors and family foundations that feel more comfortable knowing that MAPS’ books are independently audited. In FY 2013–14, and in the years to come, we must expand our sources of funding so we can generate the resources needed to complete our Phase 2 studies of MDMA-assisted psychotherapy for PTSD, to initiate and fund the Phase 3 multi-site MDMA/PTSD studies, and to fund our other research and educational activities. mainstreaming of psychedelics into our culture for a wide range of beneficial uses with associated harm reduction practices.
—Rick Doblin, Ph.D. mainstreaming of psychedelics into our culture for a wide range of beneficial uses with associated harm reduction practices.
View our Complete Audited Financial Statements for FY 2012-13
MAPS’ income in Fiscal Year 2012–13 was $2.4 million, expenses were $2.14 million, increase in net assets was $264,000, and total assets at year-end were $6.9 million. Of these assets, $5.5 million are in a Board Restricted Fund.This Fund was created last year, from a bequest received from the estate of Board member Ashawna Hailey. We restricted $200,000 as funding of last resort for a study of MDMA for the treatment of social anxiety in adults on the autism spectrum, with the balance ($5.3 million) restricted to our Phase 3 studies of MDMA-assisted psychotherapy for PTSD. We restricted most of Ashawna’s bequest to Phase 3 MDMA/PTSD studies in order to lever- age the bequest to help raise the additional $11 million of the estimated $16 million that will be required for Phase 3.With such a substantial percent of the Phase 3 budget already in hand, there is an increased likelihood that we will be able to motivate donors to fund the remaining costs since reaching the goal isn’t so intimidating. In addition, reserving $5.3 million of Ashawna’s bequest for Phase 3 should make it easier for MAPS to raise the roughly $2.5 million estimated to complete Phase 2 since we have increased our ability to fully fund Phase 3.
We began FY 2012–13 with a budget projecting that we would spend almost half a million dollars more than we knew we could raise from existing sources. Nevertheless, we decided that it was essential to go full speed ahead with our research and we were willing to draw down much of our unrestricted reserves. However, through a series of fortuitous events, we managed to end FY 2012–13 in the black and raised $264,000 more than we spent.
Among the leading reasons for this remarkable outcome in FY 2012–13 are that: Peter Lewis donated $402,000 to MAPS, almost double his gift of the prior fiscal year; Joby Pritzker donated $200,000, twice what we had estimated; we earned over $130,000 from the Psychedelic Science Conference when we’d estimated a break-even; we obtained over $100,000 from first time major donors; and we invested Ashawna’s bequest with the San Francisco Foundation which increased our assets in value by about $246,000. Finally, and the only unfortunate aspect to this financial surplus, is that a substantial amount of research expenses were delayed due to slower than anticipated approvals from regulatory agencies. These anticipated expenses will be incurred in future years. At the time I’m writing this report, we’ve obtained all the regulatory approvals we’ve been seeking for our international series of Phase 2 MDMA/PTSD pilot studies. We’re projecting MDMA-related research direct expenditures for FY 2013–14 of about $1.3 million, almost double our FY 2012–13 expenditures.
MAPS’ total income for FY 2012–13 was $2.4 million, of which $1,544,535 (64%), was contributed support. MAPS received $1,272,777, from 22 individuals and family foundations giving $9,000 or more, and $118,944 from 47 donors giving between $1,000 and $10,000. An additional $92,373 was received from 1,145 individuals giving under $1,000.These donations of less than $1,000 are a crucial part of MAPS’ success—they help us cover our operational expenses, are part of building the MAPS community, lead to word-of-mouth contacts with new donors, and are the way donors began to get to know MAPS by enabling them to evaluate our work before they make a larger gift. In addition, $60,441, worth of auction items, professional time, and event venues were donated to help MAPS’ fundraising and clinical activities.
Sales of books, art, clothes and other items totaled $73,649. Event Income of $541,804 is from all our events this year, primarily from the Psychedelic Science Conference. For all events, income sources are: $506,227 tickets; $10,929 commission on art sales; $4,775 vendor fees, and $15,775 auction income. Total Psychedelic Science Conference revenue was $589,298, from these sources, plus sponsorships and other miscellaneous income. Investment income includes $246,558, net of fees, from our assets invested at the San Francisco Foundation. Our fiscal sponsorship revenue of $23,546 is re-granted to the groups that raise the funds, minus a small administrative fee.
MAPS’ expenses in Fiscal Year 2012–13, totaled $2.14 million. 37% was spent on research; 35% on education, including the Psychedelic Science Conference; 20% was management and general operations; and 8% was spent on the cost of fundraising.
Research is MAPS' primary activity. Our focus has been, and will continue to be, on our MDMA Research ($796,107). Our four main studies for MDMA-assisted psychotherapy for the treatment of PTSD take place in Vancouver, Canada; Beer Yaakov, Israel; Boulder, Colorado; and Charleston, South Carolina. Over half our expenses for these studies are for personnel. These include MAPS internal staff: the clinical director, research associates, information specialists, data coordinators, and statistical analysis. Site staff includes the principal and co-investigators, independent raters, overnight physicians, attendants, and study coordinators. In our Veterans study ($262,555 in FY 2012–13), staff and contractors fees are 64% of the expenses. Other significant expenses are for subject travel and lodging (18%), and facilities (13%). Most studies follow a similar pattern.
In addition to the direct study expenses, we had MDMA study-related program expenses including the staff costs of video data storage and streaming systems development, budgeting, contracting, and meetings ($49,216), the costs of developing the treatment manual ($10,260), the training of therapists ($8,166), and blinded therapist adherence training ($4,829). We also have the costs of MDMA study-related supervision of therapists, presentation of our data at conferences, and speaking to the media ($68,859).
Our Clinical Research General costs ($89,448) are primarily staff costs related to developing the infrastructure needed for our clinical trials, including work with communications and fundraising departments, staff professional development and conferences, and video streaming and statistical software.The clinical research general expenses are related to our various MDMA studies.
Expenses in FY 2012–13 for ibogaine research were dedicated to finalizing our studies in Mexico ($7,653), and New Zealand ($2,914). FY 2012–13 LSD expenses ($26,294) were used to complete the study. In FY 2013–14 we will publish our LSD end of life article in a peer-reviewed journal, and develop a protocol for LSD and creativity. Our Marijuana/PTSD study is still in the protocol approval process. FY 2012–13 funds ($6,214) were used to obtain FDA and IRB approval, and FY2013–14 funds ($2,000) will be used to continue our work to secure marijuana from the National Institute on Drug Abuse (NIDA).
Education ($728,829) expenses include events, and publications and communications programs. Events expense ($505,834) includes the Psychedelic Science Conference, our largest non-clinical activity for the year, held in April 2013 ($445,743 in FY 2012–13). Over 1,900 people attended the conference and associated events, which presented over 100 speakers from more than 30 countries. Our Zendo Project psychedelic harm reduction program ($28,727) offered services at festivals in the Black Rock Desert, Nevada; at BOOM in Portugal; AfrikaBurn, South Africa; and Envision, Costa Rica; and produced a Harm Reduction manual, available for free on the MAPS website. In addition, MAPS staff attended more than 18 events that others produced, and provided speakers, exhibits, sales of books and MAPS bulletins, and free distribution of clinical protocols, and articles from peer-reviewed journals.
Publications ($222,995) included three editions of the Bulletin, the development and management of our comprehensive website on psychedelic research, the writing and distribution of 12 monthly e-newsletters, and the implementation of spirited public relations campaigns that share current research on psychedelics and marijuana with TV, print and online journalists internationally. MAPS also published two books, Claudio Naranjo’s The Healing Journey, and Torsten Passie’s Healing with Entactogens.
Our Fiscal Sponsorship program ($23,702) provided fundraising assistance to organizations that are in close alignment with our mission and values, including: Bluelight,Yawanawa ayahuasca project, WAMM, and the Temple of Whollyness at Burning Man 2013.
Fundraising costs are primarily for staff, direct mail, donor research and database costs, MAPS produced events, and travel and lodg- ing for individual donor visits. Operations are the unglamorous but necessary unallocated expenses of staffing, occupancy, taxes, fees, ac- counting, information technology, equipment, supplies, and postage.
For a complete discussion of MAPS' 2012-2013 fiscal year see our Winter 2013 Annual Financial Report.
MAPS faces a major fundraising challenge in FY 2013–14 and beyond. Although our revenue has grown over the last few years, our clinical expenses may outpace our fundraising for the first time. We have all the regulatory approvals required for our MDMA/PTSD studies in Israel, Canada, and two in the US. We’re predicting that we may more than double our MDMA/PTSD research expenses to an estimated $1.3 million of direct expenses in FY 2013–14. At the start of FY 2013–14, we estimate that we need about $750,000 in new revenue in order to breakeven. With the success of our research, our financial needs to develop MDMA-assisted psychotherapy into a prescription medicine in the treatment of PTSD will keep increasing.
Nevertheless, MAPS’ fundraising goals for FY 2013–14 are attainable.The need for research into the healing potential of psychedelics is profound, we are building a track record of success, and interest in our work is growing.
MAPS’ mission has always been ambitious. As you contemplate your charitable donations, we offer this detailed report on our income and expenses so you can see exactly where our money comes in and where it goes. Please consider making a generous donation and mentioning MAPS in your will. What was once forbidden, even for research, is now being studied and will, with your help, become an accepted and mainstream option for healing, inspiration, and spirituality.