Texas A&M's 12th Man Foundation issues statement about NIL after IRS memo
The 12th Man Foundation put out a statement on Wednesday that it plans to discontinue its name, image and likeness arm, the 12th Man+ Fund, following an IRS memo from earlier this summer.
The IRS earlier offered its legal stance on tax-exempt NIL collectives and funds.
The IRS determined that such collectives may not qualify as tax-exempt if their main purpose is paying players instead of supporting charitable works. If the collectives aren’t tax-exempt, the donations they collect may not be either.
“The operation of the 12th Man+ Fund is impacted by this new guidance.
Following consultation with external advisors, the 12th Man Foundation is altering its approach to NIL which includes discontinuing the 12th Man+ Fund. This decision was made to ensure the 12th Man Foundation meets its high standards for compliance and to protect the organization’s mission.
This decision does not prevent the 12th Man Foundation from supporting NIL opportunities for Aggie student-athletes. As part of its altered approach, the organization plans to support NIL opportunities for Aggie student-athletes by expanding its marketing outreach using unrestricted annual fund contributions.”
The 12th Man Foundation, Texas A&M’s primary athletics fundraising arm, announces that it will discontinue the 12th Man+ Fund, which was created for NIL activities.
Full announcement: pic.twitter.com/0bFtvKPnHF
— Sam Khan Jr. (@skhanjr) August 9, 2023