New thread since this is a pretty significant development.
New thread since this is a pretty significant development.
You are making a good point about what is an “educational” donation. But the challenge won‘t be whether NIL can be considered an educational donation, it’s not, but whether donations to the athletic department should also be excluded. IMO.If your tax-deductible donation goes towards a nice locker room sauna or other amenity for athlete Johnny, or a coach's salary, the IRS is content, but if it gets Johnny a car and a watch, then it's somehow different? I'd love to see this go to court.
Because $EC.why would anyone think that it is a tax-free charitable donation when it is not a charitable donation
You are making a good point about what is an “educational” donation. But the challenge won‘t be whether NIL can be considered an educational donation, it’s not, but whether donations to the athletic department should also be excluded. IMO.
@TheOriginalCane ??
As to the last line; so if you donate $10,000 but receive “free” tickets worth $2000, the donation is reduced to $8000?Uh, yeah, you are completely correct. I realize we have a bunch of guys who think they can outsmart the IRS with their brilliant hypotheticals, but it doesn't work that way.
The organization is the key. Religions and universities are fine, regardless of whether some ****head pastor spends church donations on a private jet.
And, yes, the form and substance mean something. Collectives are simply transferring money to individuals to spend it how they choose. Even in the most opulent university/religion situation, the "private jet" is still owned by the organization, not the individuals involved.
And earmarked donations to any one branch of a university are fine, as long as there is a corresponding reduction for the value of anything received in exchange.
Only twice?!No surprise, it’s the IRS.
It will not affect my giving.
I just assume everything I earn will be taxed twice anyway, so if I catch a break here and there, fine.
Man, don’t remind meOnly twice?!
Medicare
Ssn
Federal
State
Personal property County
Sales tax
Cap gains
gas tax
I’m sure I could name a few more.
There are an few issues IMO. One is whether the group that NIL is seeking to help is a large enough and identifiable charitable class.You are making a good point about what is an “educational” donation. But the challenge won‘t be whether NIL can be considered an educational donation, it’s not, but whether donations to the athletic department should also be excluded. IMO.
@TheOriginalCane ??
They may have gotten exemption before the IRS realized what was going on or was pushing them through while climbing out of their Covid backlog, or they may have been applied for under the 1023EZ. Or they were pending and just telling donors they will get it. Lots of possibilities there.why would anyone think that it is a tax-free charitable donation when it is not a charitable donation
This is why the value of any sort of membership perks are declared in the letter you get.As to the last line; so if you donate $10,000 but receive “free” tickets worth $2000, the donation is reduced to $8000?
As to the last line; so if you donate $10,000 but receive “free” tickets worth $2000, the donation is reduced to $8000?
There are an few issues IMO. One is whether the group that NIL is seeking to help is a large enough and identifiable charitable class.
The second is, even assuming an entity separate from the larger University or Foundation, like the University of Georgia Athletic Association, this would be one small component of a broader organization’s activity and exempt purpose. If I had to guess that is why they are now trying to fold them into the foundation, athletic association, university, etc.
Another issue if it is a standalone entity is if you are pulling marketing deals for athletes, how is that different from competing with the for profit general marketplace.
They may have gotten exemption before the IRS realized what was going on or was pushing them through while climbing out of their Covid backlog, or they may have been applied for under the 1023EZ. Or they were pending and just telling donors they will get it. Lots of possibilities there. But the common theme is whoever advised them on the front end should have known better or just didn’t care, and if they are attorneys should be sanctioned at a minimum.