NIL contributions no longer tax deductible.

[JL24]

 

[Boca Vol]

Uh oh!

 

[volroadwarrior]

Would you really expect the same people who are hiring 87000 new IRS agents to give any regular taxpayers any new breaks?

 

[Stownterry]

Robin Hood they are not

 

[Thunder Good-Oil]

Would you really expect the same people who are hiring 87000 new IRS agents to give any regular taxpayers any new breaks?

Yep. Own a business, write the “donation” off as an advertising expense. If an individual, no tax benefits. Score one for the coaches and administrators getting their share of funds redirected back under the gifts to the school umbrella.

Why should donations for coaches and athletic director salaries be tax deductible to regular tax payers, but payments going to student-athletes aren’t? What a corrupt system.

 

[Rememberthelate90s]

Will won't be happy? I tried to tell Will how to do last year but he said he was happy with his approach.

 

[unfrozencvmanvol]

Were they ever? I would think this is bad news for collectives, and will lead to more direct NIL deals between player(s) and businesses (who can write it off as an advertising expense).

 

[FranklinVFL]

I am a monthly supporter, and had a really strong gut feeling these would not be tax deductible...

 

[Devo182]

Yep. Own a business, write the “donation” off as an advertising expense. If an individual, no tax benefits.

Sole prop it. Can submit for up to 3 years with losses.

 

[Devo182]

I am a monthly supporter, and had a really strong gut feeling these would not be tax deductible...

Seriously. Is anyone really donating for the tax "benefits"? Lmfao. So you donate $100 and get $15 "back"...sweet...

And with the new standard deductions and limits to itemized, how many lower level donors are really even capable of deducting it? It only matters if you itemize....over 24k of deductions for married couples.

 

[Devo182]

Would you really expect the same people who are hiring 87000 new IRS agents to give any regular taxpayers any new breaks?

To the concept of the flat tax and those opposed to loopholes and deductions for social engineering purposes...

Why exactly SHOULD donating toward Spyre getting a 5 star be deductible in the first place?!? Are we seriously considering this a charitable contribution? If so, the system is even more messed up.

 

[Volbackhomefromtx]

I am a monthly supporter, and had a really strong gut feeling these would not be tax deductible...

I had the same feeling. Not going to top me. If anything, I may up it a bit just because. I'll leave the because alone since my because statement technically would break the board's rules.

 

[freedom fighter]

Better $100 handshakes in tailgate area, no middleman taking his cut, talk to players. Simple and smart. no IRS for players

 

[SpookyAction]

I am just a Checkerboard level member, but the IRS conclusion doesn't seem surprising on any level. Why would it?

Any LLC/non-profit can only tell contributors their donation is tax-exempt if they are recognized specifically by the IRS as a business operating for a tax-exempt purpose. I googled it.

Collectives could argue they are trade associations for the university's student athletes (this is the dubious [my feeling] status of the PGA, for example), but that is very debatable, and probably a loser. I think they might have to represent the interests of all of a university's athletes to qualify. They could try to have a collective for each sport, but I don't know enough of the non-profit tax law to say that would qualify for tax exemption either.

 

[SockeyeVol]

I don't understand why this isn't tax exempt. Isn't college football a religion in this country?

 

[Thunder Good-Oil]

Seriously. Is anyone really donating for the tax "benefits"? Lmfao. So you donate $100 and get $15 "back"...sweet...

And with the new standard deductions and limits to itemized, how many lower level donors are really even capable of deducting it? It only matters if you itemize....over 24k of deductions for married couples.

The ticket pricing model is based on giving season ticket holders a tax deduction on most of the cost of seats. There are a lot of butts in lower bowl seats coming from $600k Farragut McMansion residents with motor homes, mountain cabins, and expensive boats with a head writing off their interest and taxes on non-business returns.

It’s ridiculous that there’s a more favorable tax treatment on donations that end up in the pockets of multi-millionaire administrators and coaches than “student” athletics.

 

[J C Higgins]

I contributed at the Checkerboard level and never considered trying to deduct it.

 

[Thunder Good-Oil]

I contributed at the Checkerboard level and never considered trying to deduct it.

That’s almost certainly going to be the majority. But it just seems ridiculous that there is ANY greater tax benefit for donating to coach and administrator salaries than compensation for players. The NCAA could fix that real quick by allowing schools to pay players directly. But then the student athletes would get workers comp, unemployment, and other benefits of being employees rather than ICs or whatever they are classified as now. Plus Title IX would mean the ladies would get big pay days as well. But coaches making $10 million, coordinators making $2 million, and ADs making $5 million aren’t issues.

 

[Thunder Good-Oil]

I am just a Checkerboard level member, but the IRS conclusion doesn't seem surprising on any level. Why would it?

Any LLC/non-profit can only tell contributors their donation is tax-exempt if they are recognized specifically by the IRS as a business operating for a tax-exempt purpose. I googled it.

Collectives could argue they are trade associations for the university's student athletes (this is the dubious [my feeling] status of the PGA, for example), but that is very debatable, and probably a loser. I think they might have to represent the interests of all of a university's athletes to qualify. They could try to have a collective for each sport, but I don't know enough of the non-profit tax law to say that would qualify for tax exemption either.

Tax exempt and charitable organizations aren’t the same. Country Clubs and food banks are both tax exempt, but only donations to food banks qualify as charitable deductions on individual tax returns.

 

[SpookyAction]

Tax exempt and charitable organizations aren’t the same. Country Clubs and food banks are both tax exempt, but only donations to food banks qualify as charitable deductions on individual tax returns.

Correct.
The twitter post in the OP implies some collective might have told contributors that, or people are just looking to start crap about someone's collective.

I don't see this as a real story, unless a collective lied to people.
If that didn't happen, then just noise. If a collective promised tax deductions, someone will take one for their team.

I was spitballing about Spyre for how they can be tax exempt themselves. I use the PGA as an example of a collection of rich guys simply going through the motions of community outreach and charity events to keep tax exempt status for themselves. If the PGA qualifies, Spyre could try if they wanted.
I don't see them trying it.

I did not post that would make individual contributions tax deductible.

 

[Franklin_Vol09]

Real simple fix. Start a LLC out of New Mexico (very specific reason here) and then write it off as an advertising expense. You are welcome.

 

[37620VOL]

Real simple fix. Start a LLC out of New Mexico (very specific reason here) and then write it off as an advertising expense. You are welcome.

I fear some folks won't know that you're joking

 

[37620VOL]

Allow me to opine on this, for once, I actually know what I'm talking about.

1. Spyre and the Volunteer Club are NOT 501c3 organizations (to my knowledge). "Contributions" are not and never have been deductible. Payments that are ordinary and necessary and related to a business with a legit profit motive might be a business deduction.
2. Volunteer Legacy is a 501c3 and Spyre's "charitable arm". I'm not sure it provides any NIL benefits to players, but presumably, it would be a charitable deduction.
3. Keep in mind that most of us are under the "standard deduction" which is roughly $13k single and $26k for joint filers. So how many of us are actually going to itemize that $25 per month anyway?

 

[GAVol]

3. Keep in mind that most of us are under the "standard deduction" which is roughly $13k single and $26k for joint filers. So how many of us are actually going to itemize that $25 per month anyway?

I was about to post the exact same thing. This should be a non-issue for the vast majority since most aren't itemizing anymore and NIL has never pretended to be not for profit anyway.