NCAA Defends Tax-Exempt Status to Congress

The president of the National Collegiate Athletic Association sent a 25-page letter to Congress defending the group’s tax-exempt status after it was criticized for colleges’ spending on men’s basketball and football programs, reports The Chronicle of Higher Education.

The letter was a response to a letter sent last month by Rep. Bill Thomas, a California Republican and chairman of the House Committee on Ways and Means, which suggested that the highly profitable sports may be distracting colleges from education.

Myles Brand, the NCAA’s president, argued in his letter that universities with top sports teams give $1.5-billion in athletic scholarships annually, often to low-income students who would not be able to afford college on their own. He also defended coaches’ salaries and travel expenses.

The Senate Finance Committee plans to hold a hearing on December 5 about tax abuses by institutions of higher education.

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