The IRS is about to show us how large some of the NIL collectives ACTUALLY are
Unless, of course, collective operators are lying on their tax forms
Good morning, and thanks for your continued support of Extra Points.
I’m on the record about this…I don’t believe most NIL collectives should be classified as 501c3 non-profits. I believe that most of their day-to-day operations run counter to the spirit, if not the letter, of current tax law, and that the additional regulatory requirements will be a bigger pain-in-the-butt than the ability for donors to write off donations on their taxes. It appears that most new collectives don’t agree with me, as the non-profit classification is increasingly popular.
When a collective registers as a non-profit, they have to file disclosure paperwork to the IRS…disclosure paperwork that is freely available to any nosy reporter who wants to find it.
Extra Points alumni Andy Wittry of On3 appears to have tracked down the first batch of IRS disclosure forms. The Temple collective The TUFF Fund filed their 990-N, which you could inspect yourself, if you felt so inclined, on the IRS website.
That disclosure form tells us that The TUFF Fund reported less than $50,000 in assets for 2022.
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