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re: Loyola Marymount to cut 6 sports in response to NIL
Posted on 1/27/24 at 3:38 pm to meansonny
Posted on 1/27/24 at 3:38 pm to meansonny
quote:
No one is expensing a check to collectives because it is not deductible per the IRS.
This is incorrect.
quote:
Going forward, NIL collectives that currently have tax-exempt status from the IRS may continue to operate as they previously have but should be aware that their activities are now more likely to be reviewed by the IRS and challenged if they are determined to not be substantially charitable. Existing entities wishing to protect their tax-exempt status and the deductibility of future donations,
Memo from the IRS but again as I said the ones that are the donors do qualify for a write-off based on their donation.
2
Posted on 1/27/24 at 3:41 pm to TideWarrior
In regard to NIL contracts setup directly with a business can also be recorded as a business expense.
quote:
Generally, business expenses must be ordinary and necessary to be deductible. An ordinary expense is common and accepted in the industry. A necessary expense is helpful and appropriate.
Influencer marketing—like the kind done by a student-athlete—might be considered ordinary and necessary for certain types of businesses, such as a health food store, a physical therapist’s office, or a mobile phone company. The IRS might not find it ordinary and necessary for other businesses, such as management consultants or industrial manufacturers.
Posted on 1/27/24 at 3:48 pm to TideWarrior
Do you have a link?
Because some memos are newer than others.
September 6, 2023
October 18, 2023
Essentially, if you have an active nonprofit which adds "collective" as a minority activity then it "may" continue to qualify for the tax deduction.
But there will be audits. And with the numbers running through these collectives ($2M+ annual), you are going to be hard pressed to find qualifying nonprofits where that amount of volume is going to be minimal activity.
"Financial council" to the athletes doesn't qualify as charitable work, unfortunately (I think that was Texas A&M's claim as a nonprofit benefit to the community).
Because some memos are newer than others.
September 6, 2023
October 18, 2023
Essentially, if you have an active nonprofit which adds "collective" as a minority activity then it "may" continue to qualify for the tax deduction.
But there will be audits. And with the numbers running through these collectives ($2M+ annual), you are going to be hard pressed to find qualifying nonprofits where that amount of volume is going to be minimal activity.
"Financial council" to the athletes doesn't qualify as charitable work, unfortunately (I think that was Texas A&M's claim as a nonprofit benefit to the community).
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