On the heels of an IRS ruling that NIL payments do not qualify as charitable works, putting the collective’s tax-exempt status in doubt, an OSU collective says it may shut down within months.
With all the high power tax attorneys who are graduates of there schools, you would think they would have figured out a way to do this legally.
But I’d guess they will have to go to the old "needs"standards for support, and most of these kids probably would qualify for a general needs scholarship if they had applied to be a regular student.
But it does get more interesting …
The NFP NIL cooperatives always struck me as the old SWC $100 handshake in a slightly more sanitary form.
I’m all for endorsement deals, because you know who’s getting paid by whom for what, if not necessarily how much.
Moreover, endorsements, image-related products and even social media influencers can all have major downside risks, as a shoe company and a beer company have recently found out.