SEC
FILE - The SEC logo is displayed on the field ahead of the Southeastern Conference championship football game between Alabama and Missouri on Dec. 5, 2014, in Atlanta. Southeastern Conference leaders will continue debating what to do with their football schedule when they meet in the Florida Panhandle starting Tuesday, May 30, 2023. (AP Photo/John Bazemore, File)

The IRS Threatens to Shut Down Texas A&M’s NIL Foundation

First for NIL

Texas A&M has always been a front runner in the world of college NIL development. The phrase, everything is bigger in Texas, definitely applies to the Aggies’ efforts to grow student athlete NIL promotions. The 12th Man Foundation of Texas A&M is a collective and non-profit that was first launched in February. The 12th Man upped its game making their collective a section (501) charitable organization. The mission for The 12th Man collective is to fund scholarships for athletes, and generate money for the program’s facility’s growth to foster championships.

The move that Texas made that other collectives, since launched, have shied away from is the non-profit aspect. The collective in its mission statement said that the 400 student athletes are what the foundation is helping. ” Your support insures these young men and women leave Texas A&M prepared for the next step in their lives,” as stated on the website. The money that this foundation generates is directly benefiting Aggie student-athletes, whether that is in the classroom or during competition.

Making Changes

As of the start of July the Aggies have continued strong with no fear of the NCAA or the IRS. even launching a new program at the university called Amplify.  The program designed for student athletes is an innovative NIL informational program designed to teach Aggie student-athletes how to maximize their platforms. In turn this would generate a huge buzz for the university using their athletes as marketing tools.

But at the beginning of August the IRS is now knocking, and the 12th Man Foundation is now shut down. The decision to shut down the fund came from the University, as the IRS released a memo earlier in June, telling several NIL collectives like the Texas non-profit that their function doesn’t qualify under the tax-exempt status. It was found that because collectives like the 12th Man Foundation were attempting to reward donors with points for tickets and other exclusive offers, as well as tax benefits in exchange for collective donations for student athletes, it could no longer function as a collective in that way.

The foundation released a statement, saying it will be “altering its approach to NIL, which includes discontinuing the 12th Man+ Fund.” It added that “this decision was made to ensure the 12th Man Foundation meets its high standards for compliance and to protect the organization’s mission.”

Moving forward Texas A&M has made efforts to reach out to the Foundation’s donors, in hopes of redirecting their funds to university approved organizations. But as the next school year and athletic season is right around the corner the 12th Man organization says it remains committed to supporting student athletes. The collective moving forward in their rebuild will still support NIL for players through their marketing efforts rather than direct payment to donors.

About Brooke Ginaitt

Check Also

Orange & Blue Sports Network

Catch the student-led broadcasts from the College of Journalism and Communications right here.

LIVE THREAD: National Signing Day

Here’s an updated thread of all the recruits who picked the Gator hat today! RB …

AFC Divisional Round Preview: Pittsburgh Steelers

During last weekend’s NFL Wild Card round, the Steelers made a statement by handing the Dolphins a …

Houston Looking For an Upset in Foxborough

The saying has always been “it’s hard to beat a good team twice,” and in …

Blue Jackets vs. Lightning Tonight

The Columbus Blue Jackets and the Tampa Bay Lightning will be facing each other once …

Possible Additions to McElwain’s Recruiting Class Visiting this Weekend

With National Signing Day less than three weeks away, the Gators are hosting several talented …

Florida Gymnastics Prepares for Season Opener

https://vimeo.com/198372157 GAINESVILLE, FL – The Florida Gator gymnastics team will kick off their season this …

Surprised Gators Promote Randy Shannon To Defensive Coordinator? You Shouldn’t Be

Florida’s head coach, Jim McElwain, announced Friday morning that Randy Shannon would be making the …

Quarterbacks in Spotlight for NFL Wild Card Weekend

The NFL Wild Card kicks off Saturday and the quarterback situations could not be any more different. On …

College Football Playoff Shakes Up Schedule

The College Football Playoff was a success in its first year. Yet, that doesn’t stop …

Michael Jordan Speaks out about Shootings, Police Officers

NBA great Michael Jordan opened up about his thoughts about shootings of African-Americans and the …

Treon Harris to Transfer

With the college football season approaching, the Florida Gators have announced that former starting QB …

USA Basketball Wins Second Exhibition Game

Just a few short days after their big win over Argentina, team USA won its …

Charlotte Is No Longer The Home Of The 2017 NBA All-Star Game

The House Bill 2 came between Charlotte, North Carolina and the 2017 All-Star Game. The …

Tampa Bay Rays Continue Series Against Oakland

The Tampa Bay Rays are continuing their three-game winning streak. The Rays defeated the Oakland …

MLB Preview Tonight

It’s summer time—the best time to go to a baseball game and experience the atmosphere. …

Braves Begin Series With Rockies

The Atlanta Braves (33-62) open up a four-game road series with the Rockies (43-51) tonight …

Marlins To Close Out Series With The Phillies

The Miami Marlins are in the middle of a crucial ten game span against NL East …

Rays Crush Rockies 11-3, Face A’s Next

In the midst of a terrible season that has seen the Tampa Bay Rays (37-57) …

American League Second Half Outlook

The second half of the baseball season is in full swing which translates to? Pennant races. Teams …

National League Evening Preview

Tonight is a busy night for the National League in the MLB. Starting with the …

Big 12 Looks To Expand

Following a Tuesday meeting between Big 12 presidents, Oklahoma president David Boren announced that the …

LSU Looks To Capitalize On Its Opportunity

The Louisiana State University Tigers will enter the 2016 college football season with high expectations, …

Muschamp Helps Close Out SEC Media Days 2016

It wasn’t Will Muschamps first SEC Media Days experience, but 2016 marked the first time …

Phil Mickelson Leads British Open After First Day

The 145th annual 2016 British Open is underway at Royal Troon Golf Club in Scotland. The …

Missouri’s Football Crisis: Rebuilding A Program

On the final day of SEC Media Days, Barry Odom took the stand as Missouri’s head …

Second Half Of MLB Season Begins

The All-Star Break is a good time for teams to rest up and reform themselves …

British Open Underway

The 145th Open Championship is already underway at the Royal Troon Golf Club in Scotland. Welcome …

Pat Dooley’s Back Nine: 9-3 Record Gets Florida In College Football Playoff

The Back Nine comes at you after a great weekend that led right into the …