74 Am. U. L. Rev. 1477 (2025).

Abstract

Since the emergence of name, image, and likeness (NIL) opportunities for NCAA student-athletes, the IRS continues to scrutinize and ultimately deny many NIL collectives’ claims for section 501(c)(3) tax-exempt status, particularly questioning their asserted charitable purposes. This Note explores the foundation of the IRS’s reasoning and argues that the IRS tangles key legal requirements, undervalues the public benefits generated by NIL collective activities, and applies inconsistent standards that overlook the educational and amateur sports charitable purposes these collectives can serve. By addressing the inconsistencies in the IRS’s reasoning, NIL collectives may chart a viable path toward securing tax-exempt status.

* Senior Articles Editor (Internal), American University Law Review, Volume 74; J.D. Candidate, May 2025, American University Washington College of Law, NCAA Division I Gymnast & B.S., Business Administration, May 2020, Towson University. In addition to the American University Law Review staff for their meticulous edits, I extend sincere gratitude to Professor Benjamin Leff and Professor Darryl K.Jones for their valuable feedback and insightful discussion.