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  • 1.  Name, Image, Likeness athletic contributions

    Posted 01-31-2025 11:35 AM

    Hello,

    Our University is going to accept NIL funds in house soon to be deposited into revenue sharing accounts.  This process has been ok'd by our legal department.  My question is there any other university doing this?  I'm looking for guidelines on recording and receipting these funds.  I believe these are fully tax deductible without any benefits.  Thanks in advance for any information you might have on this very new initiative.

    Diana Wilkins

    Director, Gift Services

    Creighton University



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    Diana Wilkins
    Creighton University
    dianawilkins@creighton.edu
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  • 2.  RE: Name, Image, Likeness athletic contributions

    Posted 01-31-2025 11:57 AM
    At present I am not aware of a way to accept these other than through a collective or business. And the IRS has thus far not found these payments pass the educational purpose test. Furthermore, the payments to the athletes are taxable income.

    Can you share the ruling from Counsel and the IRS that will permit this? As of two weeks ago I had not seen anything new on this front!

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas - Small Keyboard





  • 3.  RE: Name, Image, Likeness athletic contributions

    Posted 01-31-2025 12:05 PM

    Unfortunately, I have not seen the legal counsel's decision. I'll try to get some more information.



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    Diana Wilkins
    Creighton University
    dianawilkins@creighton.edu
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  • 4.  RE: Name, Image, Likeness athletic contributions

    Posted 01-31-2025 12:36 PM

    There are colleges/athletic departments approaching this from a variety of ways.  Receiving "NIL" money in-house as charitable may depend upon how the student athlete receives the money.  Because there are other costs to attend college outside of tuition/room/board, etc., student athletes may receive funds considered benefits tied to education (this concept stems from the Alston Award which provides financial aid for academic expenses up to a certain amount). Instead of doling out money as NIL payments, some athletic departments may decide to increase the amount awarded as tied to education expenses instead. I believe those dollars can be generated via charitable contributions more so than money specifically being given for "NIL."  I have heard of some university foundations creating new funds for this purpose. Still a lot of unknowns as we all try to figure this out in real time. I, too, am interested to hear how this conclusion was reached at Creighton. 



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    Nancy Vinje Jones
    Ball State University Foundation
    nvinjejones@bsu.edu
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  • 5.  RE: Name, Image, Likeness athletic contributions

    Posted 01-31-2025 01:41 PM
    The issue is whether payments to any program qualify as "NIL" payments. Those that are genuinely NIL payments are ultimately taxable income to the athlete. An organization can create a "blended" program that is part NIL (to a separate legal entity) and part charitable. But presently, I am unaware of any NIL Collective that meets the IRS definition of a "charitable" organization.

    As this excellent summary from NC State's Poole College of Management states, "the IRS has asserted that NIL collectives aren't really charitable organizations." This article has links to other sources to support this statement.


    The article mentions how a NIL could partner with a 501c3 so donors can make "tax-deductible support payments." But that is not the same thing as NIL payments being tax-deductible.

    I'd tread carefully in this area. All is not as it may seem.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 6.  RE: Name, Image, Likeness athletic contributions

    Posted 06-04-2025 09:10 AM

    Hi all - 

    We are trying to come up to speed on NIL for our university. We think that what is being proposed internally is along the lines of what Nancy Jones suggested: " Instead of doling out money as NIL payments, some athletic departments may decide to increase the amount awarded as tied to education expenses instead." What have folks figured out with their institutions on this?  I know that we need to talk with our legal team, but it would be great as Diana Wilkins mentioned to start from any guidelines on recording and receipting these funds that any teams have already figured out. Thanks in advance for sharing!

    Sylvia Galen, GW MBA '21, P'26 SEAS
    Assist VP, Advancement Systems & Analytics | Adv. Svcs.
    Development and Alumni Relations
    The George Washington University
    o 202-994-9373  
    sgalen@gwu.edu

     



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    Sylvia Galen
    The George Washington University
    sgalen@gwu.edu
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