By Mark Heim, al.com (TNS)
Texas A&M announced Wednesday it was “discontinuing” the 12th Man Plus fund, which provided coveted “priority points” and tax-deductible donations in regard to name, image, and likeness.
“On June 9, the IRS released a generic legal advice memorandum providing specific guidelines for non-profit organizations that engage with student-athletes for their … (NIL),” an A&M statement read Wednesday. “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.”
The IRS says collectives may not qualify as tax-exempt if the main objective is paying players. Therefore, if the collectives aren’t tax-exempt, the donations collected wouldn’t be either.
The 12th Man Foundation, however, still continues to promote and support NIL opportunities through marketing outreach, the statement read.
“Supporters who have contributed to the 12th Man+ Fund will be contacted directly by 12th Man Foundation staff with their options including ways to redirect their contribution and continue investing in the student-athlete experience at Texas A&M.”
Texas A&M announced the 12th Man Plus fund in February as a fundraising arm of the 12th Man Foundation. With it, donors would receive priority points for better seating and parking options at Texas A&M sporting events.
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©2023 Advance Local Media LLC. Visit al.com. Distributed by Tribune Content Agency LLC.
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