The Gift Process
Every year, the Foundation processes more than 20,000 gifts of all sizes. We value every gift and handle each one professionally and efficiently. Depending on the gift size and type, we take it through some or all of the following steps:
- We provide a gift agreement.
We provide gift agreements for all gifts and pledges of $25,000 or more. Agreements outline the purpose, form, schedule and administration of gifts. For smaller gifts, donors may document their preferences with pledge cards, letters or notes on their checks.
- We convert the gift to cash.
Non-cash gifts (securities or real estate) require special processing. The Foundation converts these gifts to cash.
- We place the gift in an account.
Every gift goes into an endowed or non-endowed operational account as specified by the donor. The Foundation disburses funds from accounts as defined by donors’ preferences.
- We send a receipt.
We mail a receipt for every gift. Receipts provide donors with proof of their contribution. If you have a question about a receipt, contact Ann Lovett ’81.
- We apply applicable fees.
Please note: These fees do not affect the portion of your donation
considered a charitable donation for IRS receipting and A&M giving
- To fund our operations, the Foundation applies a one-time, 5 percent development fee to gifts. For endowed gifts, the fee is charged when the gift is made and paid as earnings. For non-endowed gifts, the fee is charged and paid when the gift is made. The Foundation uses 4 percent to fund central operations and returns 1 percent to the generating colleges to support their specific development activities.
Please note: Certain gifts are exempt from this fee including, but not limited to, non-endowed scholarships.
- To offset fees from our credit card processors, the Foundation charges a fee (currently at 3 percent) for gifts made via credit card. For non-endowed gifts, the fee is charged and paid when the gift is made. For endowed gifts, the fee is charged against the future income earned in the account; the entire gift is recorded in the endowment principal.
- We disburse funds to Texas A&M.
If the gift is non-endowed, the Foundation disburses the entire gift as designated by the donor and when requested by the university. If the gift is endowed, we invest it until it has generated enough proceeds to fund the stipend and the benefiting university office requests a disbursement. For example, a scholarship endowment would accrue earnings for 18 months before Student Financial Aid could request the first stipend disbursement.