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Bad day for athletics fundraising

flyonthewall

By flyonthewall
in Mean Green Football

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flyonthewall Rising Star

flyonthewall

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2 hours ago, TreeFiddy said:

Where there is a new tax law, there is usually a new tax avoidance strategy not far behind...

You are correct.  It just seems odd that this bill singles out benefits for athletics, and not theater, arts, other areas.

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southsideguy Grand Master

southsideguy

Posted
Posted (edited)
39 minutes ago, flyonthewall said:

You are correct.  It just seems odd that this bill singles out benefits for athletics, and not theater, arts, other areas.

You thank the big boys for this law.  It will hit them hard I think.  I dont do it for the donation (tax break) I do it for Mean Green sports.  Then again i dont own a suite and sit with the little people at the 40.

Edited by southsideguy
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TreeFiddy Proficient

TreeFiddy

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22 minutes ago, flyonthewall said:

You are correct.  It just seems odd that this bill singles out benefits for athletics, and not theater, arts, other areas.

I will defer to @oldguystudent but I was under the impression that the new rules will impact anything that has donations tied to seat purchase. Sports, theater, music/opera, etc.  They are giving lip service to a supposed reduction in business taxes that will offset the limits on deductions, but that remains to be seen.

On a fun note, it looks like the schools that are paying their coaches over $1M annually are going to get hit with extra taxes.  This has the P5s screaming.  

southsideguy Grand Master

southsideguy

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11 minutes ago, TreeFiddy said:

I will defer to @oldguystudent but I was under the impression that the new rules will impact anything that has donations tied to seat purchase. Sports, theater, music/opera, etc.  They are giving lip service to a supposed reduction in business taxes that will offset the limits on deductions, but that remains to be seen.

On a fun note, it looks like the schools that are paying their coaches over $1M annually are going to get hit with extra taxes.  This has the P5s screaming.  

could not happen to a better group of coaches.  The big boys have screwed up the college football game.

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BillySee58 Grand Master

BillySee58

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37 minutes ago, oldguystudent said:

They're doing away with the 80% deduction directly related to tickets.  If I'm the AD, I restructure to massive percentage of unrestricted gifts, and a very small price for season tickets. 

How much do you think making entertainment expenses fully non-deductible for businesses affect UNT sports? I'm sure it'll affect professional sports more, but I'm not sure how many businesses have season tickets at Apogee.

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KRAM1 Rookie

KRAM1

Posted
Posted
13 hours ago, TreeFiddy said:

Where there is a new tax law, there is usually a new tax avoidance strategy not far behind...

This! Way way too early to say one way or the other. Remember, you did not get “full” tax credit anyway this year. I think 80% was countable. Just re-classify and create new “credits” for buying premium seats. We have far too many creative tax accountants around to not figure this out. Every NCAA program is working on it...and word will spread fast through the Tanaka. I recall when they first started to reduce to 80%. Lots of gnashing of teeth and hand wringing then too.

Best advice for now...either standby and wait or get those next year donations in before the end of the year.

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oldguystudent Newbie

oldguystudent

Posted
Posted (edited)

We're going to have a thorough review of the new law in February led by a guy who is as smart as he is boring. 

I've read some of it, and it's, well, it ain't written by English majors.  There are some major points that have the highest level of tax experts scratching their heads going, "What the hell does this mean?"

I have one client for whom the definition of a single word, still very unclear, will swing his taxable income $17 million up or down.  

There are going to be lawsuits, regulations, and of course, tax accountants and lawyers sitting in rooms figuring out new tax avoidance strategies as @KRAM1 correctly remarked.  

Just sit tight, all.  They pay us the mediocre bucks to figure these things out. 

Edit:  I'll add to this that this bill is all encompassing.  It's so comprehensive that I imagine they'll end up calling it the tax code of 2017 a la Reagan's massive changes that we now call the tax code of 1986.  I don't know how they came up with so many things to affect in such a short period of time, but here we are.  It's gonna be a while before the dust settles and people figure out where everybody stands, and money gets redirected to the most advantageous paths. 

Edited by oldguystudent
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TheColonyEagle Grand Master

TheColonyEagle

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6 hours ago, oldguystudent said:


I have one client for whom the definition of a single word, still very unclear, will swing his taxable income $17 million up or down.  
 

I'm really hoping you come through for me this year....

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SteaminWillieBeamin Mentor

SteaminWillieBeamin

Posted
Posted (edited)

Not that is matters currently, but I know some fence sitters up in the club level that are all paid off, but have soured on the whole gameday cost and have decided to not renew and let them lapse. I can imagine that some people, without the incentive of some money back on their club level investment may go ahead and let them lapse too.

I, am not one of those people, but the bonus of writing off the MGC does play into where we do our end of the year holiday donations. We don't exchange gifts in my family, we donate to charities in the recipient's name. Definitely makes me want to veer toward ACLU or the Innocence Project with that end of year donation instead of upping the MCG. We can go back to the base level for MCG to have all our club seats. Donation pools are zero sum.

Anyhow, just pointing out the edge cases where this does have an impact.

 

 

Edited by SteaminWillieBeamin
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SilverEagle Mentor

SilverEagle

Posted
Posted

You know, if this new tax bill was going to adversely affect donations  to college football programs, then we would all have heard a loud protest from all of the big time programs and their big time doners.  So, the silence from all of those programs tells me that there are "work arounds" on it.

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Christopher Walker Collaborator

Christopher Walker

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Posted (edited)
6 minutes ago, SilverEagle said:

You know, if this new tax bill was going to adversely affect donations  to college football programs, then we would all have heard a loud protest from all of the big time programs and their big time doners.  So, the silence from all of those programs tells me that there are "work arounds" on it.

No, this is what happens when you keep things locked tight and behind closed doors until the last minute. Most institutions affected in this way will not yet of had the time to process this and respond. Even a majority of senators when probed on their positive indications towards particular provisions admitted to not having read the bill and were just trusting leadership.

Yikes, man, yikes.

Edited by Christopher Walker
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