May/June, 2001: "Planned Giving to The Foundation Beneficial to All"

by Mike Bourland
American Football Coaches Foundation

Courtesy: AFCA
Release: 05/01/2001

By now you are familiar with how the American Football Coaches Foundation (the "Foundation") functions as a Special Team of the AFCA, and how it is important that you help the Foundation accomplish its goal to provide financial support for the educational vision and purposes of the AFCA. The goals of the Foundation are to provide funding for the education of American football coaches to better serve the public through role modeling and character development for AFCA member-coaches, and the promotion and enhancement of the coaches' technical skills and coaching capabilities. The AFCA now has a new home in Waco. On a recent tour of the new headquarters, I was able to observe first-hand how the AFCA is striving to serve the educational needs of its member-coaches through a state-of-the-art facility.

In this article, we will continue to discuss how AFCA-member coaches can contribute to the achievement of the Foundation goals. In the June/July issue of The Extra Point, we began a discussion of the various methods of Planned Giving, which can help the Foundation meet its fundraising goals. Planned Giving is the structured and pre-planned aspect of charitable giving. It is charitable giving through Wills, Living Trusts, life insurance and other methods.

The AFCA is a tax-exempt trade organization. Contributions to the AFCA do not qualify for an income tax charitable deduction to the donor. The Foundation is a publicly supported, tax-exempt charity. Contributions to the Foundation qualify for an income tax charitable deduction to the donor. Revenue generation activities of the Foundation should be structured to maintain its publicly supported, tax-exempt charity status. The Foundation has received an advance ruling from the IRS that it qualifies as a publicly supported, tax-exempt charity. This "advance ruling" period will expire December 31, 2002. At that time, the Foundation must demonstrate to the IRS that it has met the requirements of a publicly supported, tax-exempt charity during the past four years. In order for the Foundation to demonstrate that it has met these requirements, it must receive support from a broad number of individual donors. Additionally, large donations from private family foundations and wealthy families are also necessary to the accomplishment of Foundation goals.

The ability of the Foundation to accept large donations from foundations and wealthy families while still maintaining its favored tax exempt, publicly supported status 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. Further, 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.

In our last article, we discussed how individuals may make a gift to the Foundation through the Planned Giving vehicles Will and Living Trust. Through these methods of giving, the donor names the Foundation as a beneficiary in his or her Will that results in the transfer of property to the Foundation upon the donor's death. In a Living Trust, the donor transfers property in trust, solely for the benefit of the donor during the donor's life, and at the donor's death, the property passes to the Foundation. Because the Foundation is a publicly supported, tax-exempt charity, the estate of the donor receives an estate tax charitable deduction for the value of the property passing to the Foundation at the donor's death under a Will or through a Living Trust.

Another method of Planned Giving is to name the Foundation as a beneficiary of a life insurance policy. Using this method of gifting, the donor designates the Foundation as the beneficiary of a life insurance policy on his or her life. The Foundation could be the primary beneficiary, or it could be a contingent beneficiary, in case the primary beneficiary is no longer alive, or if the primary beneficiary chooses to refuse to accept his or her interest in the policy proceeds in favor of the Foundation. At the donor's death, the Foundation receives the proceeds of the insurance policy, and the donor's estate receives an estate tax charitable deduction for the value of the proceeds passing to the Foundation.

In order for the Foundation's Planned Giving program of large gifts to be successful while maintaining the Foundation's favorable tax exempt status, the Foundation must continue to receive contributions from AFCA member-coaches. A wonderful way for a member-coach to give is to acquire a stone in the new Plaza of Influence. The Plaza of Influence presents a tremendous method for AFCA member-coaches, as well as the general public, to prominently honor a special football coach and to make a contribution to the Foundation. The Plaza of Influence is a stone-lined plaza located at the AFCA facility. For a contribution to the Foundation of $200 you, or anyone within your sphere of influence, can have an inscription for, as well as a brief salute regarding, a special football coach imprinted on a stone. The stone honoring this special football coach will be used in the construction of the Plaza of Influence and will become a permanent focal point of the new AFCA facility. Payment for each stone will be treated as a contribution to the Foundation and will be income tax-deductible to the donor.

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. Have you acquired (or encouraged others to acquire) a stone in the Plaza of Influence? Each acquired stone will result in a $200 contribution and help the Foundation demonstrate to the IRS that it has received the required support from the general public. Have you planned fundraising events? Remember that the Foundation needs participation from every member coach in order to meet its goals. Please be a part of the AFCA Special Team.

Return to Giving Opportunities

“Coach George Smith is not only an influence on young people, but the influence is multiplied many times in the beliefs of the young people he helped mold into amazing human beings. George is an outstanding coach, but more importantly, he is an outstanding gentleman.” —Tina Jones, Principal of St. Thomas Aquinas High School