901 Fund reported $831K in 2022 revenue for Memphis NIL activities

The Memphis-focused name, image and likeness collective 901 Fund reported $831,437.35 in total revenue in 2022, according to the quarterly financial reports it provided to the Tennessee Secretary of State as a registered charity. The 901 Fund reported $487,093.26 in total expenses, leaving an excess of $344,344.09.

“The athletic seasons don’t necessarily tie to a fiscal calendar and so there can be a lag in the distributions,” 901 Fund co-founder Clay Presley told On3.

Both the Memphis men’s and women’s basketball teams played their first games of the 2022-23 season on Nov. 7, 2022, and some NIL opportunities took place in the 2023 calendar year.

In February, Memphis announced a partnership between its men’s basketball team and The Peabody Memphis. The historic hotel contributed $75 to 901 Fund for each stay a visitor booked at the hotel through the hotel’s NIL package. Senior Malcolm Dandridge also served as Honorary Duckmaster, which is a decades-long tradition that involves leading ducks from the rooftop to the foundation in the hotel lobby.

901 Fund’s total revenue reported to the Secretary of State includes public contributions plus “other revenue,” while total expenses include program services plus “other expenses.”

901 Fund registered with the state on April 4, 2022, and its renewal date is June 30, 2023. Its stated purpose, according to the Tennessee Secretary of State’s website, is “to acquire NIL rights of University of Memphis student-athletes and contribute them to charitable organizations in the Greater Memphis region.”

“The fundraising efforts really kicked off in April,” Presley said. “That was when we started doing our first activation, sort of announced 901 Fund is here, and what we accomplished through the first eight months we feel really good about and that 2023 is off to a start to well outpace what we did in 2022.”

First IRS filings for nonprofit collectives limited in scope

901 Fund’s financial filings with the Tennessee Secretary of State provide greater financial details than those made available so far by the Internal Revenue Service regarding other NIL collectives whose founders chose to establish a nonprofit organization, rather than a for-profit or not-for-profit model.

Garnet Trust Foundation (South Carolina), Reaching Champions Joining Hearts (Kansas) and TUFF Fund (Temple) each filed a Form 990-N to the IRS. The IRS’s website says, “Small tax-exempt organizations generally are eligible to file Form 990-N to satisfy their annual reporting requirement if their annual gross receipts are normally $50,000 or less.”

A Form 990-N contains limited information, such as an organization’s name and mailing address.

Nonprofit organizations can file a Form 990-N if they have existed for a year or less, and if they’ve received pledges totaling $75,000 or less in the first tax year.

The IRS sent determination letters to both the Garnet Trust Foundation and TUFF Fund that were each dated in the third full week of October. The IRS determined the organizations are public charities. That left roughly two and a half months remaining in the calendar year.

The determination letter for Reaching Champions Joining Hearts was dated May 13, 2022.

Given the timing of when many nonprofit collectives filed or received approval for 501(c)(3) status last year, many of their filings to the IRS for the 2022 tax period could be limited in detail based upon the amount of time their executives had to raise money before the end of the calendar year.

TUFF Fund executive director Andy Carl previously told On3 he’s excited about 501(c)(3) nonprofit organizations, like TUFF Fund, filing their 990 forms with the IRS.

“You’re probably going to see some eye-opening data,” he said.

901 Fund expands support of Memphis athletes

In March, 901 Fund announced it expanded its focus from supporting Memphis football and men’s and women’s basketball players to athletes from all of the university’s athletic programs. Presley previously told On3 that 901 Fund’s founders were willing to help facilitate NIL opportunities between donors and athletes from other athletic programs prior to its official expansion.

901 Fund recently participated in On3’s voluntary survey of NIL collectives and similar entities, which were invited to share how many female athletes with whom they’ve partnered. On April 24, Presley said 901 Fund had worked with 22 women this school year, including 10 athletes from across Memphis’ soccer, softball, track and field, and volleyball programs.

901 Fund is an official sponsor of Memphis Athletics through a partnership with LEARFIELD‘s Tiger Sports Properties.