Texas A&M shuts down 12th Man+ NIL fund

[VolsFan-TX]

Texas A&M received a letter from the IRS regarding the potential loss of non-profit status for their 12th Man+ fund related to NIL activity.

From the article,

"Texas A&M has shut down the controversial 12 Man+ Fund after reviewing directives from the IRS. The fund, which attempted to bring name, image and likeness (NIL) collective efforts in-house, put the 501(c)(3) status of the 12th Man Foundation at risk.

The decision to shut down the NIL fund came after the IRS released a memo on June 9, which told NIL collectives their function doesn't fit within the confines of tax-exempt status. The 12th Man+ Fund attempted to reward donors with athletic department points and tax benefits in exchange for donations to provide NIL compensation to athletes."

The school was allowing boosters to receive benefits (points and tax breaks) from donating to the fund. NIL donations are not tax-deductible.

Texas A&M shuts down controversial 12th Man+ NIL Fund after IRS threatens foundation's nonprofit status - CBSSports.com

 

[Nerwen Aldarion]

LOL does Saban have any buddies in the IRS?

 

[WillisWG]

hard to imagine tamu got it wrong

 

[SpookyAction]

I wondered where the buzz about NIL Collectives not being tax deductible came from.
It never once crossed my mind they were and it's weird anyone would think they are.

Of course, regular people don't cook their books a hundred different ways.

 

[Volfan1000]

It will be interesting to see how long NIL stays around college athletics.

 

[Bearkat_Vol]

LOL does Saban have any buddies in the IRS?

You may be on to something. How many IRS agents have degrees from Alabama? U Texas?

 

[BruisedOrange]

You may be on to something. How many IRS agents have degrees from Alabama? U Texas?

Not everything is a conspiracy!

However... I would ask, "How well did TamU do against the spread last season?"

 

[SayUWantAreVOLution]

It will be interesting to see how long NIL stays around college athletics.

How long do you think players have been paid under the table by way of their family or by handshake envelopes before NIL?

Several decades. It's a multi billion dollar business. Money is going to change hands.

 

[Adam Sandler]

Texas A&M received a letter from the IRS regarding the potential loss of non-profit status for their 12th Man+ fund related to NIL activity.

From the article,

"Texas A&M has shut down the controversial 12 Man+ Fund after reviewing directives from the IRS. The fund, which attempted to bring name, image and likeness (NIL) collective efforts in-house, put the 501(c)(3) status of the 12th Man Foundation at risk.

The decision to shut down the NIL fund came after the IRS released a memo on June 9, which told NIL collectives their function doesn't fit within the confines of tax-exempt status. The 12th Man+ Fund attempted to reward donors with athletic department points and tax benefits in exchange for donations to provide NIL compensation to athletes."

The school was allowing boosters to receive benefits (points and tax breaks) from donating to the fund. NIL donations are not tax-deductible.

Texas A&M shuts down controversial 12th Man+ NIL Fund after IRS threatens foundation's nonprofit status - CBSSports.com

So do they keep the funds and donors amend their taxes and pay the tax or do they have to send the cash back to donors? What about funds already paid out to athletes? I would LOVE to see their NIL efforts crippled by this.

 

[VolsFan-TX]

So do they keep the funds and donors amend their taxes and pay the tax or do they have to send the cash back to donors? What about funds already paid out to athletes? I would LOVE to see their NIL efforts crippled by this.

Not sure of the outcome, but definitely will have tax implications. Hard to believe they thought this was legal.