MUScoop

MUScoop => Hangin' at the Al => Topic started by: Jay Bee on June 10, 2023, 10:44:39 AM

Title: Be The Difference, Serve The Time
Post by: Jay Bee on June 10, 2023, 10:44:39 AM
https://www.irs.gov/pub/lanoa/am-2023-004.pdf

I like the language the Be The Difference NIL Collective, which has no affiliation w MU, uses … basically, “talk to ur tax person”.

If you’re “donating” to a collective, my tax advice is do not claim it as a deductible charitable contribution.
Title: Re: Be The Difference, Serve The Time
Post by: muwarrior69 on June 10, 2023, 12:19:53 PM
https://www.irs.gov/pub/lanoa/am-2023-004.pdf

I like the language the Be The Difference NIL Collective, which has no affiliation w MU, uses … basically, “talk to ur tax person”.

If you’re “donating” to a collective, my tax advice is do not claim it as a deductible charitable contribution.

MU alums can support the the basketball program anyway they prefer, but my perspective on this is if the big money "guys"  can buy out Wojo's contract, and the University can extend Shaks's contract they can come up with the NIL money as well.
Title: Re: Be The Difference, Serve The Time
Post by: brewcity77 on June 10, 2023, 12:38:40 PM
The University literally can't. It's against the rules. How many times does this need to be explained?
Title: Re: Be The Difference, Serve The Time
Post by: muwarrior69 on June 10, 2023, 01:07:29 PM
The University literally can't. It's against the rules. How many times does this need to be explained?

The University can reach out to big donors to buy out Wojo, but they can't reach out to big donors for NIL or shell out more for Shaka?

If there are rules who is enforcing them?
Title: Re: Be The Difference, Serve The Time
Post by: jfp61 on June 10, 2023, 01:08:31 PM
yea, of course an IRS Memorandum says that. They want money.  Wait until a supreme court case is heard over it.

If it fails i can't wait for a Jacques Marquette themed NIL fund that is a religious based fund, get our religious exception on.
Title: Re: Be The Difference, Serve The Time
Post by: muwarrior69 on June 10, 2023, 01:13:44 PM
yea, of course an IRS Memorandum says that. They want money.  Wait until a supreme court case is heard over it.

If it fails i can't wait for a Jacques Marquette themed NIL fund that is a religious based fund, get our religious exception on.

I like that. We would have an advantage over all the state and non-religious private schools. I'm sure the big donors would like that. A nice tax write off.
Title: Re: Be The Difference, Serve The Time
Post by: The Equalizer on June 10, 2023, 01:41:20 PM
Quote from: brewcity77 link=topic=64843.msg1556002#msg1556002 date=
The University literally can't. It's against the rules. How many times does this need to be explained?

Except that there's nothing that would stop Shaka from casually pointing out to said donor that next year's team depends on Player X returning to the team, and that player is getting a very attractive NIL offer that would require him to relocate to a different market.  Of course, if he relocates, he won't be able to attend (or play for) MU.

That donor would be more than able to connect the dots without being explicitly directed to do so by the university.
Title: Re: Be The Difference, Serve The Time
Post by: The Lens on June 10, 2023, 03:06:32 PM
MU69: I want a top flight program. And I don’t want to pay for it.
Title: Re: Be The Difference, Serve The Time
Post by: muwarrior69 on June 10, 2023, 05:18:20 PM
MU69: I want a top flight program. And I don’t want to pay for it.

So how much are forking over?
Title: Re: Be The Difference, Serve The Time
Post by: 79Warrior on June 10, 2023, 05:29:51 PM
MU alums can support the the basketball program anyway they prefer, but my perspective on this is if the big money "guys"  can buy out Wojo's contract, and the University can extend Shaks's contract they can come up with the NIL money as well.

The difference is the NIL is for players. Shaka is an employee of the University. Rules are completely different.
Title: Re: Be The Difference, Serve The Time
Post by: muwarrior69 on June 10, 2023, 06:53:17 PM
The difference is the NIL is for players. Shaka is an employee of the University. Rules are completely different.

...and the high end donors make sure the University has the dough to pay that employee or buyout his contract when they part ways. The rules may be different but who is enforcing those rules?
Title: Re: Be The Difference, Serve The Time
Post by: The Hippie Satan of Hyperbole on June 10, 2023, 09:33:37 PM
The University can reach out to big donors to buy out Wojo, but they can't reach out to big donors for NIL or shell out more for Shaka?

If there are rules who is enforcing them?

They most definitely can donate the money to Be the Difference. The question is if those donations can be considered tax deductible.
Title: Re: Be The Difference, Serve The Time
Post by: Jay Bee on June 10, 2023, 09:36:13 PM
They most definitely can donate the money to Be the Difference. The question is if those donations can be considered tax deductible.

Yes. The other question is related to the orgs themselves… can run into trouble quickly
Title: Re: Be The Difference, Serve The Time
Post by: The Hippie Satan of Hyperbole on June 10, 2023, 09:37:54 PM
yea, of course an IRS Memorandum says that. They want money.  Wait until a supreme court case is heard over it.

If it fails i can't wait for a Jacques Marquette themed NIL fund that is a religious based fund, get our religious exception on.


This will never get to the Court. They usually let the IRS interpret its rules.

This isn’t surprising. I have no idea what charitable purpose is served through giving NIL money to student athletes. Maybe if those athletes are being paid to “volunteer” at a charity, but that’s pretty tenuous.
Title: Re: Be The Difference, Serve The Time
Post by: The Hippie Satan of Hyperbole on June 10, 2023, 09:39:02 PM
Yes. The other question is related to the orgs themselves… can run into trouble quickly

Correct. If they aren’t charities they aren’t tax exempt.
Title: Re: Be The Difference, Serve The Time
Post by: Room510 on June 11, 2023, 12:11:01 PM
So now :
1> Donations to Athletic Departments, which go to pay multi-million dollar coaches salaries plus highly comped AD's and other admins - these are fully deductible
2> Donations to NIL Collectives, which go to pay relatively smaller amounts to athletes - not deductible

Just another example of how the current NIL structure (or really, non-structure) is a lot of non-sense and won't stand the test of time.  The day when schools will pay the athletes directly is coming, probably faster than many expect.  Hopefully that will include some sort of competitive balance provisions which all successful professional sports leagues include.


Title: Re: Be The Difference, Serve The Time
Post by: dgies9156 on June 11, 2023, 12:21:31 PM
The notion that there is somehow no coordination between the school and the NIL cooperatives is so cutely naïve.

Where do you think the donor lists for the NIL cooperatives come from? Thin air? That's huge. And while there can't be direct coordination between the two, what's to prevent an athletic director and the head of an NIL cooperative from having a "friendly" lunch, where nothing is written down, no evidence of action taken and no retribution. Ditto for phone calls and "at home" dinners.

You lawyers know this! Bill Scholl has an innocent dinner with Joe Jones of the Be the Difference NIL Cooperative. Say they are old friends and their wives come over at Scholl's home in Mequon. Or River Hills. Or wherever. They have a pleasant evening, share a fine bottle of wine and talk about the old days. Part of the way through the conversation, the ladies go out and look at the Scholls' flower garden when Scholl raises a question of Jones: "We need $12 million for next year so we can compete with Michigan for Super A. Stud, a 6'10" power forward from Chicago. Shaka has about got him but the family has an impressive offer from the Wolverines."

Prove that one with the NCAA!
Title: Re: Be The Difference, Serve The Time
Post by: The Hippie Satan of Hyperbole on June 11, 2023, 12:22:12 PM
Donations to athletic departments are tax deductible because they fall under the university's 501(c)(3) status. Unlike NIL collectives, no one questions whether or not colleges and universities qualify as charities under 501(c)(3).

The real question should be if athletic income should qualify as unrelated business income and therefore be taxable.
Title: Re: Be The Difference, Serve The Time
Post by: jfp61 on June 11, 2023, 12:26:40 PM

This will never get to the Court. They usually let the IRS interpret its rules.

This isn’t surprising. I have no idea what charitable purpose is served through giving NIL money to student athletes. Maybe if those athletes are being paid to “volunteer” at a charity, but that’s pretty tenuous.

don't doubt justice thomas and his love for huskers football
Title: Re: Be The Difference, Serve The Time
Post by: Herman Cain on June 11, 2023, 12:50:08 PM
One of the collectives our business is involved with , makes no pretense to be a charity.

This entity has raised considerable funds and is writing big checks in the Portal Market .

Will see if the players pan out .
Title: Re: Be The Difference, Serve The Time
Post by: muwarrior69 on June 11, 2023, 03:36:27 PM
The notion that there is somehow no coordination between the school and the NIL cooperatives is so cutely naïve.

Where do you think the donor lists for the NIL cooperatives come from? Thin air? That's huge. And while there can't be direct coordination between the two, what's to prevent an athletic director and the head of an NIL cooperative from having a "friendly" lunch, where nothing is written down, no evidence of action taken and no retribution. Ditto for phone calls and "at home" dinners.

You lawyers know this! Bill Scholl has an innocent dinner with Joe Jones of the Be the Difference NIL Cooperative. Say they are old friends and their wives come over at Scholl's home in Mequon. Or River Hills. Or wherever. They have a pleasant evening, share a fine bottle of wine and talk about the old days. Part of the way through the conversation, the ladies go out and look at the Scholls' flower garden when Scholl raises a question of Jones: "We need $12 million for next year so we can compete with Michigan for Super A. Stud, a 6'10" power forward from Chicago. Shaka has about got him but the family has an impressive offer from the Wolverines."

Prove that one with the NCAA!

...and Scholl's wife returns with 20 million dollars in cash that Mrs. Jones just so happens to find in Mrs. Scholl's garden.
Title: Re: Be The Difference, Serve The Time
Post by: dgies9156 on June 12, 2023, 08:14:50 AM
OK gang, I have no problem with people contributing to "Be the Difference" NIL Cooperative.  But, there's no way on God's blue-green earth that the contributions should be tax deductible.

Yeah, I know, conservative, less government, etc.....

But, historically 501(c)3 status was reserved for agencies that provide societal benefit. Basic needs, education, alleviating suffering and so forth. Whoever wrote the 501(c)3 laws undoubtedly did not have supporting basketball players as a tax-deductible activity. That's not what the law was meant for, nor should it be.

If you want a tax deduction or a sense of doing good, there's lots of worthy causes, including many at Marquette. If you want a great basketball, give to NIL. Better yet, do both but don't take the NIL as a tax deduction!

Thanks for listening!
Title: Re: Be The Difference, Serve The Time
Post by: MU90620 on June 12, 2023, 11:20:47 AM
Whoever wrote the 501(c)3 laws undoubtedly did not have supporting basketball players as a tax-deductible activity. That's not what the law was meant for, nor should it be.


501(c)(3) entities have been supporting basketball players for years. Just not at the college level. Virtually every travel basketball program in the country is set up as a 501(c)(3). Most of the money being poured into youth basketball teams is deductible. Even when it’s for your kid’s team. I can’t speak to how many people actually take the deduction, but they could.  Most High School programs set up 501(c)(3)s for their offseason activities as well.

I’m not trying to counter your point of that they shouldn’t be deductible, but they are.
Title: Re: Be The Difference, Serve The Time
Post by: The Hippie Satan of Hyperbole on June 12, 2023, 11:34:21 AM
501(c)(3) entities have been supporting basketball players for years. Just not at the college level. Virtually every travel basketball program in the country is set up as a 501(c)(3). Most of the money being poured into youth basketball teams is deductible. Even when it’s for your kid’s team. I can’t speak to how many people actually take the deduction, but they could.  Most High School programs set up 501(c)(3)s for their offseason activities as well.

I’m not trying to counter your point of that they shouldn’t be deductible, but they are.

Youth travel teams are set up as 501(c)(3) organizations because one of the explicit exempt purposes outlined by the IRS is "fostering national or international amateur sports competition."  The players don't receive compensation - they are receiving the charitable benefits of the organization.  Coaches may be getting some compensation, but it could at least be argued that they are being paid to help the organization further its mission.

The difference with NIL collectives is that they are paying the players to perform another organization's charitable purpose. That is a pretty tenuous link to a charitable purpose.
Title: Re: Be The Difference, Serve The Time
Post by: dgies9156 on June 13, 2023, 07:39:40 AM
The IRS basically agrees with JB:

https://www.wsj.com/sports/irs-tax-edge-college-sports-booster-groups-427d403f?mod=Searchresults_pos1&page=1

From a Marquette standpoint, it comes down to this: Give to the Blue & Gold Fund, get a tax deduction.

Give to Be the Difference, fat chance.

Title: Re: Be The Difference, Serve The Time
Post by: Uncle Rico on June 13, 2023, 07:48:27 AM
The IRS basically agrees with JB:

https://www.wsj.com/sports/irs-tax-edge-college-sports-booster-groups-427d403f?mod=Searchresults_pos1&page=1

From a Marquette standpoint, it comes down to this: Give to the Blue & Gold Fund, get a tax deduction.

Give to Be the Difference, fat chance.

Already donated to Be The Difference.  Good tax accountant got me a deduction.  DM me for her name
Title: Re: Be The Difference, Serve The Time
Post by: dgies9156 on June 13, 2023, 07:56:47 AM
Already donated to Be The Difference.  Good tax accountant got me a deduction.  DM me for her name

Part of the WSJ article said the IRS is reviewing past rulings to change them. Thank you for donating to our future success but I hope the IRS doesn't audit you!
Title: Re: Be The Difference, Serve The Time
Post by: 4everwarriors on June 13, 2023, 07:59:11 AM
Petrocelli, me and sum of my posse will gladly visit ya at da Greybar Hotel, hey?
Title: Re: Be The Difference, Serve The Time
Post by: Uncle Rico on June 13, 2023, 08:07:13 AM
Part of the WSJ article said the IRS is reviewing past rulings to change them. Thank you for donating to our future success but I hope the IRS doesn't audit you!

That’s my accountants problem.
Title: Re: Be The Difference, Serve The Time
Post by: lawdog77 on June 13, 2023, 08:16:22 AM
That’s my accountants problem.
Good luck with that
Title: Re: Be The Difference, Serve The Time
Post by: Uncle Rico on June 13, 2023, 08:25:22 AM
Good luck with that

Natty’s are forever and that’s all that matters.  Plus, rich people don’t worry about taxes.  That’s for the poors
Title: Re: Be The Difference, Serve The Time
Post by: Dr. Blackheart on June 13, 2023, 08:52:56 AM
The IRS basically agrees with JB:

https://www.wsj.com/sports/irs-tax-edge-college-sports-booster-groups-427d403f?mod=Searchresults_pos1&page=1

From a Marquette standpoint, it comes down to this: Give to the Blue & Gold Fund, get a tax deduction.

Not even a deduction for your B&G seat donation anymore as you receive a benefit.  Although one could argue there were only hardships during the Wojo years.
Title: Re: Be The Difference, Serve The Time
Post by: LloydsLegs on June 13, 2023, 09:32:39 AM
An error on the tax return (or an "aggressive position") is not the accountant's problem from the IRS's (and the law) viewpoint.  And, the accountant is never (maybe in a fraudulent scheme concocted by the accountant where the taxpayer is a dupe, but even then it is doubtful) liable to you for your resulting taxes and interest paid to the IRS.  If you can prove negligence (difficult in this case, I would think), accountant may be liable to repay some of the fees charged to you for preparing the tax return, and, depending on your engagement agreement and jurisdiction, maybe for penalties and for your cost of addressing the issue with the IRS, but highly unlikely.  But the taxpayer is on the hook for taxes and interest with no legal (as opposed to business reasons which may drive the accountant to pay something) chance for reimbursement from the accountant.

Accountant could be separately penalized by the IRS.



Title: Re: Be The Difference, Serve The Time
Post by: Uncle Rico on June 13, 2023, 09:49:06 AM
Donate to Be The Difference and win natty’s.  End of story
Title: Re: Be The Difference, Serve The Time
Post by: StillAWarrior on June 13, 2023, 10:27:38 AM
An error on the tax return (or an "aggressive position") is not the accountant's problem from the IRS's (and the law) viewpoint.  And, the accountant is never (maybe in a fraudulent scheme concocted by the accountant where the taxpayer is a dupe, but even then it is doubtful) liable to you for your resulting taxes and interest paid to the IRS.  If you can prove negligence (difficult in this case, I would think), accountant may be liable to repay some of the fees charged to you for preparing the tax return, and, depending on your engagement agreement and jurisdiction, maybe for penalties and for your cost of addressing the issue with the IRS, but highly unlikely.  But the taxpayer is on the hook for taxes and interest with no legal (as opposed to business reasons which may drive the accountant to pay something) chance for reimbursement from the accountant.

Accountant could be separately penalized by the IRS.

I seem to recall that TAMU recently offered some good advice (https://www.muscoop.com/index.php?topic=48207.msg1556336#msg1556336) for dealing with Rico's posts.
Title: Re: Be The Difference, Serve The Time
Post by: muwarrior69 on June 13, 2023, 11:42:23 AM
Donate to Be The Difference and win natty’s.  End of story

Why don't you write a check directly to each player. The IRS allows up to a 17K gift tax free to the recipient. Of course you don't get a deduction.
Title: Re: Be The Difference, Serve The Time
Post by: Uncle Rico on June 13, 2023, 11:47:05 AM
Why don't you write a check directly to each player. The IRS allows up to a 17K gift tax free to the recipient. Of course you don't get a deduction.

I wish we could.  Years of free entertainment, I wish we could right checks to a lot of Marquette basketball players.
Title: Re: Be The Difference, Serve The Time
Post by: MU62 on June 14, 2023, 05:33:49 AM
Free entertainment? Where do you sit?
Title: Re: Be The Difference, Serve The Time
Post by: ZiggysFryBoy on June 14, 2023, 02:16:17 PM
Free entertainment? Where do you sit?

Rico sits under the bridge waiting for the billy goats.
Title: Re: Be The Difference, Serve The Time
Post by: Uncle Rico on June 14, 2023, 02:18:28 PM
Rico sits under the bridge waiting for the billy goats.

Suites.  Avoid the poors
Title: Re: Be The Difference, Serve The Time
Post by: 4everwarriors on June 14, 2023, 02:36:02 PM
How are them Homewood Suites, hey?