Universities and colleges meet this prima-facie requirement by virtue of being educational organizations, one of the “presumptive” categories of charitable exemption listed in 501(c)(3). Unless an athletic department were separately-incorporated, therefore, 28 it makes no sense to talk about “college athletics” as being tax exempt. Particular activities are not tax-exempt – entities are (though particular activities of an exempt organization might nevertheless be subject to tax under the UBIT described above). Colleges and universities clearly are engaged in “the instruction or training of the individual for the purpose of improving or developing his capabilities” which the Treasury Regulations state is an educational purpose.29 Therefore, they clearly meet the prima-facie charitable purpose piece of the operational test. …show more content…
The amount of time and current form of compensation are insufficient for the amount of money is earned off of these student-athletes and how much time they put in, only to benefit multiple multibillion dollar associations and leagues. I have yet to mention one of the biggest reason why student-athletes should be paid. A lot of NCAA athletes, most of whom are among many of the biggest earners for the NCAA, come from impoverished backgrounds. According to a study on poverty in the NCAA by National College Players Association (NCPA), they found that: “Percentage of FBS schools whose "full" athletic scholarships leave their players in poverty: 85% on campus, 86% off campus” (NCPA). Student-athletes work their tails off to accomplish their task on and off the field to only live off of nothing, while the NCAA and sports leagues are benefiting off of their free labor. Not only is this unjust, it is probably illegal. It has to change, and I am not qualified to propose a specific plan for paying players as this is a big issue with a lot of variables to figure how much a specific player is worth and pay them according to they are worth, or if it should be evenly spread across athletics. That is a different debate for another day, first we must come together in a fight against the NCAA. The information is too readily