NIL money not tax exempt?

[Prestonyte]

That will have an impact on things, at least initially!

"The IRS memo put a line in the sand," Mittendorf said. "Paying college athletes is not a charitable purpose. Paying an athlete and doing some charitable work on the side, is also not a charitable purpose."

Some nonprofit NIL collectives may not qualify as tax-exempt - ESPN

 

[Deleted11512]

I believe Clemson tried to set their main collective up as a 501c3. Will be interesting to see what, if any, impact this has.

 

[SC95]

It's pay for play and should be taxed.

 

[Rogue Cock]

That will have an impact on things, at least initially!

"The IRS memo put a line in the sand," Mittendorf said. "Paying college athletes is not a charitable purpose. Paying an athlete and doing some charitable work on the side, is also not a charitable purpose."

Some nonprofit NIL collectives may not qualify as tax-exempt - ESPN

Could have told you that. Wait until athletes are considered employees of the University.

Now, businesses who pay for the athlete to appear at a promotional event or in an advertisement, can deduct the expense they made as an advertising expense.

 

[Uscg1984]

I believe Clemson tried to set their main collective up as a 501c3. Will be interesting to see what, if any, impact this has.

I'm no tax law expert, but assuming they succeeded, that would only provide a tax benefit to the contributors. Those who receive income from the collective would still owe taxes on that income.

 

[Rogue Cock]

I'm no tax law expert, but assuming they succeeded, that would only provide a tax benefit to the contributors. Those who receive income from the collective would still owe taxes on that income.

Can’t pay for someone else’s advertising or a persons income and deduct it, unless you are the company/employer.

 

[Surfcock]

You want to be paid like an adult or a pro, then you need to pony up like one. Pay the man at door on your way out

 

[Uscg1984]

Can’t pay for someone else’s advertising or a persons income and deduct it, unless you are the company/employer.

No, of course not. But I can deduct a contribution to St. Jude's even though employees of St. Jude's have income that is fully taxable. I was speaking to Clemson's attempt to designate their collective a non-profit. While, if successful, there would be tax benefits to contributors, no tax benefits would extend to those players receiving payment.

Having said that, I have no idea if collectives are or can be non-profits. I kind of hope they aren't, but it won't effect me either way. I have my own kid's college to pay for first and once that's done, there's the aforementioned St. Jude's that strikes me as a much more compelling.

 

[Rogue Cock]

No, of course not. But I can deduct a contribution to St. Jude's even though employees of St. Jude's have income that is fully taxable. I was speaking to Clemson's attempt to designate their collective a non-profit. While, if successful, there would be tax benefits to contributors, no tax benefits would extend to those players receiving payment.

Having said that, I have no idea if collectives are or can be non-profits. I kind of hope they aren't, but it won't effect me either way. I have my own kid's college to pay for first and once that's done, there's the aforementioned St. Jude's that strikes me as a much more compelling.

Not sure either. But it usually depends on the purpose of the non-profit. The purpose of St. Jude's fits in easily into the charitable catagory. The one for NIL collectives would almost have to fit into the promotion of amateur athletics catagory and that is an iffy fit when the purpose of those collectives is to financially benefit athletes. They may can wedge that in, but if anyone would have tried it I would think it would have been TOSU, who has pushed the envelope with the IRS several times and won.

 

[Deleted11512]

Not sure either. But it usually depends on the purpose of the non-profit. The purpose of St. Jude's fits in easily into the charitable catagory. The one for NIL collectives would almost have to fit into the promotion of amateur athletics catagory and that is an iffy fit when the purpose of those collectives is to financially benefit athletes. They may can wedge that in, but if anyone would have tried it I would think it would have been TOSU, who has pushed the envelope with the IRS several times and won.

The article is about the IRS saying collectives can’t be charitable organizations.

 

[Rogue Cock]

The article is about the IRS saying collectives can’t be charitable organizations.

I agree with that....but I guess Clemson filed anyway, so they can challenge that ruling. Don't see it working though. The Collectives are more a 501c6 type of organization.

 

[18IsTheMan]

Why in the world would it be tax exempt?

All it's going to do, of course, is force more under-the-table stuff, which is basically no different from how it was before.