Texas A&M Foundation 2018 Annual Report

Welcome to the Texas A&M Foundation’s 2018 annual report.

George K. Hickox and Eddie J. Davis

We Thank You

Since its inception in 1953, the Texas A&M Foundation has been a partner in our university’s mission of education, research and service, and this partnership touches every part of the university today. In 2018, thanks to your generosity, we made $111.1 million available in support to Texas A&M. Your contributions also helped grow the total value of the endowments held in our long-term investment pool to nearly $1.8 billion.

Across campus, your generosity makes learning and discovery possible. From scholarships, fellowships and professorships to academic programs and facility upgrades, your gifts sustain our university’s proud history and help secure its future.

As we enter the final stages of the Lead by Example campaign—the most ambitious fundraising effort the university has ever undertaken and the largest ever in the state of Texas at $4 billion—we are excited to report that through the commitment of several double-digit million-dollar gifts, we have surpassed the $3.24 billion mark. This number encompasses contributions from all four of Texas A&M’s fundraising organizations.

The continued loyalty of our planned giving donors continues to be a huge source of support. Nearly 40 percent of the $1.95 billion the Foundation has raised toward the campaign has been committed in planned gifts. Gifts of all sizes are meaningful and support Texas A&M’s important mission of developing leaders of character dedicated to serving the greater good.

Finally, we want you to know that we take the investment of your gifts seriously. Thanks to exceptional governance and our dedicated Board of Trustees, the Foundation’s portfolio has achieved an average 8.1 percent annual rate of return over a 15-year period. When you consider the growth potential of this portfolio from investment returns, the continued generosity of our donors and a best-in-class fundraising organization, we have an incredible opportunity to make a substantial impact on Texas A&M’s future.

As we look to 2019, we remain grateful and humbled by the support of thoughtful donors who share a vision for this great institution that is full of promise. To learn more about making a current or planned gift through the Foundation, visit our website at txamfoundation.com.

Thanks for all you do.

Jorge Bermúdez ’73

Chairman of the Board

Jorge Bermúdez

Tyson Voelkel '96

President

Tyson Voelkel

2018Lead by Example Campaign

$3.24 billion Current Total

Cumulative Giving to the Lead by Example Campaign

Lead by Example is Texas A&M’s $4 billion comprehensive campaign, one of the boldest initiatives in the history of public higher education and the largest fundraising endeavor ever undertaken in Texas. This campaign encompasses all private gifts benefiting Texas A&M, including gifts from individuals, foundations and corporations through the Texas A&M Foundation, The Association of Former Students, the 12th Man Foundation and the George H.W. Bush Presidential Library Foundation. The $3.24 billion campaign total represents all gifts made from Jan. 1, 2012 through Sept. 30, 2018.

173,836

Individual donors who have contributed to the campaign

22,660

Corporate/foundation donors who've contributed to the campaign

676,059

Gifts made to the campaign

$3,243,400,368 Gift total

Campaign Gift Allocation

  • Colleges26%
  • Faculty & Research21%
  • Students19%
  • Campus Construction16%
  • Unrestricted10%
  • Athletics8%

Campaign contributions are funding programs within Texas A&M colleges, faculty and research initiatives, campus construction, student scholarships and athletic programs. Unrestricted funds represent contributions that have not yet been designated by donors.

2018Foundation Financials

Change in Net Assets

The Foundation's net assets increased 11.4 percent during the 2018 fiscal year.

$1,995,700,000 Total net assets
in fiscal year 2018
11.4% Net asset increase
in fiscal year 2018
Annual totals for fiscal years 2009-2018

Gifts to Texas A&M

Donors gave more than $310 million to the Texas A&M Foundation and Texas A&M University during fiscal year 2018. This total includes cash gifts, future pledge payments at full face value, and revocable and irrevocable planned gifts.

For every dollar raised during the past five years, the Foundation has spent an average of 12.2 cents.

9,880

Total donors

16,528

Total number of gifts received

$311,285,499

Total value of gifts received


$18,834

Average gift value

$0.01 to $80,321,000

Range of gift value

The A&M Legacy Society

The A&M Legacy Society recognizes individuals, corporations and organizations whose cumulative giving through Texas A&M University, the Texas A&M Foundation, The Association of Former Students, the 12th Man Foundation and the George H.W. Bush Presidential Library Foundation totals $100,000 or more.

New Members

Total Members

Legacy

340
6,093

Heritage members in the A&M Legacy Society are individuals who have included a gift for the benefit of Texas A&M in their estate plans.

Heritage

113
2,259

Number and Value of Gifts by Class Year

4,181 former students made 7,690 gifts to the Texas A&M Foundation totaling more than $147 million during fiscal year 2018.

$147,332,439

Total value of gifts received from former students during fiscal year 2018

Giving by Donor Location

More than 12,671 gifts totaling more than $188 million came from donors residing in Texas. Donors in Virginia gave 225 gifts totaling more than $6.8 million, while donors in California contributed 577 gifts for more than $3.6 million—making those states second and third in total gift value, respectively. Fifty-three gifts came from donors living overseas.

International donations

$0

$188,562,996

National donations

$100

$420,350

$237,497,465 Gift total

Sources of Gifts Received in FY 2018

  • Private, Family & Other Foundations42%
  • Former Students27%
  • Corporations16%
  • Friends8%
  • Organizations7%

Contributions from former students, friends, and private and family foundations (many formed by former students) make up 77 percent of gifts to the university and the Foundation, while gifts from corporations and other organizations make up 23 percent of the total.

Following generally accepted accounting principles, this total includes pledges and irrevocable planned gifts.

Leading Corporate and Foundation Donors by FY 2018 Cumulative Giving

Many donors double, triple or quadruple the amount of their gifts by taking advantage of a corporate matching program. During fiscal year 2018, corporate and foundation donors matched 1,416 gifts to the Texas A&M Foundation for a total of $2.8 million.

01
$6,005,000
02
$5,000,000
03
$3,501,500
04
$3,198,648
05
$2,826,000
$237,497,465 Gift total

Where FY 2018 Gifts Were Directed

  • Student Impact56%
  • College Impact29%
  • Other Impact*8%
  • Faculty Impact4%
  • Spirit Impact3%

Each gift received by the Foundation is linked to one of four designated “impact areas.”

*Includes gifts that pass to non-university accounts, such as the Texas A&M University System and The Association of Former Students’ matching funds, as well as Texas A&M Foundation gifts in holding and class gift funds, for which donors have not yet identified the gift impact area.

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Student impact represents academic scholarships and fellowships to undergraduate and graduate students. Faculty impact refers to gifts that fund faculty chairs, professorships and fellowships. College impact gifts help a college or department through discretionary or building funds, which in turn support faculty and students through improved teaching and learning environments. Spirit impact gifts cultivate student organizations, traditions and other outside-the-classroom programs.

$137,511,215

Student Impact

$67,319,083

College Impact

$9,638,304

Faculty Impact

$7,774,870

Spirit Impact

Foundation Funds Made Available to Texas A&M

The Foundation annually makes millions of dollars available to Texas A&M for students, faculty, facilities and programs according to donors’ wishes. In fiscal year 2018, these funds totaled $111.1 million.

These funds consist of non-endowed gifts—funds made available to disburse immediately rather than invested by the Foundation—and income from endowments.



2017

$90,800,000

Annual total for fiscal year 2017



2018

$111,100,000

Annual total for fiscal year 2018

Planned Giving by the Numbers

The Foundation’s Office of Gift Planning helps donors establish after-lifetime and dual-benefit gifts that will aid Texas A&M University and its students in the future. For fiscal year 2018, the Foundation documented $121.2 million in planned gifts, which includes gifts that will be received by the Texas A&M Foundation, The Association of Former Students, the 12th Man Foundation and the George H.W. Bush Presidential Library Foundation. From 1999 to 2018, the Foundation has documented more than $1.2 billion in planned gift expectancies.

$121,200,000

Total value of planned gifts documented

121

Number of planned gifts documented

$1,000 to $20,000,000

Range of gift value


$17,317,782

Value of realized gifts during fiscal year 2018

$185,970,552

Value of realized gifts in the last 10 years

New Endowments Breakdown

The Foundation prides itself on enhancing the academic experience at Texas A&M University for both students and faculty. Donors who create endowments for scholarships, chairs, professorships and fellowships leave a legacy that enhances Texas A&M’s core mission of providing the highest-quality undergraduate and graduate programs.

387

Total scholarship and faculty endowments in fiscal year 2018

305

Scholarships & Graduate Fellowships

71

Other Endowments*

11

Faculty Chairs, Professorships & Fellowships

*The 71 other endowments include those supporting student organizations, college-based programs and excellence funds, study abroad initiatives and the university libraries, among others.

$311,285,499* Gift total

Gifts Received by Type

  • Pledges42.14%
  • Revocable/Irrevocable Planned Gifts30.87%
  • Current/Cash18.02%
  • Real Estate2.93%
  • Realized Bequests2.48%
  • Securities1.41%
  • Online.83%
  • Trusts.80%
  • Retirement Accounts.43%
  • Life Insurance.08%

The majority of gifts received by the Foundation during fiscal year 2018 include pledges, revocable or irrevocable planned gifts, and current gifts of cash.

*This total includes cash gifts, future pledge payments at full face value, and revocable and irrevocable planned gifts

Gift Comparison

Gift Type

Gift Total

Current $207,482,087
Planned Gifts $96,096,446
Realized Bequests $7,706,966
$311,285,499*

The Foundation received more than $207 million in current gifts of cash or pledges and more than $95 million in planned gifts during fiscal year 2018. This total does not include planned gifts that will be received by The Association of Former Students, the 12th Man Foundation and the George H.W. Bush Presidential Library Foundation. Realized bequests make up the remaining portion in total dollars received.

*This total includes cash gifts, future pledge payments at full face value, and revocable and irrevocable planned gifts.

Endowment Values by Unit

Shown below is the value of each unit’s endowment held by the Texas A&M Foundation for the benefit of Texas A&M University as of June 30, 2018. The combined value of these endowments totals more than $1.49 billion.

*Includes Texas A&M University Press, KAMU-TV, Reed Arena, non-designated endowments and endowments with split beneficiaries.

Endowment Performance Over Time

The Texas A&M Foundation invests endowments using asset allocation to maximize growth while safeguarding capital during tough economic times. The chart below illustrates the market value of a $100,000 endowed scholarship created in 1998 and its cumulative value of student stipends. This single endowment would have paid out approximately $5,000 annually for a total of $101,850 by 2018. Its market value after 20 years would be $134,007.

Long-Term Investment Pool Growth

The long-term investment pool (LTIP)—which has a total value of nearly $1.8 billion—has consistently met or exceeded our portfolio management guidelines, resulting in both the growth of funds available to Texas A&M University and the asset size of the portfolio. The LTIP is composed mostly of endowments, but also includes other non-endowed funds invested for the long term.

Investment Performance

The Foundation has a solid record of investing. Over the years, we have consistently met internal performance goals and outperformed many peer organizations, ranking in the first or high second investment quartile.

Prior to 2015, the long-term investment pool (LTIP) was benchmarked against a passive index comprised of a global equity index and a domestic bond index (75% MSCI ACWI/25% Barclays U.S. Bond Aggregate Index). In 2015, the Foundation’s Board of Trustees implemented a new policy benchmark that better reflects the target asset allocation of the LTIP. Our custodian bank was able to back test the new policy benchmark for returns prior to 2015, but only back to 2012. As such, we are not able to produce a 10 and 15-year return for the new policy benchmark. We are still able to report the old 75/25 benchmark for all periods shown here.

Long-Term Investment Pool Asset Allocation

By investing assets, the Foundation preserves the purchasing power of gifts while providing steady earnings for Texas A&M. The Foundation’s long-term investment pool, which has a total value of nearly $1.8 billion, is composed mostly of endowments, but also includes other non-endowed funds invested for the long term.

$1,793,245,426 Market value
  • Public Equity52%
  • Fixed Income10%
  • Private Equity & Venture Capital9%
  • Energy8%
  • Real Estate & Timber8%
  • Opportunistic & Diversified7%
  • Cash & Cash Equivalents6%

2018Impacts

Every gift makes an impact. Here’s a look at how some of your gifts are benefiting Texas A&M University students, faculty, colleges and programs.

Rivals United

J. Mike Walker '66 gave $20 million to both Texas A&M University and The University of Texas at Austin to support each institution's mechanical engineering department. In recognition, both departments are renamed in his honor.

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Home on the Range

A gift of Hill Country property from Kay and Charles “Charlie” Pence ’51 will support the Corps of Cadets, programs in the College of Veterinary Medicine & Biomedical Sciences, and the Singing Cadets.

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Business Boost

Aggie couple Shannon ’86 and Wayne Roberts ’85 create the largest planned gift in Mays Business School history. Their generous commitment will establish an excellence endowment that will benefit business students, programs and faculty at the discretion of the dean.

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Long-Term Plans

Millennials Chase ’10 and Kalyn Georg Carroll ’12 ’14 prove that you’re never too young for a planned gift. Their gift will enhance the Agribusiness Entrepreneurship program in the College of Agriculture and Life Sciences.

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“We are humbled by the generous support of Mike Walker and will be proud to have his name now tied to our Department of Mechanical Engineering. This gift will enable us to build upon our strong tradition of offering superb engineering education to our students and conducting preeminent and impactful research to benefit the world.”

-Dr. M. Katherine Banks
Texas A&M Engineering vice chancellor and Harold J. Haynes Dean's Chair in Engineering

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Our college is immeasurably grateful to the Pence family for this generous gift, which will create scholarships and establish endowments for Courtney Cares and Eli’s Fund. The Pences’ love and extraordinary kindness will ensure that their support will continue in perpetuity. Their gift is helping to create stronger, more innovative, and more globally connected opportunities for students, veterans and their dogs, and people needing a new start in life. We are forever grateful.

-Dr. Eleanor M. Green
Carl B. King Dean of Veterinary Medicine

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“Wayne and Shannon are truly remarkable. Their passion for helping students succeed is notable in many ways. They open their home every year to prospective business honors students and their parents to talk about why Texas A&M and Mays Business School would be the right choice. We are very grateful for their generosity.”

-Dr. Eli Jones
Dean of Mays Business School
Professor of Marketing
Lowry and Peggy Mays Eminent Scholar

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The Carrolls’ gesture is huge in terms of the signal it sends. Their gift will allow us to keep this program’s momentum going—and the impact is only going to get bigger.

-Dr. Ed Rister ’74 ’76
Rural Entrepreneurship Professor and
Associate Department Head of Agricultural Economics

View Full Story

2018Initiatives

The Texas A&M Foundation matches your interests to funding priorities, no matter what your passion. Below are a few of our major fundraising initiatives for the coming year.

Create Your Aggie Legacy

The Texas A&M Foundation’s Office of Gift Planning has a goal to raise $1 billion in planned gifts during the Lead by Example campaign. Giving a planned gift is one of the best ways to invest in the future of Texas A&M, as it is an enduring sign of loyalty that will continue to benefit the university after your lifetime. So far, more than $778 million has been committed in planned gifts since the start of the campaign in 2012.

If you want to create a future gift for Texas A&M, our experienced gift planners will work with you, your attorney and other advisers to design the best gift plan for your unique needs and interests. Through planned gifts, you can provide for loved ones, receive tax benefits, generate potential retirement income and help Texas A&M all at the same time.

To learn more about available giving options, visit txamfoundation.com/plan or contact Glenn Pittsford ’72, vice president for gift planning, at gpittsford@txamfoundation.com or (800) 392-3310.

Learn More

Build a World-Class Dental Facility

The Texas A&M University College of Dentistry in Dallas is embarking on a capital project to build a new, world-class clinical education facility. The college is the largest single provider of oral health care in North Texas and receives more than 100,000 patient visits annually, many from those who are low-income or homeless. The new clinical space will allow the dental school to raise student enrollment, increase patient visits to 150,000, and significantly improve patient access, privacy and comfort.

Former students, corporations, families, classes and friends may include their names or memorialize a loved one as a permanent part of the Clinic and Education Building by funding a lobby, patient reception or an operatory. Your gift will also count toward the Lead by Example campaign. Your financial support will help the Texas A&M College of Dentistry improve oral health care for a diverse community and serve as leaders in health professions education.

The goal for the project is $10 million, and naming opportunities begin at $25,000. You can view available naming opportunities here. To learn more, contact Melissa Ogden, director of development, at (214) 828-8449 or mogden@txamfoundation.com.

Give Now

Support the Dean’s Education Scholars

The College of Education and Human Development, the premier teacher prep program in Texas, recently launched its Dean’s Education Scholars Program. The program is designed to provide outstanding, low-income students in the college with consistent support during their time at Texas A&M.

By encouraging these gifted students to seek teacher certification at Texas A&M, you can create a path to academic achievement for those who may someday lead the way in high-need teaching fields. Texas A&M is the state’s No. 1 producer of math, science, and English and language arts teachers, as well as the No. 1 producer of bilingual teachers. It is also the No. 6 producer of special education teachers. The college hopes to raise 50 Dean’s Education Scholarships, which can be established with a $100,000 endowed gift to the Texas A&M Foundation.

In addition, the college hopes to raise $5 million in other scholarships by the end of the Lead by Example campaign in 2020. You can set preferences for a certain major or a first-generation student.

Learn more by contacting Jody Ford ’99, senior director of development, at (979) 847-8655 or jford@txamfoundation.com.

Learn More

Enrich Programs for Aggie Veterans

Since 2012, the Veteran Resource and Support Center (VRSC) has helped undergraduate and graduate student veterans navigate Texas A&M while providing a welcoming space, peer mentoring, and tools to succeed academically and personally.

The VRSC is searching for a major donor to build a new space to better aid student veterans. The asking price for the building is $10 million, and the donor will receive naming rights to the physical space as well as to the VRSC itself.

In addition, you can support one of the many programs that provide student veterans with educational resources and support for their college career, including Vet Camp, an in-depth orientation program designed to prepare student veterans for academic success; The Aggie Shields Textbook Loan Library, a student-led program that provides donated textbooks for veterans to use each semester at no cost; and the Faculty, Staff & Advisor Outreach Program, a series of seminars and workshops that provides awareness of the contributions that veterans bring to higher education.

Learn more about supporting Aggie heroes at https://aggieveterans.tamu.edu or contact Megan Pulliam ’09, assistant director of development, at mpulliam@txamfoundation.com or (979) 458-3136.

Give Now

2018Thank You

Thank you for visiting the Texas A&M Foundation’s online annual report. We hope you enjoyed reviewing our 2017-2018 highlights and leave inspired about ongoing efforts to enhance and advance Texas A&M University.

No annual report would be complete without an Aggie-sized thank you to our donors. Whether a former student, friend, corporation or foundation, we appreciate your enduring spirit and commitment to Aggieland. Your contributions support Texas A&M’s third comprehensive campaign, Lead by Examplea $4 billion fundraising endeavor to enhance Texas A&M’s stature as a world-class institution of higher education. This campaign is a joint effort between Texas A&M University, the Texas A&M Foundation, The Association of Former Students, the 12th Man Foundation and the George H.W. Bush Presidential Library Foundation.