DONATION TERMs

Any donated proceeds received by us from your contributions will go toward NIL activities involving members in good standing of the 2023 Michigan football team in a manner as determined in the discretion of our leadership team. This team is comprised of a group of loyal and trusted Michigan supporters who lend their relationships, insights, perspectives, experience, and skill sets to the development and implementation of our NIL programs in a manner consistent with Michigan’s high standards.

Tax Deductibility of Contributions

Individual contributions to support our NIL offerings are generally not tax deductible. While we recognize the desire for individuals to maximize tax efficiency in supporting NIL activities, the laws and IRS regulations governing the tax deductibility of contributions made to support NIL activities (even if made to a 501c(3) or other “tax exempt” organizations) are rigid and complex. Therefore, in order to ensure the tax deductibility of such contributions, the underlying NIL activity must be carefully crafted to ensure compliance with these regulations. For supporters who desire to ensure the valid tax deductibility of their contributions, we will endeavor to curate (in consultation with the donor’s tax professionals) NIL programs that dedicate those contributions to NIL activities that comply with IRS requirements for a legitimate charitable purpose. Please contact us if you are interested in creating such a program.

We recognize that many NIL-related organizations across the country are making blanket claims that all contributions made to them are tax deductible because they are a 501(c)(3) or another tax-exempt organization. However, in order for contributions to an organization (even a registered 501(c)(3)) to be tax deductible, the organization must be legitimately organized and operated to further a limited list of specific, exempt charitable purposes defined by the IRS. These IRS restrictions, if adhered to, severely limit the nature and scope of NIL activities that can be legitimately undertaken by a charitable organization. If the underlying NIL activities of an organization do not fit within these parameters and/or the 501(c)(3) does not operate in compliance with other IRS restrictions, then contributions made to such organization may not be tax deductible. We recommend you seek advice from your tax advisor before claiming a charitable deduction for contributions made to a 501(c)(3) or other organization whose primary purpose is to support broad NIL activity.

For more information on this topic, see: https://www.on3.com/nil/news/why-are-u-s-senators-introducing-bill-targeting-501c3-nil-collectives/