Interesting Tidbit

[AZGrizFan]

:lol: :lol: gonna force it back under the table...

How so?

I assume businesses can still hire players under NIL, and deduct most of their costs as business costs. But NIL's set up as non-profits won't be able to. Just related donations for stadium boxes, required to get better seats, etc. are no longer tax deductible.

I’m referring to the straight “donations” to NIL funds…if they’re no longer tax deductible then they will slow to a trickle, I would think.

 

[mthoopsfan]

How so?

I assume businesses can still hire players under NIL, and deduct most of their costs as business costs. But NIL's set up as non-profits won't be able to. Just related donations for stadium boxes, required to get better seats, etc. are no longer tax deductible.

I’m referring to the straight “donations” to NIL funds…if they’re no longer tax deductible then they will slow to a trickle, I would think.

What gets forced under table?

 

[AZGrizFan]

I’m referring to the straight “donations” to NIL funds…if they’re no longer tax deductible then they will slow to a trickle, I would think.

What gets forced under table?

payments directly to players...

 

[mthoopsfan]

What gets forced under table?

payments directly to players...

Those aren’t tax deductible.

Some NIL collectives are not non-profits. Most weren’t initially, then more were non-profits. The only thing changing is that it looks like donations to the NIL non-profits won’t be deductible as donations. Yes, that will increase the costs of donations to the NIL non-profits. I assume the NIL non-profits will disappear. No reason to use them. No reason for payments to players to be under the table.

 

[AZGrizFan]

payments directly to players...

Those aren’t tax deductible.

Some NIL collectives are not non-profits. Most weren’t initially, then more were non-profits. The only thing changing is that it looks like donations to the NIL non-profits won’t be deductible as donations. Yes, that will increase the costs of donations to the NIL non-profits. I assume the NIL non-profits will disappear. No reason to use them. No reason for payments to players to be under the table.

That was my point. They WERE tax deductible, now they won’t be.

 

[ElrodGrizzly]

Those aren’t tax deductible.

Some NIL collectives are not non-profits. Most weren’t initially, then more were non-profits. The only thing changing is that it looks like donations to the NIL non-profits won’t be deductible as donations. Yes, that will increase the costs of donations to the NIL non-profits. I assume the NIL non-profits will disappear. No reason to use them. No reason for payments to players to be under the table.

That was my point. They WERE tax deductible, now they won’t be.

Why would that push it back under the table, though? Under the table isn't tax deductible, and IS a crime. I could see it leading to people giving less money to NIL foundations, but not pushing it back under the table. That would leave criminal exposure for the athlete and the booster, and I can't personally see why someone would go that route rather than just donate to the foundation?

Maybe I'm off base, but that's how it seams to me.

 

[mthoopsfan]

Those aren’t tax deductible.

Some NIL collectives are not non-profits. Most weren’t initially, then more were non-profits. The only thing changing is that it looks like donations to the NIL non-profits won’t be deductible as donations. Yes, that will increase the costs of donations to the NIL non-profits. I assume the NIL non-profits will disappear. No reason to use them. No reason for payments to players to be under the table.

That was my point. They WERE tax deductible, now they won’t be.

Most NIL was not given through non-profits, thus tax deductible, to my knowledge. Is the UM collective or collective tax deductible?

 

[AZGrizFan]

That was my point. They WERE tax deductible, now they won’t be.

Most NIL was not given through non-profits, thus tax deductible, to my knowledge. Is the UM collective or collective tax deductible?

I don’t know about the UM one, but the OP article was about Wazzu seeing a decline in general athletic department donations as donors were donating directly to the NIL and still getting the tax deduction…if that goes away, it will change the playing field.

 

[ElrodGrizzly]

That was my point. They WERE tax deductible, now they won’t be.

Most NIL was not given through non-profits, thus tax deductible, to my knowledge. Is the UM collective or collective tax deductible?

I have no involvement with the collective, but when it IV0VI collective was originally announced on eGriz they said that it was being made to be a non-profit.