Fc NIl collectives not tax deductible?? The IRS says no Linkage

[s1uggo72]

but really what do they know

IRS says NIL collectives are not tax exempt

One of the perceived benefits of giving money to one of the many NIL collectives that have emerged in recent years is that the donation possibly becomes a write off.

profootballtalk.nbcsports.com

 

[DELion]

NIL funds are distributed as for-profit payments to student athletes. Under no circumstances should they be considered tax-exempt. The IRS has this right (and I am no fan, in general, of the IRS).

 

[EricStratton-RushChairman]

This will serve as a great lesson for the spoiled college kids of today... introduce them to the Mr. FICA

 

[PSUJam]

TAX-DEDUCTIBLE DONATIONS
CAN I MAKE A TAX-DEDUCTIBLE DONATION?
Yes. Happy Valley United has a partnership with the BPS Foundation, a 501c3 nonprofit, that allows supporters to earn a tax-deduction for their gift.

HOW ARE TAX-DEDUCTIBLE DONATIONS USED?
Tax-deductible donations made to Happy Valley United allow student-athletes to create meaningful partnerships and support charitable causes in the local community. Donors can select a charitable organization of their choice, for student-athletes to partner with. Donors have the opportunity to designate their tax-deductible donation to student-athletes in a specific sport at Penn State.

WHAT’S THE DIFFERENCE BETWEEN A TAX-DEDUCTIBLE DONATION AND BECOMING A MEMBER?
Becoming a member of Happy Valley United unlocks a number of benefits including exclusive merchandise, meet-and-greet opportunities with student-athletes, and more. These are considered “member-only” benefits. Tax-deductible donations are not eligible for these benefits.

IS HAPPY VALLEY UNITED AFFILIATED WITH PENN STATE UNIVERSITY?
Happy Valley United is an independent corporation that is not affiliated with Penn State University.

 

[BobPSU92]

 

[BobPSU92]

TAX-DEDUCTIBLE DONATIONS
CAN I MAKE A TAX-DEDUCTIBLE DONATION?
Yes. Happy Valley United has a partnership with the BPS Foundation, a 501c3 nonprofit, that allows supporters to earn a tax-deduction for their gift.

HOW ARE TAX-DEDUCTIBLE DONATIONS USED?
Tax-deductible donations made to Happy Valley United allow student-athletes to create meaningful partnerships and support charitable causes in the local community. Donors can select a charitable organization of their choice, for student-athletes to partner with. Donors have the opportunity to designate their tax-deductible donation to student-athletes in a specific sport at Penn State.

WHAT’S THE DIFFERENCE BETWEEN A TAX-DEDUCTIBLE DONATION AND BECOMING A MEMBER?
Becoming a member of Happy Valley United unlocks a number of benefits including exclusive merchandise, meet-and-greet opportunities with student-athletes, and more. These are considered “member-only” benefits. Tax-deductible donations are not eligible for these benefits.

IS HAPPY VALLEY UNITED AFFILIATED WITH PENN STATE UNIVERSITY?
Happy Valley United is an independent corporation that is not affiliated with Penn State University.

I would believe Mauti before the I.R.S.

 

[PSUFTG]

but really what do they know

IRS says NIL collectives are not tax exempt

One of the perceived benefits of giving money to one of the many NIL collectives that have emerged in recent years is that the donation possibly becomes a write off.

profootballtalk.nbcsports.com

Who in their right mind would have ever thought they would be (tax-deductible)?

 

[PSUJam]

Who in their right mind would have ever thought they would be (tax-deductible)?

Happy Valley United.

 

[BW Lion]

Happy Valley United.

A 501 that can and should be sued.

 

[GrimReaper]

Happy Valley United.

Ya think they vetted that with a tax attorney, more specifically one that specializes in charities?

 

[Lubrano]

Doesn’t appear as though payments to a Collective are tax-deductible.

https://www.irs.gov/pub/lanoa/am-2023-004.pdf

 

[GrimReaper]

Time to blame Jay again.

 

[Bob78]

With the higher personal deductible threshold, my guess is this is likely a moot point for many (most?) donors to an NIL. But maybe not to the biggest donors.
Someone will correct me if I'm guessing wrong here.

 

[GrimReaper]

With the higher personal deductible threshold, my guess is this is likely a moot point for many (most?) donors to an NIL. But maybe not to the biggest donors.
Someone will correct me if I'm guessing wrong here.

Agreed, but it's the large donors to whom deductibility appeals.

 

[PSUFTG]

This will serve as a great lesson for the spoiled college kids of today... introduce them to the Mr. FICA

FWIW, the IRS memorandum has nothing to do with FICA-attachment to the Stud-Athlete's money. That exists regardless of this memorandum's subject, as payment for services rendered (supposedly).

The memorandum deals with deductibility of contributions to the NIL.

 

[razpsu]

Every athlete that gets nil money,is their actual nil being used for advertising or are they just getting money

 

[GrimReaper]

Every athlete that gets nil money,is their actual nil being used for advertising or are they just getting money

That's a very good question. I can't answer it, but, guess what, the IRS is paying attention.