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78

The cutback in federal support for culture and the arts is resulting in far keener competition across the nation for private support.  As a result, the have been two test mailings in a direct mail campaign to encourage planned giving to the Smithsonian through charitable remainder trusts, and in FY 1983 a new development brochure will be prepared.

In the absence of a successful government policy encouraging corporate and individual economic progress, it can be expected that gifts and grants to the Institution will become increasingly difficult to achieve, particularly in the corporate area, where competition for local community support as well as national demands is very intense.

[[underlined]] Smithsonian Magazine [[/underlined]].  Although the Magazine's management is justifiably cautious about the ebb and flow of fashion in publishing, it also expects that the demand for its product will remain strong, with an annual financial surplus estimated at $6,000,000 to $7,000,000 over the next few year.  It is primarily from these funds that the Board of Regents has been able to budget for the $2,000,000 to $2,500,000 program for acquisitions, scholarly studies and educational outreach projects, to fund certain expenses previously met with federal appropriations, and to set aside sums each year for the enhancement of the Institution's endowment.  The Magazine will continue to produce a high quality product and to be supported entirely by the trust revenues which it generates.  New growth in subscribers is expected to average 25,000 a year from the present level of about 1,900,000.  If required because of inflationary cost increases associated with production and mailing, subscription rates may increase in future years.

[[underlined]] Associates Program Resource Growth [[/underlined]]
Unrestricted trust operations for this group of activities are expected to increase from present levels of revenues generated by about $132,000,000 and expenses are projected to increase about $31,000,000.  The resulting growth over FY 1982 in the net funds expected to be available for application to various activities and programs of the Institution is about $1,000,000.