AMERICAN FOOTBALL COACHES ASSOCIATION &AMERICAN FOOTBALL COACHES FOUNDATION 2002 AFCA Annual Convention Michael V. Bourland Michelle Coleman-Johnson Bourland, Wall & Wenzel, P.C. Fort Worth, Texas
AFCA/AFCF VISIONOUR GOALS • To provide for education of American football coaches to better serve the public through • role modeling and character development for young men and women • enhancement of their technicalskills and coaching capabilities
AFCA/AFCF STRUCTUREOUR LINE-UP • To provide funding for the American Football Coaches Association & the American Football Coaches Foundation in a number of different ways
AFCA/AFCF STRUCTUREOUR LINE-UP • The American Football Coaches Association is a tax exempt trade association • Contributions to the AFCA do not qualify for an income tax charitable deduction to the donor
AFCA/AFCF STRUCTUREOUR LINE-UP • The American Football Coaches Foundation is a publicly supported, tax exempt charity • Contributions to the AFCF qualify for income tax charitable deduction for donor • Revenue generation activitiesshould be structured tomaintain publicly supported charity status of AFCF
AFCA/AFCF STRUCTUREOUR LINE-UP • The Rule • More than 1/3 of total support must come froma broad representationof the “public”. • Reviewed by IRS over theinitial 5 year period and on a4 year moving average thereafter.
AFCA/AFCF STRUCTUREOUR LINE-UP • What is “public” support? • Includes contributions of many kinds and bequests under wills from a broad range of contributors.
AFCA/AFCF METHODOUR GAME PLAN • Gift of Cash to AFCF • AFCF has immediateuse of cash • Donor receives incometax charitable deductionequal to cash gift
AFCA/AFCF METHODOUR GAME PLAN • Gift of Appreciated Property - real estate, stock, other property - to AFCF • AFCF has immediate use of asset • Donor receives income tax charitable deduction equal to asset’s value • Donor does not pay income tax on the property’s increased value
AFCA/AFCF METHODOUR GAME PLAN • Bequest in Will • Donor names AFCFas beneficiary in Will • Bequest not subject totax in donor’s estate • Bequest can be cash,real estate or other property
AFCA/AFCF METHODOUR GAME PLAN • Life Insurance • Donor owns life insurancepolicy and names AFCF asbeneficiary • AFCF receives policyproceeds upon donor’s death • Proceeds not subject to tax in donor’s estate
AFCA/AFCF METHODOUR GAME PLAN • Life Insurance (continued) • Donor names AFCF owner of life insurance policy • Donor makes annual cash gifts to AFCF for premiums and receives income tax charitable deduction • AFCF receives policy proceeds upon donor’s death • Proceeds not subject to tax in donor’s estate
AFCA/AFCF METHODOUR GAME PLAN • Retirement plan benefits/IRA • Donor names AFCF as beneficiary of RetirementPlan Benefits/IRA • AFCF receives benefitsupon donor’s death • Benefits not subject to taxin donor’s estate
AFCA/AFCF METHODOUR GAME PLAN • Charitable Remainder Trust • Donor creates and gifts propertyto trust • Income tax-exempt trust providesannual payment to donor for life • AFCF receives trust assetsupon donor’s death • Trust assets are not subject totax in donor’s estate
AFCA/AFCF METHODOUR GAME PLAN • Charitable Lead Trust • Donor creates and gifts property to trust during donor’s life • Income taxable trust makes deductible annual payments to AFCF for term of years • Donor’s family receives trust assets at end of AFCF’s payment term • Trust assets not subject to tax in donor’s estate
SUMMARYFINAL SCORE • With the proper implementation of our Game Plan • AFCA and AFCFmeet their goals. • Donors receivecharitable taxdeductions for giftsto AFCF.