Getting pulled into an engagement with a regional firm to do some work in an assessment on the Spyre Sports non-profit for UT. Probably going to turn into a consulting engagement if we find stuff for them to work through. It's run by significant businessmen so it should be relatively solid.
I'm very intrigued. Kicking that off in mid-June or early July.
I've been skeptical of how the **** these get by as a 501 - albeit I don't have much exposure with them or much more than a basic understanding of it. Can't imagine they skate by much longer without the IRS getting their hands in it.
Yeah, I'm truly fascinated by this stuff. You haven't had many times over the past 100 years that something ENTIRELY NEW comes into the tax laws.
On one hand, the IRS has traditionally given a wide berth to charitable organizations, so as to respect various religions and charitable pursuits.
But on the other hand, we probably need some bright-line guidance on what "does qualify" and what "does not qualify" for charitable deductions. As
@wspcane pointed out, you apply for 501c status and have to wait 9 months for a determination, but in the meantime, most organizations start operating as if they WILL be approved.
And then you layer on top of that...the concept that these sports-related Collectives are a brand-new legal/accounting creation...and I really don't know what the answer will be.
To give an example...if I started a "not-for-profit" to raise money for YOU...that's not really what the 501c organizations were intended to do. You can be a great guy, and deserving of the fund-raising...but that doesn't mean that contributions were made with a true donative and charitable intent...
To say it a different way...I realize what we WANT and ENVISION these Collectives to be...to help out these athletes...but the eventual question would be, why don't we all set up "Collectives" to give people charitable contributions if they contribute to, say, our kid's college fund? Or if that's a problem under the existing rules, maybe I set up a Collective to raise money for YOUR kid's college fund, and you set up one to raise money for MY kid's college fund.
I don't know, this is going to go in a very weird direction if the IRS doesn't give some solid guidance, and soon.