Nonprofit formation offers deductible donations but triggers IRS charitable purpose scrutiny when compensating athletes.

Formation Steps

  1. Incorporate nonprofit corporation in chosen state.
  2. Apply for EIN from IRS.
  3. Draft bylaws with independent board requirements.
  4. File Form 1023 or 1023-EZ for exempt status — budget 3–12 months for approval.
  5. Register as charity in solicitation states.

Charitable Purpose Framing

Counsel typically frames missions around educational and community benefit of NIL education, youth engagement, and amateur sports support — not winning games.

Ongoing Filings

Annual Form 990, state renewals, UBIT analysis for sponsorship income, and donor acknowledgment compliance.