In news that could rock the world of name, image and likeness, the Internal Revenue Service suggests that nonprofit NIL collectives offering tax deductions could be breaking the law.
According to a memo released from the office of the IRS Chief Counsel, donations made to nonprofit NIL collectives “are not tax exempt” because the benefits they provide college athletes are “not incidental both qualitatively and quantitatively to any exempt purpose.”
The 12-page memo was posted publicly Friday on the IRS website. The memo, actually written May 23, is filtering through the college athletics world as well as those working in the collective space.
