How Alumni Dollars are Spent at the Association of Former Students of Texas A & M (Aggie Network)
The alumni association at Texas A & M is formally known as the Association of Former Students of Texas A & M and informally known as the Aggie Network. A tax-exempt, non-profit 501 (c), the Aggie Network’s mission is to strengthen the Aggie Network. How do they do this? The short answer is they raise revenue (about $30 million in 2020) and spend about 40% on programs (i.e. receptions, events, and other activities), 10% on general and administrative expenses and 10% on fundraising while the remaining funds (40%) are allocated to the general fund allowing the organization to accumulate $144 million in net assets.
The long answer is infinitely more interesting because of the detail. To set the stage, note the Form 990 (2020) reported the following details:
- The organization has 166 employees.
- There are 17 independent voting members (directors) of the governing body, 13 (76%) of whom are male while 4 (24%) are female.
- Total revenue was $30 million, most of which came from contributions, gifts, and grants ($22 million of which $4 million were non-cash contributions – publicly traded securities), investment income and royalties ($5 million), and ring commissions ($2 million).
- Expenses totaled $18 million with the specific expenses reported to be: compensation ($7 million), grants – to Texas A & M ($5 million), administrative and office expenses ($4 million), fees to outside vendors – primarily fundraisers and investment management ($1 million), and other expenses ($1 million).
- $12 million remained unspent and was allocated to the general fund along with $9 million in unrealized gains on investments allowing net assets to increase from $123 million at the beginning of the year to $144 million at year-end.
- The President/CEO, Porter S Garner III received $1,009,032 in compensation.
So, if you donated $100 to the Aggie Network, your donation was used as follows:
$100: Revenue
-$ 24: Compensation
-$ 17: Grants to Texas A & M
-$ 13: Administrative and Office Expenses
-$ 3: Fees to Outside Vendors – primarily fundraisers and investment management
-$ 3: Other Expenses (i.e. travel and conferences, membership recognition, etc)
-$ 60: Total Expenses
$ 40: Remaining Revenue: To General Fund
As illustrated above, $24 out of every $100 was spent on staff compensation while $19 out of every $100 was spent on administrative and office expenses, outside vendors and other expenses. $17 out of every $100 was given to Texas A & M. $40 out of every $100 was allocated to the general fund.
The big questions are: What does the Aggie Network need $144 million for? And, why does a small non-profit that raises $30 million annually give $1 million in compensation annually to it’s President/CEO?
To read the IRS Form 990 (2020), click here.
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