Any donated proceeds received by us from your contributions will go either to NIL activities involving the team(s) of your choosing, or if you select “General Fund,” they will go into a general NIL fund and be disbursed in an equitable manner as determined by our program committee. This committee is comprised of a group of loyal and trusted Wolverines who lend their relationships, insights, perspectives, experience, and skill sets to the development and implementation of our NIL programs.

Valiant is dedicated to conducting its NIL activities in a manner consistent with Michigan’s high standards by, among other things:

•   Operating in compliance with NCAA, State of Michigan, and University of Michigan rules, policies, guidelines and laws;
•   Designing our NIL activities in a manner intended to not run afoul of NCAA restrictions on inducements to attend Michigan or ‘pay for play’; and
•   Utilizing our deep relationships with the University of Michigan’s administration, coaches and student-athletes to ensure that our NIL programs operate consistent with each sport’s culture and the university’s high standards for ethics and compliance.

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/