Hall Hands on Deck is emailing tax letters tonight

[walshtrips]

Tax letters will be emailed to supporters who gave $250 and higher in 2023. Check your spam if you don't see the email later this evening.

 

[SHUHoopsFan]

Thought the IRS ruled that 501c3 collectives are not tax deductible because the main purpose of the organization is to pay student athletes as opposed to charity work.

 

[SHUHoopsFan]

Most NIL collectives likely ineligible for tax-exempt status, IRS advises

A Chief Counsel legal memo concludes that organizations supporting compensation to college student-athletes for their name, image, and likeness (NIL) generally have a substantial nonexempt purpose.

www.journalofaccountancy.com

Read this last night. Deduct at your own risk. Most NIL collevtives likely ineligible fot tax-exempt status since the primary purpose is not charity work, the primary purpose is to pay players to do charity work. Next to last paragraph says it all. When 80%+ of the money is going to pay players at one institution and you're not offering these jobs to regular students at the school, your intent is to pay players and not do charity work. The charity work is essentially just an add on. Seems like the money rules all turned back on the players. A regular student can get paid, I want to get paid. Now it's why can't a regular student get these jobs at these non profits? Discrimination?

I would love to hear what @Merge or @SPK145 have to say as is this more the world they are in.

 

[walshtrips]

Thought the IRS ruled that 501c3 collectives are not tax deductible because the main purpose of the organization is to pay student athletes as opposed to charity work.

Thus far the IRS hasn't made a ruling, and 501(c)(3) organizations are required by law to send out acknowledgement of donations above $250.

We're not giving tax advice, we're just following IRS regulations by acknowledging donations.

Everyone should consult a tax advisor prior to filing their tax returns.

 

[CaptBob]

Here'e another--

 

[dehere23]

This says it all, doesn't it: Most NIL collevtives likely ineligible fot tax-exempt status since the primary purpose is not charity work, the primary purpose is to pay players to do charity work.

 

[Merge]

The NIL collectives really shouldn't be eligible for tax exemption based on the rules. Though, I'd feel fine deducting for 2023 since you can grab the Hall Hands on Deck determination letter stating it is a tax exempt organization.
Until they issue a new ruling and reverse their prior determination letters, you were contributing to an eligible organization.

 

[Seton75]

I cannot publicly comment on my taxes till they complete my audit

 

[SHUHoopsFan]

Thus far the IRS hasn't made a ruling

That may be true but they put out a memorandum back in June giving people a heads up they're looking into this and what not to do. Everyone is still doing it anyway. I think there's a lot of good people out there who will be screwed later on across the country trying to help out their school. I would love to be wrong, but giving money to organizations designed to pay college athletes is a joke to real real non profits and eventually they will rule against it. You want to give to a college athlete, you should have no problems doing it. Just follow gift tax rules as opposed to taking a charitable deduction.