Well if the WeWill Collective has already been granted the not for profit status then they are not for profit and donations are tax deductible UNTIL the IRS specifically informs them otherwise. And a general release by the IRS is not sufficient to do this. WeWill would have to receive a specific notice revoking their not for profit status.
NIL donations taxable?
- Thread starter acoustimac
- Start date
Well if the WeWill Collective has already been granted the not for profit status then they are not for profit and donations are tax deductible UNTIL the IRS specifically informs them otherwise. And a general release by the IRS is not sufficient to do this. WeWill would have to receive a specific notice revoking their not for profit status.
- Mar 27, 2006
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Well stated. You're far more of an expert on tax law than I will ever be. Do you know if it stands to reason that any attempts to retract tax exempt status would be appealable?
You could appeal. Historically revoking not for profit status is not common, it takes the not for profit doing something really bad to make this happen.
Not to get to far off topic but look at the Church of Scientology. They knew once they got the Not for Profit letter and they were golden and home free, now they literally own cities.
No kidding, things can always change. If Blum continues to run it the same, wewill will always be a tax deduction donation. Your original post was incorrect how you stated what was going on from that article. Your opinions on podcasts are fine, but not needed.
While its possible things change, its also true that not all NIL collectives operate the same. Given those differences, it seems unlikely that the IRS would blanket-ban all of them, and more likely the IRS would issue clarifications and requirements that a collective may need to fall within to remain tax exempt. How strict those are would determine if it is feasible for any of them to remain tax exempt and still accomplish their goals.
Granted none of them are the most charitable use of dollars (and honestly probably shouldnt be tax deductible imo), but that is true for a lot of tax-deductible nonprofits (and reform in that regard is a much broader topic than we'll ever address in this thread)
Completely agree. NIL is a Wild West with little guidance. Some, perhaps like We Will, may have better guidance to avoid pitfalls. But because it is the Wild West so far…it’s also a possibility the IRS can change its viewpoint and rulings. Just because they said one thing in recent weeks doesn’t mean they can’t change in the coming weeks.
"Always" when it comes to the IRS might be a stretch. My original post (I should have used quotation marks) was actually a quote and not incorrect. As for my opinions…I was asked if I listened and I figured I’d best support my answer before I was blasted for not listening to it. I was a professional podcaster for years until I retired, hence my rationale.
Wonder if this notice by IRS will throw a curveball to a lot of collectives like Iowa State. Sounds like for charitable collectives to be tax exempt most of the money needs to go to charities vs. athletes. The article speaks with Ohio State collective person.
Seems like the NCAA needs to get things figured out quick on NIL.
Charitable Collective Not Tax Exempt
Seems like the NCAA needs to get things figured out quick on NIL.
Charitable Collective Not Tax Exempt
Interesting and opposite reactions to the IRS memo from two of the Ohio State 501(c)(3) NIL collectives...one is going to shut-down his non-profit and continuing operating his for-profit space, while the other will be business as usual. The first one was getting donations from big $$$$ folks looking for tax deductions.
Ohio State nonprofit NIL collectives to move in opposite directions after IRS memo
The IRS has cast doubt on the tax-exempt status of nonprofit NIL collectives, a view that is poised to further reshape the landscape at Ohio State.
www.dispatch.com
