The Evolving Environment Of NIL-Based FundraisingThe Evolving Environment Of NIL-Based Fundraising

The U.S. Supreme Court’s decision in NCAA v. Alston¹ held the NCAA’s restrictions on student-athletes’ education-related compensation violated federal antitrust law under the Sherman Act. Many universities with strong athletic programs responded with the establishment of tax-exempt name, image and likeness (NIL) collectives that operate independently of affiliated universities and colleges. Their goal was soliciting donations from alumni and friends for ultimate distribution to athletes as compensation for endorsement deals, appearances, social media influencers and athletic instructors.

General Counsel Advice Memorandum (AM) 2023-004 (May 23, 2023) addressed whether developing NIL opportunities further an exempt purpose under Internal Re...