by Mike Bourland
American Football Coaches Foundation
Courtesy: AFCA
Release: 01/01/2001
In the last several issues of The Extra Point, it has been the purpose of this article to introduce you to the American Football Coaches Foundation ("the Foundation"), demonstrate how it functions as a Special Team of the AFCA, and encourage you to help the Foundation in its goal to provide financial support for the educational vision and purposes of the AFCA.
As you know, the Pigskin and Kickoff Classic games have been eliminated by the NCAA after 2002. The AFCA received a significant portion of its funding through these pre-season games, and would like to find a way to replace this critical loss in funding without raising membership fees. It is very important to the AFCA to maintain membership dues at the current level, which includes registration at the annual convention and a subscription to The Extra Point for no additional cost to you. Those of you who attended the annual convention in January can appreciate the value of your membership dues, and those of you who were unable to attend should know that it is the goal of the AFCA to continue to provide the annual convention as a benefit of your annual membership so that you can enjoy this educational benefit in the future. The annual convention is intended to be a valuable educational resource to member-coaches. It is also great forum to meet other coaches and to enhance your skills as a leader to your team and in your community. The Foundation needs your help in order to meet this fundraising goal of the AFCA.
The AFCA is not a charity in the eyes of the IRS and donations to the AFCA are not eligible for an income tax deduction to the donor. The Foundation was formed to accept donations and raise revenue for the AFCA to help accomplish its educational mission for football coaches of America. The Foundation has been granted preliminary approval as a publicly supported charity, so that contributions to the Foundation are income tax deductible to the donor. Because of IRS rules, these donations and revenue-generating activities are subject to certain limitations. In four years, the Foundation must demonstrate to the IRS that it has followed the rules related to maintaining this favorable tax status. That is why it is important that all AFCA member-coaches know and understand the basic rules of fundraising related to the Foundation.
By now you as an AFCA member should have received a donation pledge card from the Foundation. Have you returned your personal pledge or contribution? The AFCA has set a goal of $50 per AFCA member-coach as a contribution to the Foundation. Small donations are as important as large donations, because for every dollar given by a small donor (including AFCA member-coaches), the Foundation can receive two more dollars from a wealthy donor (during the donor's life or by Will) or donor foundation without endangering the Foundation's favorable publicly supported tax-exempt charity status. If you have returned your personal pledge or contribution, have you also encouraged your colleagues to do so? The ability of the Foundation to accept donations from large individual donors is dependent upon whether the Foundation receives support from a broad number of small individual donors (including member-coaches). The Foundation must receive one-third of its support from a broad cross-section of the general public in order to maintain its favorable tax status. Permissible contributions include donations from other public charities (including colleges and universities), so it is important that all members spread the word about the Foundation and its goal to support the educational purposes of the AFCA.
As the new year begins, please take this opportunity to plan fundraising events in your community, such as banquets and tournaments. Previous articles have explained the rules relating to banquets and tournaments, and the sale of sports memorabilia and merchandise through auctions and other methods. Proceeds from admissions, sales of merchandise, performance of services, or furnishing of facilities at an event are classified as "gross receipts" funds of the Foundation. Gross receipts funds should target a broad base of the community, as no single donor can provide more than 1 percent of the Foundation's total support through gross receipts and have it count as support from the general public. Also, care should be taken so that no fundraising activity becomes an ongoing business, or the Foundation will have unrelated business taxable income (UBTI) and will be penalized by the IRS.
With a basic understanding of the rules, please be out in your community raising funds and awareness for the Foundation. Are you spreading the word about the Foundation?
Until the Foundation is fully off the ground, your continued participation is encouraged and strategic. If you have thought of a particular fundraising method or activity, or have implemented one in your community, please let the Foundation know. Your story might be featured in a future column. With the proper use of our line-up (the Foundation) in implementing our game plan (providing funds to further the educational vision and purpose of the AFCA): the AFCA and the Foundation replace and enhance revenue, donors will receive income tax deductions for gifts to the Foundation, and AFCA and the Foundation will meet their goals.
