Whether you own mineral rights, receive mineral royalties or both, your assets can make a profound difference for current and future Aggies through a donation to the Texas A&M Foundation.
Across the United States, the advent of horizontal drilling and hydraulic fracturing technologies have created a global oil and gas boom, most of which is taking place in Texas. There are several ways you can create an endowment for Texas A&M using mineral rights or royalties:
Term Royalty Deed:
There are both time-based and dollar-based royalty deeds. In a time-based deed, you transfer royalty interests for a specified period of time to fund a designated gift for Texas A&M, such as a scholarship. In a dollar-based deed, you transfer royalty interests until reaching a specified dollar amount. Benefits of both types include:
- You maintain ownership of your royalty interests.
- During the deed term, the royalties are sent directly to the Texas A&M Foundation, so you avoid income taxes on the royalties.
- At the completion of the royalty term, all royalties return back to you, the owner.
Cash generated from mineral royalties can support an outright gift or gifts like a charitable remainder trust or charitable gift annuity while also giving you a charitable deduction. However, you will still owe income taxes on the royalties since you received those royalties as income.
You can transfer your mineral and/or royalty interests to the Foundation after your lifetime via a will or living trust to be used for a designated purpose at the university.