National Collegiate Athletic Association
NCAA News Archive - 2007
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Opinions
The NCAA News
Mark Mallady, executive vice president
Collegiate Financial Services
Los Angeles Times
“Their thinking is that, ‘We’ve got donors giving us millions of dollars each year,’ But what happens when the donors die? Is there a plan or a policy to replace what they’ve been giving?”
Mike Holder, director of athletics
Oklahoma State University
The Daily Oklahoman
“Our supporters need to understand we don’t have this money today. We borrowed $20 million (to pay premiums on behalf of insured donors) and will pay interest on it. Down the road, our athletics department will be the beneficiary. But this does not address short-term needs. That has not changed at all.”
Brian C. Frerking, planned giving manager
12th Man Foundation
Texas A&M University
The Chronicle of Higher Education
“I could see us in the future doing something like this. The upfront cost of funding the policies with premiums is the biggest hurdle. And it’s funny, but a lot of times insurance policies don’t come around when you think they will. It’s like an extend-your-life guarantee. People will live a lot longer than you think they will.”
Stephen R. Leimberg, chief executive
Leimberg Information Services
The Chronicle of Higher Education
“As soon as you start borrowing money to finance these things, they become a lot less appealing. The more people have a chance to wet their beaks, the less chance the charity has of winning.”
David Onion, executive director of development
University of Texas at Austin
The Chronicle of Higher Education
“We have looked at that type of arrangement and deemed it not appropriate. We’re concerned about third-party involvement and the commissions. We also would worry that donors might stop making contributions for annual or major gifts when they did insurance gifts.”
Michael O’Neal, president
Oklahoma Christian College
The Daily Oklahoman
“Congress has discussed whether these plans should be tax-free charities. I think Congress is way off base. These are legitimate. A person can take out a policy and benefit whoever they want.
“One concern Congress has is brokers sometimes make huge dollars off the premiums. Congress doesn’t like somebody making a profit off a charitable transaction. I personally feel that these plans can work if a school looks at the fine print very closely.”
Joe Castiglione, director of athletics
University of Oklahoma
The Chronicle of Higher Education
“Several companies have contacted us about this option, but we haven’t made any final decision on anything, nor are we really comfortable with the concept itself.... It has a bad feel to it. Think of what you would have to generate annually just to cover the premiums. Don’t you think that could present problems when so many schools already are being subsidized by the university or state funds?”
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The NCAA News
Purchasing insurance on donors
Mark Mallady, executive vice president
Collegiate Financial Services
Los Angeles Times
“Their thinking is that, ‘We’ve got donors giving us millions of dollars each year,’ But what happens when the donors die? Is there a plan or a policy to replace what they’ve been giving?”
Mike Holder, director of athletics
Oklahoma State University
The Daily Oklahoman
“Our supporters need to understand we don’t have this money today. We borrowed $20 million (to pay premiums on behalf of insured donors) and will pay interest on it. Down the road, our athletics department will be the beneficiary. But this does not address short-term needs. That has not changed at all.”
Brian C. Frerking, planned giving manager
12th Man Foundation
Texas A&M University
The Chronicle of Higher Education
“I could see us in the future doing something like this. The upfront cost of funding the policies with premiums is the biggest hurdle. And it’s funny, but a lot of times insurance policies don’t come around when you think they will. It’s like an extend-your-life guarantee. People will live a lot longer than you think they will.”
Stephen R. Leimberg, chief executive
Leimberg Information Services
The Chronicle of Higher Education
“As soon as you start borrowing money to finance these things, they become a lot less appealing. The more people have a chance to wet their beaks, the less chance the charity has of winning.”
David Onion, executive director of development
University of Texas at Austin
The Chronicle of Higher Education
“We have looked at that type of arrangement and deemed it not appropriate. We’re concerned about third-party involvement and the commissions. We also would worry that donors might stop making contributions for annual or major gifts when they did insurance gifts.”
Michael O’Neal, president
Oklahoma Christian College
The Daily Oklahoman
“Congress has discussed whether these plans should be tax-free charities. I think Congress is way off base. These are legitimate. A person can take out a policy and benefit whoever they want.
“One concern Congress has is brokers sometimes make huge dollars off the premiums. Congress doesn’t like somebody making a profit off a charitable transaction. I personally feel that these plans can work if a school looks at the fine print very closely.”
Joe Castiglione, director of athletics
University of Oklahoma
The Chronicle of Higher Education
“Several companies have contacted us about this option, but we haven’t made any final decision on anything, nor are we really comfortable with the concept itself.... It has a bad feel to it. Think of what you would have to generate annually just to cover the premiums. Don’t you think that could present problems when so many schools already are being subsidized by the university or state funds?”
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