ANNUALFISCAL YEAR 2015-2016REPORT

FUNDING SCHOLARSHIPS, PROGRAMS

AND FACILITIES IN SUPPORT OF

CHAMPIONSHIP ATHLETICS

Board of Trustees

Frosty Gilliam Jr. ’80CHAIR

Odessa, Texas

Steve MorrisIMMEDIATE PAST CHAIR

Cypress, Texas

Chris Cooper ’89Chatham, New Jersey

Robert Dennis ’83Tyler, Texas

Randy Hale ’85Houston, Texas

Ray Huffines ’74Plano, Texas

John Schiller Jr. ’81College Station, Texas

Scott WoodwardDIRECTOR OF ATHLETICS

College Station, Texas

Cynthia B. “Cindy” Taylor ’84CHAIR ELECTHouston, Texas

Boyd Cherry ’67Bryan, Texas

Monty Davis ’77Cypress, Texas

David Dunlap ’83The Woodlands, Texas

Darryl Heath ’84Colleyville, Texas

Henry B. “Hank” Paup ’70Fort Worth, Texas

Mike Shaw ’68Fredericksburg, Texas

Skip WagnerPRESIDENT & CEOCollege Station, Texas

ADMINISTRATIONSkip Wagner President & CEOAmy Troha Executive Assistant to the President & Trustee LiaisonRandy Howard Senior Vice President of FinanceTerri McKee Director of AccountingLauren Pearce Director of Human ResourcesToni McDowell Manager of Gift ProcessingEsther Matthaei Coordinator or Gifts Processing & Donor RecordsSandra Bosse Receptionist

MAJOR GIFTSTravis Dabney Senior Vice President of Major Giving ProgramsJacob Green Vice President of Major Gifts and EndowmentsBrady Bullard Vice President of Major GiftsKelly Corcoran Vice President of Major GiftsClint Dempsey Vice President of Major Gifts & Planned GivingPatrick Wilson Manager of Development ServicesRachel Gillum Manager of Development Services

ANNUAL PROGRAMS/MEMBERSHIPElizabeth Greer Senior Vice President of Annual ProgramsSamantha Milroy Director of Annual ProgramsPhil LeFevre Manager of Annual ProgramsCassie Bell Manager of Annual ProgramsCallie Boenigk Manager of Annual ProgramsMatthew Reeser Manager of Member Service CenterAmber Barlaan Member Service Center RepresentativeMelissa Chavarria Member Service Center RepresentativeAdrienne Dewey Member Service Center RepresentativeDanielle Leary Member Service Center RepresentativeAubrey Rotello Member Service Center RepresentativeAubrie Schroeder Member Service Center RepresentativeDionysius Williams Member Service Center Representative

DONOR PREMIUM SERVICESMichael Solomon Vice President of Donor Premium ServicesBritton Douglass Director of Suites & ClubsShelley Nemec Director of Events & TravelHaley Clark Manager of Events & TravelLogan Kickham Manager of Suites & Clubs

INFORMATION TECHNOLOGYAmy Joyce Director of Data Analysis & Quality AssuranceChris Roberts PC Technician

MARKETING & COMMUNICATIONSMark Riordan Vice President of Marketing & CommunicationsTrue Brown Director of CommunicationsBrian Davis Director of Creative ServicesJon Lee Director of Digital Media

TICKET CENTERCarole Dollins Senior Vice President of TicketingTracy Treps Director of Priority TicketingWill Simpson Director of Ticket Operations & EventsShane Flater Ticket Systems & ReportsChris Carson Manager of Events & Internal SalesAmy Janac Senior Manager of Ticket Operations & EventsSylvia Fecht Senior Manager of Ticket ServicesDaniel Timberlake Director of Ticket SystemsGina Rice Executive Administrative CoordinatorKatelyn Rather Manager of Priority Ticketing

Mailing Address: 12th Man FoundationP.O. Box 2800College Station, TX 77841

Main Office Line: (979) 846-8892Ticket Center: (979) 845-2311www.12thmanfoundation.com @12thManFndtn

12thMF

A Word of Gratitude .....................................4

Statement of Financial Position ................6

Statement of Activities ...............................7

Endowment Value and Distribution ..........8

Major Gifts ....................................................9

Annual Giving ............................................ 10

Ticketing ..................................................... 13

E. King Gill Award ..................................... 14

Donor Membership Groups ..................... 15

Contents

The annual report figures were compiled based upon data from the 12th Man Foundation’s most recently completed fiscal year (July 2015 through June 2016)

FUNDING SCHOLARSHIPS, PROGRAMS

AND FACILITIES IN SUPPORT OF

CHAMPIONSHIP ATHLETICS

As of June 16, 2017

ANNUAL REPORT FY15-164

A Word of GratitudeYou make a difference.

That phrase seems like the most appropriate way to begin our Annual Report. It is succinct and to the point, and above all else it is fitting and relevant to everything you will read in the following pages. This report is our way of showcasing to you, our donors, the magnificent impact you make on the athletic department of Texas A&M University.

The data contained in this publication, our first annual report, details our most recently completed fiscal year—July 2015 through June 2016 (FY15-16). In future years, we are committed to providing an Annual Report in a timely manner in order to provide clear and concise information about how your financial resources are being used.

The information in the following pages is meant to educate and inform you about how your donations make a difference, and my guess is you will be fascinated by much of this data. As you will see, financial assistance to A&M athletics flows through the 12th Man Foundation at a remarkable rate. In the most recent fiscal year, more than $31 million in annual donations was passed through to support athletics. When combined with nearly $45 million for capital projects, former students and friends of the university provided roughly $76 million to ensure Texas A&M’s 602 student-athletes have the proper resources to learn, train, compete and win. You can see how vital donations are to maintain an Athletics Department with a recurring annual budget of approximately $135 million.

I hope you take great pride in seeing Aggie student-athletes excel. Whether it be through winning championships, earning diplomas or volunteering in the local community, these young men and women make us all proud to wear maroon and white. Much of this would not be possible without the constant generosity of donors to the 12th Man Foundation. Truly, you are the pillars of this department’s success.

The 12th Man Foundation is a non-profit 501(c)(3) organization. We exist to serve Texas A&M Athletics by fundraising for scholarships, programs and facilities in support of one of the premier athletic departments in the nation. The landscape of college athletics is one that is constantly evolving, and Foundation donors help provide A&M leadership with the resources they need to keep our school at the forefront of not only the Southeastern Conference, but the nation as well.

The 2015-16 year was one that featured some landmark moments for both this organization and Texas A&M Athletics. First and foremost was the completion and grand opening of redeveloped Kyle Field. The two-year-long construction project concluded in time for Aggie football’s 2015 season opener. Some of the superlatives from the project are still eye-opening today: 29 million pounds of structural steel, 1.6 million bricks, 2.7 million linear feet of wire, 30,000 gallons of paint, 1,300 stairs

ANNUAL REPORT FY15-16 5

Gig ’em!

Skip WagnerPresident & CEO

installed…the list goes on and on. As we anticipated, our generous donors eagerly supported the project. A grand total of $230 million has been committed to the Kyle Field redevelopment, a $485 million project. The result is the finest college football stadium in the country and one that is the crown jewel of college athletics.

A&M’s forward-thinking administration did not wait long to announce two more significant projects. In April 2016, new stadium construction plans for softball and track and field were announced, and the 12th Man Foundation eagerly supported both endeavors for these championship-level programs. The Foundation committed $25 million in reserve funds to make construction a reality, and we also agreed to embark on an aggressive fundraising campaign to raise an additional $18 million in donor contributions. Construction is currently underway for these stunning new stadiums and will be complete in 2018.

All the while, the 12th Man Foundation remained steadfast in its implementation of a strategic plan that was adopted in 2014. A significant portion of that plan revolves around the new world in which the Foundation now operates with redeveloped Kyle Field. We take our charge very seriously to help deliver a game day experience that is on par with what should be expected of such a magnificent venue.

As many of these events were happening, Texas A&M announced in January 2016 that it had hired Scott Woodward to be the school’s new Director of Athletics. This allowed the Foundation an opportunity to continue its history of building strong relationships with Athletics Department leadership. Aligning donor interests and Athletics’ priorities is critical for the success of both entities. Ultimately, a strong affiliation between the 12th Man Foundation and all aspects of the University, including President Michael K. Young, will ensure the long-term success of this organization and Aggie Athletics.

Clearly, there have been many things to celebrate in recent years around the 12th Man Foundation and A&M Athletics. Please know that our hard-working staff is eager to continue its part in producing a championship-level donor experience to go along with the championship-level performances our student-athletes regularly exhibit. We can assure you that your financial contributions have been felt in many positive ways by student-athletes and staff all across this high-achieving department.

Thank you for your continued support.

ANNUAL REPORT FY15-166

ASSETS 2016 2015Current AssetsCash and cash equivalents $17,173,911 $15,700,933 Accounts receivable $1,398 $98,921 Pledges receivable, net $46,276,039 $21,389,857 Investments $96,814,092 $117,298,119 Prepaid expenses $239,530 $144,150 Total Current Assets $160,504,970 $154,631,980

Property & equipment $5,534,921 $5,068,556 Accumulated depreciation $(1,872,338) $(1,612,988)Net Property and Equipment $3,662,583 $3,455,568

Other AssetsInvestments $79,754,792 $83,532,552 Pledges receivable, net $39,925,345 $58,597,434 Memberships $32,000 $32,000 Total Other Assets $119,712,137 $142,161,986

Total Assets $283,879,690 $300,249,534

LIABILITIES 2016 2015Current LiabilitiesAccounts payable $1,439,685 $4,303,535 Deferred income $2,252,411 $1,851,594 Current maturities on long-term debt $952 $16,351 Total Current Liabilities $3,693,048 $6,171,480

Long-Term LiabilitiesDeferred income $535,722 $500,514 Long-term debt exclusive of current maturities --- $1,737 Total Long-Term Liabilities $535,722 $502,251

Total Liabilities $4,228,770 $6,673,731

NET ASSETS 2016 2015Unrestricted $64,799,986 $58,055,095 Temporarily restricted $168,685,606 $191,931,482 Permanently restricted $46,165,328 $43,589,226 Total $279,650,920 $293,575,803

Total Liabilities and Net Assets $283,879,690 $300,249,534

Statement of Financial Position

ANNUAL REPORT FY15-16 7

Statement of Activities

UNRESTRICTED TEMPORARILY RESTRICTED

PERMANENTLY RESTRICTED

YEAR ENDED JUNE 30, 2016

TOTAL

YEAR ENDED JUNE 30, 2015

TOTAL

Support and RevenuesContributions $42,758,225 $35,830,937 $2,576,102 $81,165,264 $78,741,681 Investment income

$397,738 $(2,319,481) --- $(1,921,743) $(849,821)

Miscellaneous income

$2,364,005 $471,394 --- $2,835,399 $2,558,844

Loss on dispostion of assets

--- --- --- --- $(320,892)

Assets released from restrictions

$57,228,726 $(57,228,726) --- --- ---

Total Support and Revenues

$102,748,694 $(23,245,876) $2,576,102 $82,078,920 $80,129,812

Expenses and TransfersContributions-TAMU-facilities

$44,906,738 --- --- $44,906,738 $77,285,553

Contributions-TAMU-annual

$31,240,284 --- --- $31,240,284 $12,445,940

Contributor costs

$3,913,925 --- --- $3,913,925 $4,502,414

Fundraising $6,215,090 --- --- $6,215,090 $4,513,980 Fiscal and administrative

$3,366,908 --- --- $3,366,908 $2,506,373

Allowance for Bad debt

$6,060,860 --- --- $6,060,860 $26,675,215

Depreciation $299,998 --- --- $299,998 $263,474 Total Expenses and Transfers

$96,003,803 --- --- $96,003,803 $128,192,949

Change in net assets

$6,744,891 $(23,245,876) $2,576,102 $(13,924,883) $(48,063,137)

Net assets at beginning of period

$58,055,095 $191,931,482 $43,589,226 $293,575,803 $341,638,940

Net assets at end of period

$64,799,986 $168,685,606 $46,165,328 $279,650,920 $293,575,803

$76,147,022 TRANSFERED

TO A&M ATHLETICS

The 12th Man Foundation transfers funds annually to Texas A&M Athletics.

TRANSFER TO ATHLETICS AMOUNT BOND MATURITY DATE

Contributions for Facilities $44,906,738 N/A

Annual Transfer $10,812,000 N/A

Kyle Field Bond Payment $16,200,000 November 2044

Zone Bond Payment $3,050,000 May 2020

Bright Building Bond Payment $890,000 May 2025

Blue Bell Park Bond Payment $288,284 May 2043

The 12th Man Foundation’s endowment funds are invested by the Texas A&M Foundation.

The Foundation pays out 4.5 percent annually to the 12th Man Foundation based upon

expected long-term earnings to be derived from the Foundation’s investments on our behalf.

ENDOWMENT FUNDS BALANCE AS OF 6-30-16 DISTRIBUTION

12th Man Endowment $57,083,486 $2,662,149

Football Scholarship Fund $1,273,470 $23,961

Women’s Golf Scholarship Fund $48,623 $1,323

Baseball Scholarship Fund $311,498 $7,227

Tobi Oyedeji Endowment $62,710 $2,924

Men’s Basketball Scholarship Fund $131,161 $2,868

Swimming & Diving Scholarship Fund $618,653 $28,579

Unrestricted Scholarship Fund $119,939 $2,511

Center for Student Athlete Services $97,582 $3,668

Women’s Basketball Scholarship Fund $24,311 $661

Women’s Soccer Scholarship Fund $48,623 $1,323

Endowment Value and Distribution

This list is a portion of the 41 endowment funds maintained by the 12th Man Foundation

ANNUAL REPORT FY15-16 9

The 12th Man Foundation Major Gifts department includes a team of fundraisers who are tasked with engaging former students and friends of Texas A&M who wish to support athletics at the highest level. Major gifts are given to support capital improvement projects, student-athlete scholarships or direct support for a particular sports program.

The numbers below account for pledges committed during FY15-16.

Major Gifts

Planned gifts are typically after-life gifts established through a donor’s estate plan.

These include direct bequests, gifts of appreciated assets, IRA distributions, life insurance, trusts, annuities, property or cash.

Planned Giving

$14,109,548TOTAL AMOUNT OF CAPITAL, ENDOWMENT

AND PLANNED GIVING

$832,124TRACK & FIELD

$5,343,000PLANNED GIVING

$881,074OTHER

$1,754,2301922 FUND

$4,486,770SOFTBALL

$812,350UNRESTRICTED

ANNUAL REPORT FY15-1610

Annual GivingAnnual fund donations, which include gifts tied to purchasing seats at Aggie athletic venues, help furnish a significant portion of Texas A&M’s athletic budget.

The 12th Man Foundation had 19,544 active donors in calendar year 2016 in 46 states and nearly all of the 254 counties in the state of Texas. Below is a glimpse of where our donors are located.

WA

OR

CA

NX

ID

MT

WY

UT

AZ

CO

NM

TX

AK

HI

KS

NE

SD

ND

MN

IA

MO

IL

WIMI

INOH

VT

NHMA

RI

NJPA

NYCT

ME

DEMD

OKAR

LA

MSAL

TN

KY

WVVA

NC

SC

GA

FL

WEST432

MIDWEST268 NORTHEAST

165

SOUTH770

TEXAS17,748

92PERCENT OF

ACTIVE MEMBERS LIVE IN TEXAS

Excluding 161 active accounts without state residency information

19,544ACTIVE MEMBERS OF

THE 12TH MAN FOUNDATION

$2,188AVERAGE ANNUAL GIFT

(INCLUDING TICKET DONATIONS)

BRAZOS1,352

DALLAS481

TRAVIS332 BEXAR

325

COLIN233

WILLIAMSON177

HARRIS2,046

FORT BEND278

MONTGOMERY183

GALVESTON137

4.6PERCENT OF LIVING GRADUATES DONATE

TO THE 12TH MAN FOUNDATION

28PERCENT OF ACTIVE

MEMBERS LIVE IN THESE 10

TEXAS COUNTIES

While donations received by the 12th Man Foundation help place Texas A&M in rare air among all Division I programs, you may be surprised to learn that less than 5 percent of living former students are active members of the 12th Man Foundation.

11,829ACTIVE MEMBERS

WITH SEASON TICKETS

427,313LIVING TEXAS A&M GRADUATES

AS OF MAY 2017

7,715ACTIVE MEMBERS

WITHOUT SEASON TICKETS

ANNUAL REPORT FY15-1612

Below is a breakdown of annual donations to the 12th Man Foundation during FY15-16. Annual donations consist of philanthropic gifts as well as contributions tied to season ticket purchases.

$1,191,114MEN’S AND WOMEN’S BASKETBALL

SEASON TICKET DONATIONS

$441,210BASEBALL SEASON TICKET

DONATIONS

Annual Giving

$38,532,829KYLE FIELD SEASON TICKET DONATIONS

23%SUITES

2% LOGE BOXES

10%ZONE CLUB

20%ARMCHAIR

12%BENCH SEATS

20%ALL-AMERICAN CLUB

13%LEGACY CLUB

$42,758,225 TOTAL AMOUNT OF

ANNUAL DONATIONS

$2,593,072PHILANTHROPIC ANNUAL GIVING

$413,809MVP DONORS

$2,179,263ANNUAL FUND

ANNUAL REPORT FY15-16 13

Revenue generated by ticket sales is another vital piece of the Texas A&M athletic budget.

Below are some statistics from A&M’s venues concerning the 2015-16 athletic seasons.

Ticketing

$1,191,114MEN’S AND WOMEN’S BASKETBALL

SEASON TICKET DONATIONS

$42,283,201TICKET REVENUE TRANSFERRED

TO TEXAS A&M ATHLETICS

SEASON TICKETS SOLD

AVERAGE ATTENDANCE

FOOTBALLKyle Field

103,62293,529

MEN’SBASKETBALL

Reed Arena

8,2283,847

BASEBALLBlue Bell Park

5,2412,706

WOMEN’SBASKETBALL

Reed Arena

4,8542,556

SOCCEREllis Field

2,994494

INDOOR TRACK & FIELD

Gilliam Indoor Track Stadium

1,632208

VOLLEYBALLReed Arena

1,612330

SOFTBALLAggie Softball

Complex

931337

TENNISMitchell Tennis

Center

309116

1stIN THE SEC

2ndIN THE NCAA

3rdIN THE NCAA

33,799STUDENT SPORTS PASSES

SOLD IN 2015-16Kyle Field season tickets sold (shown above)

includes student sports passes sold

E. King Gill AwardEstablished in 2011, the E. King Gill Award is presented annually to a person or family who has been an influential investor and ambassador for Texas A&M Athletics.

The prestigious award honors supporters who have generously helped the 12th Man Foundation realize its mission of funding scholarships, programs and facilities in support of championship athletics. The recipient is selected based on financial commitment, exemplary service and leadership as a volunteer advocate, ethics, and a high level of distinction as a role model.

The honorees of this prestigious award are recognized on an engraved plaque in The Zone’s Stepp Grand Lobby, located just outside the 12th Man Foundation offices.

Previous E. King Gill Award Honorees

2011 Col. George J. Eppright ’26 Carolyn & Jack E. Little ’60

2012 Kay & Jerry S. Cox ’72

2013 Judith & Weldon Jaynes ’54

2014 Alice & Erle A. Nye ’59

2015 Dorothy & Artie R. McFerrin ’65

2016 Susan ’13 & Sam ’70 Torn

ANNUAL REPORT FY15-16 15

Champions CouncilSince its inception in 2004, Champions Council has served as a prestigious, invitation-only membership that provides unmatched access to Texas A&M Athletics for our most devoted supporters. Membership is reserved for friends of A&M Athletics who have committed a gift of $50,000 or more (payable over a five-year period) to a current capital project or a philanthropic academic or program endowment above and beyond the donor’s requirement for season tickets.

Diamond Champions CouncilDiamond Champions Council members have made a gift of $1,000,000 or more to a capital project or endowment supporting Texas A&M Athletics, and the landscape for Texas A&M has improved dramatically thanks to this unique and select group of 12th Man Foundation donors. Their support is unparalleled and has led to success both on and off the field for Texas A&M student-athletes. Truly, this group represents a devoted segment of former students and friends who have played a lead role in pushing A&M to the forefront in college athletics.

Eppright Distinguished Donors SocietyDonors to the 12th Man Foundation routinely answer the call to support Texas A&M Athletics. Whether it be through a lifetime of devoted donations or a single transformational gift, many friends of Texas A&M have displayed an unyielding commitment to raise the profile of Aggie Athletics. The Eppright Distinguished Donors Society recognizes individuals and businesses that have contributed $100,000 or more in support of A&M’s athletic programs. These dedicated donors have graciously shaped the present and future of our university. 

John David Crow Legacy SocietyThe John David Crow Legacy Society is the 12th Man Foundation’s organization for the recognition of those who make gifts in support of Texas A&M Athletics through their estate plans. Named in honor of the first Heisman Trophy winner in Texas A&M’s storied football history, John David Crow Legacy Society members are forever recognized on a wall of honor in the lobby of the Bernard C. Richardson Zone at Kyle Field.

Athletic AmbassadorsThe Athletic Ambassadors program exists to raise awareness and support for the 12th Man Foundation and its mission of supporting championship athletics through annual and capital fundraising campaigns. Ambassadors are welcomed to a members-only gathering during the year where they hear insights into the A&M athletic department and interact with student-athletes, coaches and athletics staffers. The meeting rotates locations across the state (and occasionally out-of-state). This unique donor group represents some of A&M Athletics’ most fervent, passionate supporters.

Donor Membership Groups

12th Man Foundation | PO Box 2800 | College Station, TX 77841 | www.12thmanfoundation.com

FUNDING SCHOLARSHIPS, PROGRAMS AND FACILITIES IN SUPPORT OF

CHAMPIONSHIP ATHLETICS