Have you heard anything about non-profit organizations paying marketing/advertising fees to NIL Collectives based on $ donated to their organization? To me it seems questionable but I had a client of mine ask me about it.
Basically how I understand it:
1. 501c3 organization holds a drive to raise $ for XYZ University Football with goal of $25k. All donations are made to that 501c3 so donors receive tax deductible donation.
2. 501c3 org pays that $25k to NIL for advertising/marketing which includes athletes promoting/volunteering for them and ads at games.
Just curious whether others have heard of anything like this. To me it seems questionable that you can do this when the non-profit has no mission tied to athletics and basically serve as a tax-deductible pass through in return for advertising.
But, it seems like something this collective is confident can be done.
Basically how I understand it:
1. 501c3 organization holds a drive to raise $ for XYZ University Football with goal of $25k. All donations are made to that 501c3 so donors receive tax deductible donation.
2. 501c3 org pays that $25k to NIL for advertising/marketing which includes athletes promoting/volunteering for them and ads at games.
Just curious whether others have heard of anything like this. To me it seems questionable that you can do this when the non-profit has no mission tied to athletics and basically serve as a tax-deductible pass through in return for advertising.
But, it seems like something this collective is confident can be done.
