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New Tax Law Could Prove Costly for College Athletics

With schools relying so much on donor generosity, it’s easy to see why everyone from conference commissioners, athletic directors, to even the donors themselves, are trying to wrap their heads around the impact of the revised new tax codes. A provision of the new Tax Cuts and Jobs Act (TCJA), which took effect in January, eliminated the 80 percent deduction for donations to university athletic departments.

Not only are donations being affected, according to The Salt Lake Tribune, schools may also be subject to excise taxes for coaching salaries. These athletic programs are faced with paying 21 percent excise taxes for every dollar over $1 million paid to their highest-salaried employees, in most cases football coaches, under the new law.

Click here to see how your schools funds could be impacted.

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