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        <Explanation>IN JUNE 2006, THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) RELEASED FASB ASC 740-10, INCOME TAXES, THAT PROVIDES GUIDANCE FOR REPORTING UNCERTAINTY IN INCOME TAXES. FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011, THE ASSOCIATION HAS DOCUMENTED ITS CONSIDERATION OF FASB ASC 740-10 AND DETERMINED THAT NO MATERIAL UNCERTAIN TAX POSITIONS QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE FEDERAL FORM 990, RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX, IS SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE, GENERALLY FOR THREE YEARS AFTER IT IS FILED.</Explanation>
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          <AddressLine1>400 GARDEN CITY PLAZA STE 200</AddressLine1>
          <City>GARDEN CITY</City>
          <State>NY</State>
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          <State>ID</State>
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        <NamePerson>EUGENE D CASSEL</NamePerson>
        <Title>SPECIAL COUNSEL &amp; DIRECTOR</Title>
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        <NamePerson>DEBORAH HALES</NamePerson>
        <Title>DIRECTOR DIV. OF EDUCATION</Title>
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      <Form990ScheduleJPartII>
        <NamePerson>ANNELLE PRIMM</NamePerson>
        <Title>DIRECTOR OMNA</Title>
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        <NamePerson>REBECCA RINEHART</NamePerson>
        <Title>PUBLISHER</Title>
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      <Form990ScheduleJPartII>
        <NamePerson>WILLIAM NARROW</NamePerson>
        <Title>ASSOCIATE DIRECTOR - APIRE</Title>
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      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 6</ReturnReference>
        <Explanation>CLASSES OF MEMBERSHIP INCLUDE: MEDICAL STUDENTS, MEMBERS-IN-TRAINING, ASSOCIATE MEMBERS, GENERAL MEMBERS, FELLOWS, DISTINGUISHED LIFE MEMBERS, HONORARY MEMBERS, LIFE STATUS AND INTERNATIONAL STATUS MEMBERS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7A</ReturnReference>
        <Explanation>THE FOLLOWING CLASSES OF MEMBERS MAY PARTICIPATE IN THE ELECTION OF BOARD MEMBERS: MEMBERS-IN-TRAINING, GENERAL MEMBERS, FELLOWS, DISTINGUISHED LIFE MEMBERS, HONORARY MEMBERS AND LIFE STATUS MEMBERS. ALL OTHER MEMBERSHIP LEVELS ARE NON-VOTING.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7B</ReturnReference>
        <Explanation>THE ASSEMBLY MUST VOTE TO APPROVE POSITION STATEMENTS AND BYLAWS BEFORE A FINAL VOTE BY THE BOARD OF TRUSTEES.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>THE RETURN WAS PREPARED BY THE OUTSIDE ACCOUNTANTS AND REVIEWED BY THE ORGANIZATION'S SENIOR MANAGEMENT. A FINAL COPY OF THE 990 WAS SENT TO THE BOARD OF DIRECTORS BEFORE FILING.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>DIRECTORS ARE REQUIRED TO DISCLOSE INTERESTS AND AFFILIATIONS UPON APPOINTMENT AND THEN ANNUALLY OR AT ANY TIME THERE IS A CHANGE TO THEIR DISCLOSURE. ORAL DISCLOSURE OF INTERESTS AND AFFILIATIONS IS REQUIRED AT THE BEGINNING OF EACH MEETING. IF A POTENTIAL CONFLICT ARISES, THE CONFLICT OF INTEREST COMMITTEE REVIEWS AND REPORTS TO THE BOARD OF TRUSTEES WITH RECOMMENDED ACTION. STAFF MEMBERS ARE ALSO REQUIRED TO DISCLOSE POTENTIAL CONFLICTS ANNUALLY.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15A</ReturnReference>
        <Explanation>ALL STAFF ARE SUBJECT TO A MARKET-BASED COMPENSATION SYSTEM. A COMPREHENSIVE REVIEW WAS PERFORMED BY AN INDEPENDENT CONSULTANT TO ESTABLISH GRADES AND RANGES FOR ALL COMPENSATED STAFF POSITIONS. WITHIN THE DEFINED RANGES, APPROPRIATE ANNUAL INCREASES ARE MEASURED AGAINST THE LOCAL MARKET AND APPROVED BY THE BOARD AS PART OF THE BUDGET PROCESS. THE BOARD LAST REVIEWED THE EXECUTIVE DIRECTOR'S COMPENSATION IN AUGUST 2011. THE BOARD ANNUALLY REVIEWS HIS PERFORMANCE, WHICH HAPPENS EVERY JUNE. THE EXECUTIVE DIRECTOR SETS COMPENSATION FOR ALL OTHER EMPLOYEES.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 9:</ReturnReference>
        <Explanation>MINIMUM PENSION LIABILITY ADJUSTMENT -1,276,420.</Explanation>
      </GeneralExplanation>
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          <BusinessNameLine1>AMERICAN PSYCHIATRIC FOUNDATION INC</BusinessNameLine1>
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          <AddressLine1>1000 WILSON BLVD STE 1825</AddressLine1>
          <City>ARLINGTON</City>
          <State>VA</State>
          <ZIPCode>22209</ZIPCode>
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        <PrimaryActivities>FINANCIAL SUPPORT TO PSYCHIATRY PROFESSION</PrimaryActivities>
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          <State>VA</State>
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