Since the introduction of name, image, and likeness (NIL) in college athletics three years ago, many schools have created ‘NIL Collectives’ as a way for donors to help schools offer NIL money to student-athletes. The University of Texas is no exception with their collective, the Texas One-Fund which distributed $11.7 million to student-athletes. A Sportico article revealed that One Fund raised almost $10.5 million in 2023, and they spent more than $13.3 million. Other distributions went to Charity Grady, the One Fund’s athletic director who received $138,461, and the JHL Company, an event management company in Austin, who received $230,998 for management and fundraising. They also paid Opendorse $621,548 after using the platform to distribute $9 million to athletes, accrued almost $600,000 from sponsorship fees, and spent another $600,000 on a variety of things such as advertising and promotion, meetings and conferences, and renting event space. The One Fund is now one of the richest organizations doling money out to college athletes, making Texas athletics even richer. The money from this fund comes on top of money from other donors, and Texas reportedly received $86 million in donations during the 2022-2023 school year. In an effort to incentivize donations, the Longhorn Foundation announced in August that people who contributed to the One Fund would receive “Loyalty Points” which could help them receive better access to football season–tickets. The One Fund was also the first NIL collective to sign a deal with Jake Paul and Joe Montana’s content creator platform “Passes” involving 40 Longhorn athletes across a variety of sports. Recently, NIL collectives have fallen under criticism from the IRS due to their tax-exempt status as 501(c)(3) non-profits. This has meant that donors have been able to write off donations to their favorite college team on their taxes, but that is potentially coming to an end. The IRS issued a memo in June of 2023 saying that NIL collectives serve a “substantial non exempt purpose” which would put them out of compliance with the Tax Code. The BPS Foundation, a large multi-school NIL collective, dissolved at least one of its partners at the end of 2024 due to scrutiny from the IRS concerning their exemption status. With new regulations and rules coming out as a result of the House settlement, the collectives are facing a new kind of scrutiny as any payments they disperse to athletes will be subject to review by the NCAA and could be denied if they are found to be outside of the “fair-market value”.

Texas One Fund Pays More than $11 Million Dollars to University of Texas Athletes

The BPS Foundation, a large multi-school NIL collective, dissolved at least one of its partners at the end of 2024 due to scrutiny from the IRS concerning their exemption status. The One Fund is now one of the richest organizations doling money out to college athletes, making Texas athletics even richer. The money from this […]

The BPS Foundation, a large multi-school NIL collective, dissolved at least one of its partners at the end of 2024 due to scrutiny from the IRS concerning their exemption status.
The One Fund is now one of the richest organizations doling money out to college athletes, making Texas athletics even richer. The money from this fund comes on top of money from other donors, and Texas reportedly received million in donations during the 2022-2023 school year.
Recently, NIL collectives have fallen under criticism from the IRS due to their tax-exempt status as 501(c)(3) non-profits. This has meant that donors have been able to write off donations to their favorite college team on their taxes, but that is potentially coming to an end. The IRS issued a memo in June of 2023 saying that NIL collectives serve a “substantial non exempt purpose” which would put them out of compliance with the Tax Code.
A Sportico article revealed that One Fund raised almost .5 million in 2023, and they spent more than .3 million. Other distributions went to Charity Grady, the One Fund’s athletic director who received 8,461, and the JHL Company, an event management company in Austin, who received 0,998 for management and fundraising.
Since the introduction of name, image, and likeness (NIL) in college athletics three years ago, many schools have created ‘NIL Collectives’ as a way for donors to help schools offer NIL money to student-athletes. The University of Texas is no exception with their collective, the Texas One-Fund which distributed .7 million to student-athletes.
They also paid Opendorse 1,548 after using the platform to distribute million to athletes, accrued almost 0,000 from sponsorship fees, and spent another 0,000 on a variety of things such as advertising and promotion, meetings and conferences, and renting event space.
With new regulations and rules coming out as a result of the House settlement, the collectives are facing a new kind of scrutiny as any payments they disperse to athletes will be subject to review by the NCAA and could be denied if they are found to be outside of the “fair-market value”.
In an effort to incentivize donations, the Longhorn Foundation announced in August that people who contributed to the One Fund would receive “Loyalty Points” which could help them receive better access to football season–tickets.
The One Fund was also the first NIL collective to sign a deal with Jake Paul and Joe Montana’s content creator platform “Passes” involving 40 Longhorn athletes across a variety of sports.