Nonprofit Status Helps College Teams Draw Donations

Amateur Athletic Union basketball teams are now commonly set up as nonprofit groups in order to accept large cash donations that help channel top recruits to select college programs, reports The Washington Post.

The AAU teams’ nonprofit status makes donations tax-deductible and ensures they don’t have to reveal the names of donors. Donations often come from college boosters, but many college coaches are aware and approve of the financial aid to prospective students, which violate NCAA rules.

In exchange for the money—which provides high-school-age or younger players with travel expenses, meals, and athletic gear—AAU coaches push players to certain college programs. Gifts range from $20,000 to $50,000, and coaches cited in the article said they have lost recruits for refusing to offer gifts.

A few observers defended the practice in certain cases, pointing out that nonprofit status allows teams with less elite players to accept legitimate gifts. Most, however, agreed that the practice corrupts: “While it is different from handing somebody a bag full of cash,” said an anonymous AAU coach, “the intent is the same.”

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