Amid rising unemployment and vanishing jobs, higher education has moved front and center as a vital solution for displaced workers and students looking to acquire the training and skills to compete in the global marketplace. First Command Educational Foundation is responding with scholarships and financial literacy programs dedicated to financial wellness and independence.

“Large proportions of our population face major financial hurdles in pursuing advanced education and career training,” says Vickie Mauldin, executive director of the foundation. “There is no escaping the fact that college costs are rising. The cost of tuition for private four-year institutions is up 5.9 percent from last year and 6.4 percent for public four-year colleges. If the current trend continues, how are American families going to finance a college education? We must focus on helping Americans acquire the in-demand skills they need to compete for the jobs of the future.”

» A historic mission
First Command Educational Foundation was established in 1983 with a mission to provide scholarships for military personnel and their families. In recent years the foundation has expanded its reach to include the general public. More than $3.9 million in scholarships have been awarded to more than 2,200 individuals seeking associate, undergraduate and graduate degrees, professional certifications, and trade school diplomas. The scope of the program has grown significantly with the addition of several new scholarships and community partners, pushing this year’s awards total to more than $230,000.

For the first time in the foundation’s history, scholarships are being offered to participants in local financial literacy programs that target transitioning and at-risk populations, the Hispanic community and secondary and post-secondary students. The Donaldson D. Frizzell Scholarship, the first scholarship the foundation has administered in-house, is open to eligible traditional students and adult continuing-education students. The foundation continues its commitment to the lives of First Command clients and their local communities by awarding scholarships nationally through First Command field offices.

Looking ahead, the post-recession economy will continue to demand even more college-educated workers. According to The Challenge to States: Preserving College Access and Affordability in a Time of Crisis, a report recently published by The National Center for Public Policy and Higher Education, each of the 50 states and their colleges will only make existing problems of access, affordability, equity and economic competitiveness worse if they follow past patterns of responding to revenue decreases by shifting the burden to American students and families.

“We are committed to relieving the burden on American families by continuing to provide funding for higher education to hardworking students in need,” Mauldin says. “The unyielding support of donors and community partners will ensure the sustainability and growth of our scholarship initiatives and programs for years to come.”

» Teaching Americans about money
Financial literacy is a top priority at the foundation, which has continued to expand its educational impact and reach.
The foundation presents seminars to facilitate the professional development of military financial counselors and is expanding that curriculum to provide training for counselors affiliated with nonprofit community organizations. It is also committed to providing financial literacy education for public schools and open enrollment charter schools.

Every year the foundation staff and volunteers conduct free financial literacy education on diverse topics ranging from budgeting and savings to investments and asset allocation. To date it has provided more than 500 presentations, seminars and workshops to more than 44,000 individuals in business, high schools, community colleges, universities and community organizations.

Educating high school youth is a major focus. The foundation has developed Money Matters, a state-approved high school curriculum for Texas high schools. This school year, the program will reach more than 34,000 students. The reach of Money Matters will expand in the 2010-2011 school year to touch every high school senior in the state of Texas, benefiting more than 320,000 students.

The curriculum consists of 12 high-energy, youth-focused magazines covering topics that range from basic banking to stocks and investment, in a manner that provides students a comprehensive insight and understanding of their financial future.

Other recently developed programs include:

» La salud de mi dinero.
This program is a joint effort between the foundation and Texas Credit Union in Fort Worth, Texas. The goal of La salud de mi dinero is to develop a culturally relevant financial education curriculum to help improve money management behaviors in the Hispanic community of Tarrant County. It will be uniquely designed to address the financial literacy needs of the community through innovative and proven concepts.

» Home School Communities in Dallas/Fort Worth.
During a three-day workshop, foundation staff and volunteers with industry expertise instructed over two dozen homeschooled teens. The presentations and learning exercises were designed to help increase the already substantial knowledge base of the students. Participants were also given the opportunity to create their own interactive learning experiences to demonstrate their comprehension of the topic.

» Greek Row to Financial Pro.
This program began in the fall semester of 2008 to help university students and other young adults understand the importance of obtaining and maintaining above standard credit ratings. The information provided in the curriculum gives students valuable inside information about the credit industry and explains ways to manage their own credit accounts.

» The power of giving

As a public charity, First Command Educational Foundation is independent of First Command Financial Services and welcomes individual donations. A planned gift allows a donor to designate a philanthropic gift to a charity. Potential benefits for the donor include:

• A current income tax deduction.
• Increased cash flow from an asset, sometimes at more advantageous tax rates.
• Professional management of assets relied upon for income.
• Gift and estate tax savings.

The most common planned gift is a charitable bequest, a provision in one’s will or living trust that provides for all or a portion of the estate to pass to the charitable organization. A charitable bequest can also reduce federal estate taxes, which directly benefits heirs and loved ones. The Giving USA Foundation, which tracks charitable giving patterns in the United States, reported that bequests made up 7 percent of all giving in 2008.

The foundation’s planned giving program started in 2007 and has already been designated as a beneficiary of several forms of planned gifts. Shortly after the program began, Paul and Susan Smith, clients of First Command Financial Planning, revealed they made provisions for a charitable lead trust to benefit the foundation. A charitable lead trust is a trust that is created by a donor to pay income to a charity during the trust term, after which the principal then passes either back to the donor or to another beneficiary, in this case, the Smiths’ three grandchildren. Unlike the standard planned gift arrangement that results in a charitable income tax deduction, the lead trust provides both gift and estate tax deductions.

“We are forever grateful to Paul and Susan for this amazing gift, and the support it will bring in years to come,” Mauldin says.

In recent years the foundation has greatly diversified its funding sources to include grants and support from a variety of private, business and community organizations. It regularly participates in the Combined Federal Campaign, which enables federal civilian, postal and military employees to make donations through the workplace to accepted charities. (The foundation’s Combined Federal Campaign identification number is 11479.)

“When we reflect on our proud history, we realize that we remain strong and prosperous thanks to the sustained support and generosity of First Command and its Financial Advisors, employees and clients,” Mauldin says. “Over the years, the economy has changed, the Advisor force has changed, the First Command Home Office has changed and those we serve have changed. But one thing remains steadfast: the support we receive from the First Command family. We thank all of our donors for ensuring our continued stability and prosperity.”

First Command Educational Foundation is a 501(c)(3) public charity. It is not affiliated with First Command Financial Services, Inc., or any of its affiliated entities.

» Making a donation

Individuals interested in exploring the different types of planned giving vehicles (and the potential benefits for themselves and their heirs) should visit the First Command Educational Foundation’s web site at www.FCEF.com. This easy-to-use resource includes a reference section with information on making sound planned giving decisions. For more information about donations and planned gifts, contact FCEF at edufoundation@fcef.com or 877.872.8289.