Texas A&M Foundation 2019 Annual Report

Welcome to the Texas A&M Foundation’s 2019 annual report.

George K. Hickox and Eddie J. Davis

Year in Review

All it took was one Benjamin Franklin. In 1953, the Texas A&M College Development Foundation was formed with an initial $100 in assets. Today, the total value of the endowments held in the Texas A&M Foundation’s long-term investment pool is nearly $1.9 billion, thanks to the incredible generosity of Aggie former students and friends over the last 60-plus years. This fiscal year, your gifts allowed us to make $108.1 million available to Texas A&M University for the benefit of students, faculty, colleges and programs.

During this fiscal year, there were many reasons to celebrate philanthropy. We witnessed the opening of the Zachry Engineering Education Complex last fall, a truly phenomenal 21st-century facility that redefines engineering education, made possible by countless gifts. Contributions also named the James Benjamin Department of Accounting and created the Albritton Center for Grand Strategy at the Bush School of Government and Public Service, a new institution that will study U.S. foreign policy.

At the Foundation level, we celebrated a milestone of our own: 50 years of the President’s Endowed Scholarship program. These four-year scholarships, awarded to high-achieving high school seniors, help attract the best and brightest minds to Texas A&M. Since 1968, gifts to this program have helped more than 6,350 Aggies attend our university.

As we enter the last year of the Lead by Example campaign, it’s safe to say that we have one more cause for celebration: We are pleased to announce that more than $3.67 billion has been raised toward the $4 billion campaign goal. We feel confident in crossing the finish line by Dec. 31, 2020, and we thank you for your undying dedication to the future of Texas A&M, which brought us this far.

While you study the financial charts that follow, keep in mind that statistics can never tell the true story of philanthropy at Texas A&M. They can’t communicate the heartfelt pride our organization has in its mission or how far the Aggie culture of philanthropy has come. They can’t recognize specific names, gifts or milestones, nor can they detail the relationships that members of our organization cherish with each of you. They can’t explain the individualized passions and motivations behind each gift, but they can—and do—say something grand about the collective power of giving back.

Thanks for leading by example.

Otway Denny Jr. ’71

Chairman of the Board

Otway Denny Jr.

Tyson Voelkel '96

President & CEO

Tyson Voelkel

2019Lead by Example Campaign

$3.67 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 & Barbara Bush Foundation. The $3.67 billion campaign total represents all gifts made from Jan. 1, 2012 through Sept. 30, 2019.

189,250

Individual donors who have contributed to the campaign

24,725

Corporate/foundation donors who have contributed to the campaign

783,565

Gifts made to the campaign

$3,670,571,304 Gift total

Campaign Gift Allocation

  • Colleges27%
  • Faculty & Research21%
  • Students19%
  • Campus Construction15%
  • 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.

2019Foundation Financials

Change in Net Assets

The Foundation's net assets increased 4.6 percent during the 2019 fiscal year.

$2,088,100,000 Total net assets
in fiscal year 2019
4.6% Net asset increase
in fiscal year 2019
Annual totals for fiscal years 2010-2019

Gifts to Texas A&M

Donors gave more than $222 million to the Texas A&M Foundation and Texas A&M University during fiscal year 2019. 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 12.7 cents.

9,959

Total donors

16,431

Total number of gifts received

$222,543,706

Total value of gifts received


$13,544

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 & Barbara Bush Foundation totals $100,000 or more.

New Members

Total Members

Legacy

667
6,773

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

123
2,354

Number and Value of Gifts by Class Year

4,274 former students made 7,774 gifts to the Texas A&M Foundation totaling more than $114 million during fiscal year 2019.

$114,222,627

Total value of gifts received from former students during fiscal year 2019

Giving by Donor Location

More than 12,000 gifts totaling more than $149 million came from donors residing in Texas. Donors in Colorado gave 100 gifts totaling more than $7.9 million, while donors in Ohio contributed 150 gifts for more than $5.2 million—making those states second and third in total gift value, respectively. Sixty-five gifts came from donors living overseas.

International donations

$40

$149,797,122

National donations

$1

$942,555

$178,222,312 Gift total

Sources of Gifts Received in FY 2019

  • Former Students27%
  • Corporations22%
  • Private, Family & Other Foundations21%
  • Friends16%
  • Organizations14%

Contributions from former students, friends, and private and family foundations (many formed by former students) make up 64 percent of gifts to the university and the Foundation, while gifts from corporations and other organizations make up 36 percent of the total.

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

Leading Corporate and Foundation Donors by FY 2019 Cumulative Giving

Many donors double, triple or quadruple the amount of their gifts by taking advantage of a corporate matching program. During fiscal year 2019, corporate and foundation donors matched 4,435 gifts to the Texas A&M Foundation for a total of $42.6 million.

01
$5,038,750
02
$3,590,000
03
$3,000,000
04
$1,522,642
05
$1,500,000
$178,222,312 Gift total

Where FY 2019 Gifts Were Directed

  • Student Impact41%
  • College Impact39%
  • Other Impact*9%
  • Faculty Impact6%
  • Spirit Impact5%

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.

$72,677,228

Student Impact

$70,071,721

College Impact

$11,028,416

Faculty Impact

$8,015,122

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 2019, these funds totaled $108.1 million.

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



2018

$111,100,000

Annual total for fiscal year 2018



2019

$108,130,000

Annual total for fiscal year 2019

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 2019, the Foundation documented $115.5 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 & Barbara Bush Foundation. From 2010 to 2019, the Foundation has documented more than $982 million in planned gift expectancies.

$115,530,000

Total value of planned gifts documented

147

Number of planned gifts documented

$1,500 to $10,290,000

Range of gift value


$24,025,567

Value of realized gifts during fiscal year 2019

$171,267,846

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, fellowships and various other needs leave a legacy that enhances Texas A&M’s core mission of providing the highest-quality undergraduate and graduate programs.

400

Total scholarship and faculty endowments in fiscal year 2019

315

Scholarships & Graduate Fellowships

73

Other Endowments*

12

Faculty Chairs, Professorships & Fellowships

*The 73 other endowments include those supporting student organizations, college-based programs and excellence funds, study abroad initiatives and the university libraries, among others.

$222,543,706* Gift total

Gifts Received by Type

  • Revocable/Irrevocable Planned Gifts43.99%
  • Pledges23.83%
  • Current/Cash17.82%
  • Realized Bequests7.96%
  • Trusts2.52%
  • Online1.24%
  • Real Estate.76%
  • Securities.48%
  • Retirement Accounts.8%
  • Life Insurance.6%

The majority of gifts received by the Foundation during fiscal year 2019 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 $106,938,260
Planned Gifts $97,899,408
Realized Bequests $17,706,038
$222,543,706*

The Foundation received more than $106 million in current gifts of cash or pledges and more than $97 million in planned gifts during fiscal year 2019. This total does not include planned gifts that will be received by The Association of Former Students, the 12th Man Foundation and the George & Barbara Bush 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, 2019. The combined value of these endowments totals more than $1.58 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 1999 and its cumulative value of student stipends. This single endowment would have paid out approximately $5,000 annually for a total of $100,932 by 2019. Its market value after 20 years would be $132,298.

Long-Term Investment Pool Growth

The long-term investment pool (LTIP)—which has a total value of nearly $1.9 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, investment performance has 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 seeks to preserve 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 more than $1.8 billion, is composed mostly of endowments, but also includes other non-endowed funds invested for the long term.

$1,880,846,845 Market value
  • Public Equity51%
  • Private Equity13%
  • Fixed Income9%
  • Real Estate & Timber9%
  • Energy8%
  • Opportunistic7%
  • Cash3%

2019Impacts

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.

A Center for Strategy

The Charles Koch Foundation and Texas A&M University System Regent Robert Albritton ’71 provided multimillion-dollar gifts to establish the Albritton Center for Grand Strategy at the Bush School of Government and Public Service. The new center serves as an intellectual hub for the critical examination of America’s grand strategic choices.

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Helping Future Healers

Sue and Joe Knowles ’50 committed the largest scholarship gift in the history of Texas A&M health sciences. Their $7 million planned gift will create scholarships for both College of Medicine and College of Nursing students.

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Life-Changing Experience

Jane ’76 and Bill Thomas ’75 committed a $3 million gift to endow Field Camp in the Department of Geology and Geophysics in the College of Geosciences. Field Camp is a required three-week experience for students enrolled in GEOL 350 that expands Aggies’ knowledge of geology. Thanks to the couple’s gift, students will now attend free of charge.

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The Selling Point

Reynolds and Reynolds dedicated a $4 million endowment to name the Reynolds and Reynolds Sales Leadership Institute in Mays Business School. The interdisciplinary program will teach students from across Texas A&M University about the importance of sales and how to apply leading-edge sales strategies and technology to their future careers.

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"The new center will be a place for scholars and policy practitioners to come together, share their ideas and learn from each other. It will allow us to play a role in shaping America’s future role on the global stage, and I look forward to seeing the great work it will accomplish."

-Mark A. Welsh III
Dean, The Bush School
Edward & Howard Kruse Endowed Chair Holder
Executive Professor

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We are grateful for Sue and Joe Knowles’ support of the Health Science Center and our students. Their generosity will allow tomorrow’s health care leaders being trained today at Texas A&M, and those who want to practice in rural settings, the opportunity to do so and make such a difference.

-Greg Hartman
Vice Chancellor for Strategic Initiatives, The Texas A&M University System
Interim Senior Vice President, Texas A&M University Health Science Center

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“This gift will transform the life and career of every one of our majors. At the heart of their visionary gift is equity of opportunity, ensuring that all of our geology majors experience field camp and ensuring that the department is able to offer this experience in perpetuity.”

-Dr. Debbie Thomas
Dean and Professor, College of Geosciences

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“The investments that Reynolds and Reynolds have made over the years are significant. But it’s more than the money. We have great relationships with these folks. They’ve been partners for quite a while, and they have hired numerous Aggies.”

-Dr. Eli Jones '82 '86 '97
Dean of Mays Business School
Professor of Marketing
Lowry and Peggy Mays Eminent Scholar

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2019Initiatives

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 Physicianeers

Texas A&M is leading the way toward the future of health care with its one-of-a-kind Engineering Medicine, or EnMed, program. EnMed is a graduate school option developed in partnership between the colleges of engineering and medicine along with Houston Methodist Hospital to foster “physicianeers”—a new kind of physician with the engineering prowess to develop world-changing health care technology.

EnMed students simultaneously earn fully-integrated engineering and medical degrees in four years. Responding to the rapid advances in technology, this new type of medical education prepares professionals with the clinical skills to diagnose symptoms and treat patients, along with the engineering mindset to solve problems, invent new technologies and rapidly move these innovative ideas to practice in patient care. 

As it continues to expand, EnMed seeks scholarships for student enrollees and faculty chairs for professors leading the program. Furthermore, funding is needed to support awards for student capstone projects with commercial potential.

To learn more about supporting EnMed, contact Reagan Chessher ’96, senior director of development, at (979) 862-6415 or rchessher@txamfoundation.com or David Boggan ’79, senior director of development, at (979) 436-0811 or dboggan@txamfoundation.com.

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Prepare Aggie Intelligence Leaders

Upon the direct recommendation of the late President George H.W. Bush, the Bush School of Government and Public Service at Texas A&M University has made intelligence studies a core focus of its academic mission. Since its inception in 1997, 31-year CIA veteran James Olson has led the Bush School’s intelligence studies program, and approximately 300 Bush School graduates have entered intelligence careers.

Students pursuing intelligence studies take part in a rigorous two-year curriculum that emphasizes hands-on skills, foreign language, intelligence, research and public service. The Bush School combines this well-rounded academic curriculum with practitioner faculty like Olson.

To continue producing principled leaders of character for careers in national intelligence, enhancements must be made to secure the school’s position as a leading force in the field. The school seeks funding for recruiting and hiring seasoned practitioners with intelligence experience as well as intelligence fellows to engage with students on subjects not currently covered in the curriculum. Given the growing number of students interested in intelligence careers, the Bush School also seeks to expand the courses offered in this area.

To support the Bush School’s intelligence studies program, contact Michael Bottiglieri ’89, senior director of development, at (979) 458-8035 or mbottiglieri@txamfoundation.com.

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Let’s Grow Together

Vision continues to become reality at the Leach Teaching Gardens on West Campus, where plans to grow the space severalfold are underway. As designs for the next 20 acres take shape in architects’ sketchbooks, the project seeks to engage members of the community who are interested in planting the seeds for its second phase.

Phase I of The Gardens at Texas A&M University opened to the public in 2018 and has already hosted more than 3,000 people of all ages on formal tours. Even more visitors have dropped in just to enjoy the seven-acre green space, which includes welcoming sites for teaching, research and outreach. Twenty-one themed gardens boast numerous species of trees, ornamentals, herbs and other horticultural plants.

The next 20 acres, Phase II, will continue to advance education, culture, discovery and wellness while embracing community outreach. Features may include a family garden, floral displays and a reprise of The Grove outdoor venue. Donations at every level help keep The Gardens blooming and support internships and programs, while there are also naming opportunities for current and future gardens.

To support The Gardens, contact Allyson Tjoelker ’02, assistant vice president for development, at (979) 458-7929 or atjoelker@txamfoundation.com. Learn more at gardens.tamu.edu.

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Strengthen Student Veteran Resources

Throughout Texas A&M’s history, Aggies have consistently stepped up when called upon to serve their country. Of the numerous veteran resources offered on campus, three prominent programs are seeking financial support:

• The Veteran Aggie Leaders for Outreach and Resources (VALOR) program is a mentorship program that connects incoming veterans with experienced student veterans to help ease the transition back to civilian life. While endowments of $25,000 or more will support the program, a $500,000 endowed gift would make VALOR self-supporting.

• The Student Aggie Veteran Enhancement Fund (SAVE) is an emergency fund awarded in times of crisis to help student veterans remain in school when financial circumstances threaten to force them to drop out. Donations at any level will help support this fund.

• The Aggie Shields program is a student organization that collects used textbooks to fill the Veteran & Dependent Textbook Loan Library, removing the financial burden of buying textbooks from veterans’ shoulders. During the past six semesters, Aggie Shields saved student veterans and their family members more than $314,800 in textbook costs. The program needs approximately $20,000 per year to operate. While gifts to support one or more years of operations are welcome, a $500,000 endowed gift would make the program self-supporting.

To learn more about supporting these programs or other student veteran resources, contact Dave Fujimoto ’17, director of development, at (979) 458-2634 or dfujimoto@txamfoundation.com.

Learn more

2019Thank You

When the Lead by Example campaign publicly launched in 2015, we asked our donors to imagine a grand vision for Texas A&M University: a vision in which the values that define our beloved university guide its evolution into a premier destination of higher learning. This last year, you remained steadfast in your commitment to make that vision a reality. As we enter the campaign’s final stage, we thank you for your endless enthusiasm, your humbling generosity and your undying dedication to the future of Texas A&M.