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Phase II - John David Crow Legacy Society
Planned Giving: Several options available for donors to continue supporting Aggie athletics
Editor’s Note: The 12th Man Foundation’s associate vice president of major giving programs, Brian Frerking, recently sat down to discuss some of the benefits and options associated with a planned gift through the John David Crow Legacy Society:
Q: Can you start off by providing a little history about planned giving through the 12th Man Foundation and what membership in the John David Crow Legacy Society means?
Frerking: We formally organized a recognition society known as the John David Crow Legacy Society in 2000. Before that, we accepted planned gifts, but we had no formal way of recognizing a planned gift to the 12th Man Foundation. Now, the recognition includes the donor’s name(s) on a plaque in our lobby in the Zone at Kyle Field. It lists anyone who has done a planned gift through various means—a life insurance policy, charitable remainder unitrust, bequest, etc.
We also have an annual gathering of Legacy Society members here on campus. We put together an annual event that we modify every year. Two years ago, we had it before a baseball game with a big barbecue inside a tent. It is a great opportunity for the 12th Man Foundation to express how grateful we are for each donor’s generosity and their support for Aggie athletics, and it gives everyone a chance to meet donors who are members of the JDC Legacy Society. Each year we try to change the format. Sometimes it will be a sit-down dinner up in the Zone. But the important thing to remember is we do want to recognize these special members every year.
Q: How many people have become members of the Crow Society so far?
Frerking: Right now, we have about 65 couples or individuals who have notified us that they have included us in their estate as a planned gift.
Q: What’s the process in making a planned gift?
Frerking: It’s fairly simple, and it applies to anyone at any amount. If you would like to make any type of planned gift or deferred gift, all we need to see is documentation of the planned gift. It could be as simple as one page in a will or the beneficiary information for a life insurance policy. We don’t have to see the entire will or the entire document. We just need to see that it says, ‘Such and such has benefited to the 12th Man Foundation…’
There are specific legal terms and language that needs to be used when you are making out a will or other legal documents. If you don’t
have it worded correctly, it can cause some delays in the process or be negated through the estate probate. One of my responsibilities is to serve as a contact for donors to get advice on the specific language to use if they want to include the 12th Man Foundation in their estate. And we do have some documentation on paper that I can send out to them. Individuals who have larger estates should consult legal representation so they make sure everything is in their best interest.
Q: What are some of the primary reasons that a planned gift could be a good option for a donor to consider?
Frerking: Many times donors do it to lower their tax burden as much as possible. Many people have invested in IRAs or 401K programs over the past 50 years. These are great investments for retirement purposes; however, they are heavily taxed when passed to children as part of an estate. So, instead of listing their children as beneficiaries and losing a substantial amount due to estate taxes, donors can make the 12th Man Foundation the beneficiary and when they pass away, the 12th Man Foundation will inherit that sum of money tax-free and it can leave a wonderful legacy to support Aggie athletics.
The other great thing about planned gifts is that a lot of times this is the only way that someone can make a major gift to the university they love. Many of us cannot make a seven-figure gift while we’re still alive, but with the tax codes and the way the ‘estate tax’ works, currently the government could take up to 46 percent of an estate that is in excess of $2 million. So what planned giving does for you is it allows you to
put your money that you’ve earned over your entire life where you want it. You get a one-time exemption for your spouse on your estate. You can give the entire estate to your spouse and there’s no tax, but there are limits on what you can leave to children and other loved ones. People looking to give planned gifts normally have done well with their money, invested wisely, perhaps owned their own companies at some point or another, and the last thing they want to worry about is a substantial amount going to the government.
Q: Can you divide your planned gift between the A&M Foundation and the 12th Man Foundation?
Frerking: Yes, that’s what many donors do. For example, when writing their will, many Aggies will list their spouse as the primary beneficiary. After their spouse passes away, they may determine that one-third goes to the engineering department, one-third goes to the Corps, and one-third goes to the 12th Man Foundation. It’s all up to thedonor.
Q: What’s the best way to get the ball rolling on a planned gift to the 12th Man Foundation?
Frerking: “The best way to start is to contact me (979-260-7943 or brian@12thmanfoundation.com). There are so many different ways to make a planned gift. It’s just a matter of getting information on it and speaking to financial advisors, tax advisors, etc. But I would certainly be interested in talking to anyone who wants to make an immediate or long-term planned gift. In my opinion, it’s never too early to start making plans. Whether you are single or married— and especially if you have children— the time is now to start planning. The earlier you start the better.
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