Texas A&M Foundation 2017 Annual Report

Welcome to the Texas A&M Foundation’s 2017 annual report.

George K. Hickox and Eddie J. Davis

A Year to Celebrate

At Texas A&M University, we are lucky to have dedicated former students and friends who are committed to ensuring the success of our institution through philanthropy.

Despite market volatility and a difficult few years in the oil and gas sectors, the Foundation provided $90.8 million to the university in fiscal year 2017. The stewardship of your gifts is our greatest responsibility, and we applaud your generosity.

As we continue the Lead by Example campaign—the most ambitious fundraising campaign our university has ever undertaken and the largest ever in the state of Texas—we are thankful for your personal commitment to Texas A&M’s success. With the help of our friends and investors, we have surpassed the $2.79 billion mark in this momentous effort to raise $4 billion by 2020.

Our Office of Gift Planning also experienced a tremendous year, raising 146 planned gifts for a total of $120.3 million. Finally, we are proud to celebrate our endowment performance. Thanks to our investment policies, best-in-class staff, exceptional governance and our dedicated Board of Trustees, the Foundation’s portfolio has achieved an average 7.7 percent annual rate of return over a 15-year period. We pride ourselves on our stewardship of the hard-earned money you entrust us with so that your gifts will have the most profound impact possible in perpetuity through the endowment.

As we look to 2018, we’d like to thank you again for your extraordinary support. We remind you that all gifts are significant, regardless of size, and we challenge you to find a better return on your philanthropic dollar than Texas A&M. With your support, we are leading by example and ensuring that Texas A&M continues to be a leader among institutions of higher education.

T. Randall Cain ’82

Chairman of the Board

T. Randall Cain

Tyson Voelkel '96

President

Tyson Voelkel

2017Lead by Example Campaign

$2.79 billion Current Total

Cumulative Giving to 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 $2.79 billion campaign total represents all gifts made from Jan. 1, 2012 to Oct. 31, 2017.

160,000

Individual donors who've contributed to the campaign

20,643

Corporate/foundation donors who've contributed to the campaign

581,048

Gifts made to the campaign

$2,792,896,244 Gift total

Campaign Gift Allocation

  • Colleges25%
  • Faculty & Research21%
  • Campus Construction18%
  • Students16%
  • Unrestricted11%
  • Athletics9%

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.

2017Foundation Financials

Change in Net Assets

The Foundation's net assets increased 14.8 percent during the 2017 fiscal year.

$1,791,000,000 Total net assets
in fiscal year 2017
14.8% Net asset increase
in fiscal year 2017
Annual totals for fiscal years 2008-2017

Gifts to Texas A&M

Donors gave more than $254 million to the Texas A&M Foundation and Texas A&M University during fiscal year 2017. 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 12.4 cents.

7,955

Total donors

13,888

Total number of gifts received

$254,083,244

Total value of gifts received


$18,295

Average gift value

$1 to $15,000,000

Range of gift value

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

373
5,476

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

117
2,472

Number and Value of Gifts by Class Year

3,460 former students made 6,513 gifts to the Texas A&M Foundation totaling more than $130 million during fiscal year 2017.

$130,676,292

Total value of gifts received from former students during fiscal year 2017

Giving by Donor Location

More than 10,600 gifts totaling more than $172 million came from donors residing in Texas. Donors in Massachusetts gave 63 gifts totaling more than $20 million, while donors in California contributed 477 gifts for more than $6.5 million—making those states second and third in total gift value, respectively. Thirty-one gifts came from donors living overseas.

International donations

$0

$172,462,390

National donations

$1,000

$140,000

$183,148,716 Gift total

Sources of Gifts Received in FY 2017

  • Former Students34%
  • Corporations25%
  • Private, Family & Other Foundations20%
  • Friends13%
  • Organizations8%

Contributions from former students, friends, and private and family foundations (many formed by former students) make up 67 percent of gifts to the Foundation, while gifts from corporations and other organizations make up 33 percent of the total.

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

Top Five Corporate and Foundation Donors by Cumulative FY 2017 Giving

Many donors double, triple or quadruple the amount of their gifts by taking advantage of a corporate matching program. During fiscal year 2017, corporate and foundation donors matched 1,374 gifts to the Texas A&M Foundation for a total of $2.7 million.

01
$22,016,100
02
$10,002,500
03
$10,001,000
04
$4,000,000
05
$2,070,000
$183,148,716 Gift total

Where FY 2017 Gifts Were Directed

  • College Impact42%
  • Student Impact40%
  • Other Impact*8%
  • Faculty Impact6%
  • Spirit Impact4%

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 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.

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 2017, these funds totaled $90.8 million.

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



2016

$103,900,000

Annual total for fiscal year 2016



2017

$90,800,000

Annual total for fiscal year 2017

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 2017, the Foundation documented $120.3 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 2016, the Foundation has documented more than $1 billion in planned gift expectancies.

$120,300,000

Total value of planned gifts documented

146

Number of planned gifts documented

$10,000 to $8,000,000

Range of gift value


$15,828,889

Value of realized gifts during fiscal year 2017

$168,652,770

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.

406

Total scholarship and faculty endowments in fiscal year 2017

335

Scholarships & Graduate Fellowships

59

Other Endowments*

12

Faculty Chairs, Professorships & Fellowships

*Read More

The 59 other endowments include those supporting student organizations, college-based programs and excellence funds, study abroad initiatives and the university libraries, among others.

$254,083,244* Gift total

Gifts Received by Type

  • Revocable/Irrevocable Planned Gifts44.36%
  • Pledges28.76%
  • Current/Cash15.82%
  • Realized Bequests5.27%
  • Trusts1.58%
  • Real Estate1.39%
  • Securities1.39%
  • Online.76%
  • Retirement Accounts.62%
  • Life Insurance.04%
  • Other (Gifts in Kind).01%

The majority of gifts received by the Foundation during fiscal year 2017 include current gifts of cash, pledges, realized bequests, and revocable or irrevocable planned gifts.

*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 $127,970,575
Realized Bequests $13,401,765
Planned Gifts $112,710,904
$254,083,244*

The Foundation received more than $127 million in current gifts of cash or pledges and more than $112 million in planned gifts during fiscal year 2017. 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, 2017. The combined value of these endowments totals more than $1.3 billion.

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

Endowment Performance Over Time

The Foundation invests endowments using asset allocation to maximize growth while safeguarding capital. This chart illustrates the market value of a $100,000 endowed scholarship created in 1980 and its cumulative value of student stipends. This single endowment would have paid out more than $357,700 by 2017.

Long-Term Investment Pool Growth

The long-term investment pool (LTIP)—which has a total value of $1.6 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 top 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.

$1,618,949,124 Market value
  • Public Equity54%
  • Fixed Income11%
  • Opportunistic & Diversified9%
  • Energy8%
  • Private Equity & Venture Capital8%
  • Real Estate & Timber7%
  • Cash & Cash Equivalents3%

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The Foundation’s long-term investment pool, which has a total value of $1.6 billion, is composed mostly of endowments, but also includes other non-endowed funds invested for the long term.

2017Impacts

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.

Elevating Texas A&M

A $20 million gift from Jon L. Hagler ’58 names the Hagler Institute for Advanced Study at Texas A&M University. Funds from his gift will help attract and support academic visionaries from around the world, elevating Texas A&M to a new level of scholarship.

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Catalyst for Health

A planned gift from Debbie and Mike Hilliard ’73 will create a new entrepreneurship minor and certificate program in the College of Liberal Arts; endow scholarships for student entrepreneurs; and support the Huffines Institute for Sports Medicine and Human Performance.

Read More

Family Legacy

Through a charitable bequest in his estate, Maier Foundation President Brad Rowe '97 will create a need-based scholarship fund for future Aggie engineers. The gift honors his father, a chemical engineer and graduate of the University of Kentucky.

Read More

Investing in Mays

Mays Business School receives more than $35 million in commitments from the Mays Family Foundation, the McFerrin family and the Charles Koch Foundation in support of its entrepreneurial programs. These gifts will make Texas A&M a leading destination for aspiring entrepreneurs.

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“During the last few years, we have seen the institute develop from a promising idea to a burgeoning reality—one that has the capacity to dramatically elevate the quality and reputation of Texas A&M. By creating the Hagler Institute, Jon’s endowment will carry the torch forward, accelerating the institute onward in its mission to be a cornerstone of excellence at Texas A&M that will enhance the university in perpetuity.”

-Dr. John Junkins
Founding Director, Hagler Institute for Advanced Study

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“The Huffines Institute mission aligns with the College of Education and Human Development’s overall priority of improving the quality of life among individuals and communities for a healthier Texas. We believe this gift will allow us to make an impact on the health of the public as well as prepare our students to be leaders in the human performance field.”

-Dr. Joyce Alexander
Dean, College of Education and Human Development

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"Scholarships give students a chance. My scholarship taught me to believe in myself and that other people believe in me too."

-Dominic Johnson '19
Chemical Engineering Major
Foundation Excellence Award Recipient

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“My biggest takeaway from my entrepreneurship education at Texas A&M is simply the willingness to go do it. Donors and all the people working behind the scenes at the university give students that chance. Many startup companies may not pan out, but the experience of trying is a lesson more powerful than anything you read in a book or learn in a class. I am thankful for the people at Texas A&M who have pushed me to take risks.”

-Chris Bybee '17
Student Entrepreneur

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2017Initiatives

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.

Support Aggie Veterans

Empower Aggie veterans.

With hundreds of new veterans expected to enroll at Texas A&M annually and an increasing number of enrolled spouses, the Division of Student Affairs hopes to endow at least 150 scholarships over the next few years to ease the financial needs of Aggies who have valiantly served. Although veterans receive GI Bill benefits, many are unable to complete their degrees within the 36-month limitation, increasing the need for supplemental funds. Scholarships can also ease the challenging transition from military to civilian life.

You may choose to fund one of three types of veteran scholarships, ranging in value from $25,000 to $100,000. All gifts are payable over a five-year period, and because your gift is endowed, it will support Aggie veterans forever with annual stipends.

To learn how you can support Aggie heroes, visit our website or contact Torii Kapavik ’11, director of development for student affairs. You can also watch how Ray Dilworth ’18 (left) is already being impacted by a scholarship.

Give Now

Fund Global Study Scholarships

Send Aggies abroad.

The call for globally-attuned graduates is being heard around the world. Texas A&M ranks first nationally in students having study, research, intern or volunteer experiences abroad and sends more than 5,300 students to more than 100 countries each year—a number that continues to grow.

Global study experiences, which vary in length from one week to one year, prepare student-leaders who enter the world determined to make things better. Most students cite financial constraint as the primary reason they are unable to participate in these programs.

By funding a global study scholarship, you can give promising Aggies the edge they need to become leaders and attract future employers. You can make a one-time gift or endow a scholarship for a student in any college or major with a $25,000 gift, payable over a five-year period. The Foundation has matching opportunities through the John Tom Campbell ’45 Endowed Scholarship Program, which will provide matching funds in $25,000 increments for 54 study abroad scholarships. Thirty-four of the matching scholarships were established as of September 30.

To learn more, visit the Global Study Scholarships webpage or contact Marcy Ullmann ’86, director of scholarship programs, at (979) 845-6383 or mullmann@txamfoundation.com.

Give Now

Enhance Accounting Education

Name the Department of Accounting.

A $10 million fundraising campaign is underway to name the Mays Business School Department of Accounting in honor of James J. Benjamin, department head since 1982.

Nearly $7.5 million in pledges and commitments has been raised thus far. Funding will provide young people in the field additional opportunities to explore the accounting profession. In addition, funds will allow the department to recruit outstanding faculty; develop international opportunities for students to learn global accounting practices; and support high-impact educational programs, such as the Professional Program and the Energy Accounting Program.

Experiential learning is key to applying knowledge learned in the classroom to the real world. When students can explore different business paths before taking the plunge into real life, they are increasingly motivated in their studies and can make more informed decisions regarding their career specialization.

To make an endowed gift of $25,000 or more to support the naming initiative, contact Brian Bishop ’91 at bbishop@txamfoundation.com or (979) 862-3615.

Give Now

Advance Faculty Teaching and Research

Fund a faculty chair, professorship or fellowship.

When you invest in faculty, you give Texas A&M University an academic edge. Top-notch faculty members attract not only other superb professors but also superb students. Because state funds cover only basic faculty requirements, private support is more critical than ever. Endowed funds can create fellowships, professorships, or chairs.

Faculty gifts may be named in memory or honor of a person, class or organization of the donor’s choice. Gifts are tax-deductible and may be funded through cash, securities, real estate or your estate. Most faculty gifts are payable over a five-year period.

The Texas A&M Foundation invests endowed funds in a way that maximizes growth while safeguarding the principal. Then, the Foundation annually distributes only the earnings on your investment. Most donors choose to create an endowed gift that will last in perpetuity, but you may also choose to fund a one-time gift. You can direct your gift to support a faculty member in a particular field of study.

To explore giving opportunities, visit the Texas A&M Foundation’s faculty webpage.

Give Now

2017Thank You

Thank you for visiting the Texas A&M Foundation’s online annual report. We hope you enjoyed reviewing our 2016-2017 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.