July/August, 2001: "Planned Giving"

by Mike Bourland
American Football Coaches Foundation

Courtesy: AFCA
Release: 07/01/2001

Starting with this issue's article and continuing in upcoming issues of The Extra Point, we will discuss the various methods of Planned Giving which can assist The American Football Coaches Foundation (the "Foundation") to 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 similar methods.

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 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.

To meet the requirements of a publicly supported tax exempt charity, the Foundation must receive at least one-third (1/3) of its support from a broad range of donors, which includes AFCA member coaches. That is why your annual contribution is anticipated and crucial to the success of the Foundation. For every dollar given by an AFCA member coach, the Foundation can receive two additional dollars from a larger donor or donor foundation without endangering the Foundation's favorable publicly supported tax exempt status. As you are now familiar with this rule, you can see how every AFCA member coach's personal contribution is important to the Foundation's game plan, to solicit and receive gifts of contributions from wealthy individuals and their private foundations. With these types of gifts, the Foundation has funds that it can put to work immediately in support of the Foundation's goals.

One way for wealthy individuals to make a gift to the Foundation is by Will or through a 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.

While contributions from wealthy donors are needed, an individual donor's contribution in excess of two percent of total contributions received by the Foundation will not qualify in satisfying the Foundation's one-third public support test. That means that small contributions by a large number of donors are necessary to get the maximum benefit from the contributions of a small number of wealthy donors. Every dollar that a member coach contributes, and every dollar that is contributed because of your active support in involving a large segment of your community and school opens the door for maximum benefit from larger donations. The effect is circular: You raise money and awareness, and these contributions allow larger donations from a smaller group of large donors, including wealthy individuals and foundations. The result is the generation of significant revenue to the Foundation to aid the AFCA in achieving its goals.

It is not too late to acquire a stone for 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 will be 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 public. Have you planned fall fundraising events? Remember that the Foundation needs participation from every member coach in order to meet its goals.

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