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From Captain John Maxham (Ret), '66
Vice President for Development
What a spectacular Winter Sports season we’ve enjoyed! The men’s basketball team won the NEWMAC tournament championship and went all the way to the Elite Eight of the NCAA Division III tournament. The women’s basketball team won the ECAC Division III championship, and the men’s swimming team won their third straight NEWMAC championship. A season of excitement to help us through a long, cold winter. Now, Billet Night and Spring Break are in the rear view mirror. Can graduation be far off? Go Bears!
Fundraising Update
Following another solid year in 2007, we began 2008 with a strong January and February, which included over $222,500 in donations. This continues a streak of 32 consecutive months with over $100,000 in donations dating back to June 2005. For 2008, the Association Board of Directors has set a strategic goal to raise $3 million, so we are off to a good start.
As usual, gifts from Alumni continue to provide the bulk of our financial support and represent approximately 75% of the gifts received. Parents, with terrific leadership from the Parents Association, have substantially increased their support over the years and now contribute about 15% of gifts received. The remaining 10% of gifts is received from Academy Friends.
After a record-breaking year for unrestricted giving in 2007, we are pleased to report nearly $30,000 in donations to the CGA TODAY! Unrestricted Fund in January and February. Our ability to continue raising unrestricted funds at a high level is a high priority for us, and we appreciate your response to our call for action.
President's Trophy
Congratulations once again to the Class of ’59 for winning the President’s Trophy for 2007. The trophy is awarded each year to the class donating the most financial support to the Association. The Class of ’59 won by a wide margin.
This year the Class of ’62 and the Class of ’64 are off to quick starts and a class from the nineties is in the top five for the first time. The Class of ’62, led by Carl Burkhart and Len Pichini, has a terrific murals project underway that adds greatly to the Academy’s history and traditions. Several of the murals are on display in the Alumni Center.
The top five classes in gifts to the Academy for 2008 are:
1962 1964 1949 1959 1992
Rounding out the top ten are:
1958 1974 1979 1971 1966
Planned Gifts
When most people think of planned gifts, they may think of wills and bequests. While that is the backbone of most planned giving programs, there are many other aspects to planned giving that provide benefits to the donor while also benefiting the Association and the Academy. Here are some details about plans that could provide you with income for life.
A Charitable Gift Annuity is a simple contract obligating the Association to pay a donor (or donors) a fixed amount of money for life in exchange for an irrevocable gift. American Council on Gift Annuities (ACGA) rates are used to set payments on annuities, which may be for one or two-lives (donor or donor and spouse). The Association now serves as trustee for and administers ten gift annuity contracts. As an example, a $10,000 gift annuity for a 65-year old person would return 6% or $600 each year. You can’t get that rate of return at a bank! There are also tax advantages for the initial gift and the Association benefits at the end of the contract.
A Charitable Remainder Trust is an irrevocable trust into which a donor transfers cash or property to a trustee in return for income paid to named beneficiaries for life or for a specified period of time. The Association may serve as trustee and outside counsel is normally used by the donor in drawing up the trust agreement. A minimum payout rate of 5% is required and payment would be similar to the example of the annuity above, as are the tax advantages for the initial gift. Two types of remainder trusts are common.
A Charitable Remainder Annuity Trust (CRAT) pays the donor a fixed dollar amount, at least annually, based on the initial value of the trust. This type of trust can be attractive to donors who want a fixed income and do not want to chance market volatility.
A Charitable Remainder Unitrust (CRUT) provides changing income payments to beneficiaries based on a fixed percentage of the trust value, which is revalued annually. As the trust grows through investment, annual payments will increase. Of course, the value of the trust may also decrease due to investment losses. This type of trust can be attractive to donors who hope to keep trust payments increasing each year to keep pace with inflation. The Association is trustee for and currently administers one CRUT.
If you would like more information about any of these planned gifts or would like further examples of how they might apply to your personal circumstances, please give me a call at (860) 442-2683, ext. 13.
Golf for Otto
Bill Thompson ’64, the Otto Graham Fund Chairman, has arranged a golf tournament in honor of Otto Graham to raise funds for the Otto Graham Athletic Legacy Fund. The Legacy Fund supports all aspects of the Coast Guard Academy athletic program. The Inaugural Otto Graham Athletic Legacy Fund Golf Classic will be held on June 26th at the Pautipaug Country Club in Baltic, CT. Save the date and join us at Pautipaug for some great golf and an opportunity to provide valuable support for CGA athletics.
Coastal Sail Training
One of the most valuable professional development experiences during a cadet’s time at CGA is the Coastal Sail Training Program. For twelve days during 2/c summer, 5-6 cadets embark with a safety officer on one of the Academy’s Luder yawls to sail New England’s coastal waters. The hands-on leadership and team work opportunities are great preparation for the cadets’ last two years as leaders in the Corps of Cadets. This type of experience is central to the Academy’s mission of producing leaders with “a liking for the sea and its lore.”
In the December 2007 issue of The Bulletin, there is an excellent article that provides more detail on the Coastal Sail Training Program and the Luder yawls used to conduct it. You remember those Luder yawls. At least if you were a cadet any time after 1970 you do! Those yawls were not new when the Academy acquired them and they are now over 40 years old.
One of the Superintendent’s top priorities is to purchase eight new 44’ sailing vessels, similar to those being built for the Naval Academy. This new fleet would provide every cadet the opportunity to experience coastal sail training. The purchase of these vessels will likely require a team effort among several organizations, including the Alumni Association. Stay tuned as further information on this important program develops.
On-line Contributions
Our secure, on-line system for giving to the Alumni Association has been active for the first two months of the year. During this time, 75 individuals used the system to give us nearly $15,000 in dues and donations. Visit our website www.cgaalumni.org and click on the red banner for “Donate or Renew Your Membership Online” to see why people have used this method over 2750 times to give more than $885,000 in dues and gifts since the system started in 2001. Jeff Anderson ’83 made the 2,700th system transaction on February 24th. To Jeff and everyone else who has used our on-line system to help us support the Academy – thank you!
Farewell Pete Dane
On February 22nd, Pete Dane left the Association to take a position as a major gifts officer at Eastern Connecticut State University. For nearly five years, Pete has provided excellent service to the Association as a Development Officer. His work with parents, younger alumni, the annual fund, and the Alumni Center brick program helped us move the Association’s development efforts to a higher level.
We wish Pete well in his new endeavors and thank him for his service. A search is underway to fill the vacant Development Officer position.
Tax Issues
The Alumni Association is a 501(c)(3) organization, existing exclusively for “educational and charitable” purposes, as defined by the Internal Revenue Service. This provision allows your gifts to the Association to be tax deductible as charitable contributions. While the motivation to provide financial support for the Academy goes well beyond any tax implications, it is nice to know that Uncle Sam provides some encouragement for doing so.
Every year, the IRS requires us to provide each donor who has given us a tax deductible gift of $250 or more during the year with a letter stating the amount given and the amount that is fully tax deductible. Membership dues and fees for merchandise or other services are not tax deductible and are not included in the total stated.
Each January, we send letters to qualified individuals showing the amount given during the preceding calendar year that is fully tax deductible. For example, if you gave $600 during the year, which included $72 for dues, your letter would indicate a total gift of $528. If you do not receive a tax letter from us but would like to receive one, please give me a call at (860) 442-2683, ext. 13 or send me an e-mail.
Thanks again for your continued generous support. Together we do make a difference!
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