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Nonprofit NIL Collectives just took a hit
Posted on 6/9/23 at 3:13 pm
Posted on 6/9/23 at 3:13 pm
"Consequently, it is the view of this Office that many organizations that develop paid NIL opportunities for student-athletes are not tax exempt and described in section 501(c)(3) because the private benefits they provide to student-athletes are not incidental both qualitatively and quantitatively to any exempt purpose furthered by that activity."
Texas A&M will not be happy... They were trying to establish a tax-exempt NIL program.
IRS Guidance
Texas A&M will not be happy... They were trying to establish a tax-exempt NIL program.
IRS Guidance
This post was edited on 6/9/23 at 3:14 pm
8
Posted on 6/9/23 at 3:24 pm to MintBerry Crunch
quote:
Texas A&M will not be happy
bullshite, they’ll always be gay.
Posted on 6/9/23 at 3:31 pm to MintBerry Crunch
Good.
Posted on 6/9/23 at 4:24 pm to MintBerry Crunch
The IRS vs TX A&M... Hard to pick a side
Posted on 6/9/23 at 4:34 pm to MintBerry Crunch
quote:
Consequently, it is the view of this Office that many organizations that develop paid NIL opportunities for student-athletes are not tax exempt and described in section 501(c)(3) because the private benefits they provide to student-athletes are not incidental both qualitatively and quantitatively to any exempt purpose furthered by that activity."
Sir, this is a Wendy’s
This post was edited on 6/9/23 at 4:36 pm
Posted on 6/9/23 at 4:42 pm to MintBerry Crunch
This should not be tax exempt. They should learn the hard lessons of taxation and maybe they will be wiser in some of the causes they support.
Posted on 6/9/23 at 4:44 pm to MintBerry Crunch
For all the supposed under-the-table cash being handed out for decades in the pre-NIL era, I don’t recall a single athlete or donor being arrested or charged with tax evasion, structuring, money laundering, etc.
Always wondered about that.
Always wondered about that.
Posted on 6/9/23 at 4:53 pm to MintBerry Crunch
If I had to bet, I would bet the CCM will be followed if litigated.
But it is not a slam dunk. Most of the cited cases/ruling are distinguishable because they deal with benefits outside what the supported organization does. Goldsboro and Ginsburg are inapposite.
The unaddressed issue is the broader exemption for college athletics. If deductible contributions cannot support acquisition of player rights, then why can they support many other things they support. E.g, fancy facilities or expensive coaches?
I have long doubted whether Congress would tolerate a direct attack on college athletics. This CCM is not consistent with general exemption. But, the area (indeed all of law) is fraught with inconsistencies. It will make for an interesting classroom discussion this fall.
But it is not a slam dunk. Most of the cited cases/ruling are distinguishable because they deal with benefits outside what the supported organization does. Goldsboro and Ginsburg are inapposite.
The unaddressed issue is the broader exemption for college athletics. If deductible contributions cannot support acquisition of player rights, then why can they support many other things they support. E.g, fancy facilities or expensive coaches?
I have long doubted whether Congress would tolerate a direct attack on college athletics. This CCM is not consistent with general exemption. But, the area (indeed all of law) is fraught with inconsistencies. It will make for an interesting classroom discussion this fall.
Posted on 6/9/23 at 4:58 pm to uftiger
quote:
It will make for an interesting classroom discussion this fall.
They will be lining up for that one.
Posted on 6/9/23 at 4:59 pm to jflsufan
I typically have about 35 post-doc students in my tax exempt class, so yes I think they will.
Many tax lawyers seek to learn about the area. This is an important topic.
Many tax lawyers seek to learn about the area. This is an important topic.
This post was edited on 6/9/23 at 5:02 pm
Posted on 6/9/23 at 5:08 pm to B00M
quote:Wow, so much wrong with this statement.
This should not be tax exempt. They should learn the hard lessons of taxation and maybe they will be wiser in some of the causes they support.
1. The money paid by the collective to the student-athlete is taxable income to the student-athlete and is reportable as same on their individual income tax returns.
2. The biggest impact of collectives being denied non-profit status would fall on the boosters who fund the collective. Said boosters are currently deducting their contributions to these non=profit collectives as charitable contributions on their individual income tax returns, thusly receiving the tax break on their contributions. What hard lessons of taxation would they be learning from collectives losing their non-profit status?
Posted on 6/9/23 at 5:11 pm to Curtis Lowe
Good post; sorry to quibble but it is exempt status, not non-profit status. Nothing requires an exempt charity to be “non-profit.”
Posted on 6/9/23 at 7:38 pm to LSUcajun77
quote:
Texas A&M will not be happy
bullshite, they’ll always be gay.
Well done.
Posted on 6/12/23 at 9:37 am to MintBerry Crunch
UFtiger, I'd be interested to hear your thoughts on the best way to make an NIL collective tax exempt, if it is even possible.
Posted on 6/16/23 at 9:07 am to uftiger
I'd love to continue this discussion offline uftiger.
Email me rex0.crooked@icloud.com
Email me rex0.crooked@icloud.com
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