1 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

2 AFCA/AFCF VISION OUR GOALS l To provide for education of American football coaches to better serve the public through l role modeling and character development for young men and women l enhancement of their technical skills and coaching capabilities

3 AFCA/AFCF STRUCTURE OUR LINE-UP l To provide funding for the American Football Coaches Association & the American Football Coaches Foundation in a number of different ways

4 AFCA/AFCF STRUCTURE OUR LINE-UP l The American Football Coaches Association is a tax exempt trade association l Contributions to the AFCA do not qualify for an income tax charitable deduction to the donor

5 AFCA/AFCF STRUCTURE OUR LINE-UP l The American Football Coaches Foundation is a publicly supported, tax exempt charity l Contributions to the AFCF qualify for income tax charitable deduction for donor l Revenue generation activities should be structured to maintain publicly supported charity status of AFCF

6 AFCA/AFCF STRUCTURE OUR LINE-UP l The Rule l More than 1/3 of total support must come from a broad representation of the “public”. l Reviewed by IRS over the initial 5 year period and on a 4 year moving average thereafter.

7 AFCA/AFCF STRUCTURE OUR LINE-UP l What is “public” support? l Includes contributions of many kinds and bequests under wills from a broad range of contributors.

8 AFCA/AFCF METHOD OUR GAME PLAN l Gift of Cash to AFCF l AFCF has immediate use of cash l Donor receives income tax charitable deduction equal to cash gift

9 AFCA/AFCF METHOD OUR GAME PLAN l Gift of Appreciated Property - real estate, stock, other property - to AFCF l AFCF has immediate use of asset l Donor receives income tax charitable deduction equal to asset’s value l Donor does not pay income tax on the property’s increased value

10 AFCA/AFCF METHOD OUR GAME PLAN l Bequest in Will l Donor names AFCF as beneficiary in Will l Bequest not subject to tax in donor’s estate l Bequest can be cash, real estate or other property

11 AFCA/AFCF METHOD OUR GAME PLAN l Life Insurance l Donor owns life insurance policy and names AFCF as beneficiary l AFCF receives policy proceeds upon donor’s death l Proceeds not subject to tax in donor’s estate

12 AFCA/AFCF METHOD OUR GAME PLAN l Life Insurance (continued) l Donor names AFCF owner of life insurance policy l Donor makes annual cash gifts to AFCF for premiums and receives income tax charitable deduction l AFCF receives policy proceeds upon donor’s death l Proceeds not subject to tax in donor’s estate

13 AFCA/AFCF METHOD OUR GAME PLAN l Retirement plan benefits/IRA l Donor names AFCF as beneficiary of Retirement Plan Benefits/IRA l AFCF receives benefits upon donor’s death l Benefits not subject to tax in donor’s estate

14 AFCA/AFCF METHOD OUR GAME PLAN l Charitable Remainder Trust l Donor creates and gifts property to trust l Income tax-exempt trust provides annual payment to donor for life l AFCF receives trust assets upon donor’s death l Trust assets are not subject to tax in donor’s estate

15 AFCA/AFCF METHOD OUR GAME PLAN l Charitable Lead Trust l Donor creates and gifts property to trust during donor’s life l Income taxable trust makes deductible annual payments to AFCF for term of years l Donor’s family receives trust assets at end of AFCF’s payment term l Trust assets not subject to tax in donor’s estate

16 SUMMARY FINAL SCORE l With the proper implementation of our Game Plan l AFCA and AFCF meet their goals. l Donors receive charitable tax deductions for gifts to AFCF.