Lipp & Crawford: “Donating to College Athletics: A Taxing Gesture of Kindness”

Bridget Crawford (Pace) and Troy Lipp (Pace) have posted on SSRN Donating to College Athletics:  A Taxing Gesture of Kindness (Tax Notes 2011).  Here is the abstract:

This article considers the tax consequences of a booster’s contribution to a college athletics program, using the case study of financier Robert Burton’s multi-million dollar contribution to the University of Connecticut football program.  This article discusses the income and gift tax issues that arise in connection with gifts made in contemplation of corresponding benefits, as well as potential tax consequences if a donor subsequently withdraws a gift.  Donors who expect a role in a team’s affairs may face unfavorable tax consequences.

NAM