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IRS Says Donations Made to Nonprofit NIL Collectives Are Not Tax Exempt

Canedude08 said:
Should you be able to opt out of SS payments? Yes, but then again, you know that once some people opt out and then are living on the street after their investments fail, we'll be right back here with people demanding that the powers that be "Do something" to fix it.
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And if it's a "no-strings-attached" opt-out some of those "investments" will be in the form of a Gucci track suit, their favorite recreational drug, and a weekend in the Tootsie's VIP lounge.
 
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No_Fly_Zone said:
And if it's a "no-strings-attached" opt-out some of those "investments" will be in the form of a Gucci track suit, their favorite recreational drug, and a weekend in the Tootsie's VIP lounge.
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Hey, Gucci track suits have been known to appreciate in value...in certain Eastern European communities...
 
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Do charitable enterprises qualifying for donor tax deductions get regulated somehow by IRS for "excess compensation"? There was some news recently about BLM or other enterprises under criticism for buying extravagant real estate and or paying insiders extravagant fees for security and consulting, but no mention I saw of this being actually "illegal"... seems this has been in play for decades; I recall challenges/complaints to MDS executives (Jerry Lewis group but not him) for hefty compensation and expenses, but no legal consequences I recall...

...ofc the watchdog groups can report Charity "x" spends 80% on administrative costs and warn off donors, but that's not really in play for NIL. When a donor gives 100,000 or so, he's "totally fine" with Athlete Johnny getting $10,000 per charity-promo-tweet (if he plays well)... but is the IRS fine with that?
 
jkdood said:
Do charitable enterprises qualifying for donor tax deductions get regulated somehow by IRS for "excess compensation"? There was some news recently about BLM or other enterprises under criticism for buying extravagant real estate and or paying insiders extravagant fees for security and consulting, but no mention I saw of this being actually "illegal"... seems this has been in play for decades; I recall challenges/complaints to MDS executives (Jerry Lewis group but not him) for hefty compensation and expenses, but no legal consequences I recall...

...ofc the watchdog groups can report Charity "x" spends 80% on administrative costs and warn off donors, but that's not really in play for NIL. When a donor gives 100,000 or so, he's "totally fine" with Athlete Johnny getting $10,000 per charity-promo-tweet (if he plays well)... but is the IRS fine with that?
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There was a lengthy discussion on here about excess compensation. The short answer is yes they actively monitor it. The rule, at a very high level, is you are supposed to pay a 25% excise tax on the amount about $1m in compensation to covered persons. This came into play with Manny’s buyout and Mario’s annual salary. I can tell you from personal experience that this is something the IRS checks.

There are other ways charities can get dinged, the main one being private benefit or inurement transactions. Those get taxed and penalized, and can lead to loss of exemption.
 
Haven’t read all the pages of this thread, but I’m pretty certain the solution is simply for the collective to not be set up as a 501c3.
 
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Jaxson Villain said:
Haven’t read all the pages of this thread, but I’m pretty certain the solution is simply for the collective to not be set up as a 501c3.
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The problem is that there's a lot less incentive to give to the collective if you don't get the tax deduction.
 
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Yoyo82 said:
The

The problem is that there's a lot less incentive to give to the collective if you don't get the tax deduction.
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Should still be a b2b marketing expense tax deduction for those that make contributions. The collective just can’t be tax free.
 
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