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re: NIL or TAF Donation Choice??

Posted on 2/4/22 at 9:53 am to
Posted by Chinese Bandit Boy
Member since Jun 2021
544 posts
Posted on 2/4/22 at 9:53 am to
quote:

So, why shouldn't we have a choice to donate to TAF or NIL during season ticket renewals etc? That would fix some of the shortfall.....


Great idea. From a business standpoint a NIL contribution is an advertising expense which can be written off 100%. That's a big plus since charitable philanthropic contributions are restricted to a percentage that can be deducted from income.

For a small business sole proprietorship or S corp you are talking about having to make a very large TAF contribution to get a tax benefit. The standard deduction for a couple this year is $25,900. That means that if you give $25,900 to TAF this year you would get no tax benefit because its the same amount as the standard deduction you already get. You deduct the higher of $29,500 or your donation to TAF but not both.

You may have seen commercials for your southern chevy dealers or ford dealers. In the same way a cooperative could be formed for tiger businessmen where you could pool small amounts given by individuals for advertising to be used for NIL. This would be an advertising expense in addition to $25,900 standard deduction. The problem is how do you get philanthropic points for putting up NIL "advertising dollars" to the co-op. The answer is that TAF can do anything it wants. Your money to the advertising co-op could be treated as "box tops" or "coupons" redeemed by TAF for philanthropic points. Sort of like the old green stamps!

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