February, 2005: "The AFCF and Planned Giving - Another Look"

by Mike Bourland
American Football Coaches Foundation

Courtesy: AFCA
Release: 02/01/2005

In 2001 the Extra Point, began a series of articles in which we discussed various methods of Planned Giving which can assist The American Football Coaches Foundation (the "Foundation") meet its fundraising goals. Planned Giving is the structured and pre-planned aspect of donating to charity. It is charitable giving through Wills, Living Trusts, life insurance and other advance planned methods. In the September/October 2004 issue of the Extra Point we discussed life insurance, a Planned Giving technique. In this issue we will discuss the Will and the Living Trust. But before doing that let's again review key aspects of the Foundation, its goals and the ways it achieves its support.

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 young men and your women and the promotion and enhancement of the coaches' technical skills and coaching capabilities. The American Football Coaches Association (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 and estate tax charitable deduction to the donor. Revenue generation activities of the Foundation should be structured to maintain its advantageous publicly supported tax exempt charity status.

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 contributions are 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 involvement is important to the Foundation's game plan, to solicit and receive contributions from wealthy individuals and their family 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 all individuals to make a gift to the Foundation is by their Will or Living Trust. This applies to those with significant wealth and those with modest financial resources. Through the Will, the donor names the Foundation as a beneficiary in his or her Will resulting in the transfer of property to the Foundation upon the donor's death. Through the 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 the Will or through the 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 larger 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.

There is still time to acquire a Bench, Plaque, Capstone, Tile or Brick in 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 ranging from $2,000, for a Bench, to $200, for a Brick, 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 that whichever you acquire. The inscription will honor this special football coach and will be a permanent part of the Plaza of Influence, which is a significant aspect of the AFCA facility. Payment for each item will be treated as a contribution to the Foundation and will be income tax-deductible to the donor.

Will you consider making the Foundation a beneficiary of your Will or Living Trust? Will you also encourage others to do this? Have you acquired (and encouraged others to acquire) a permanent salute in the Plaza of Influence for the special football coach in your (or others) life? Have you planned fall fundraising events? Remember that the Foundation needs participation from every member coach in order to meet its goals.

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“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