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The nonprofit status of NCAA athletic departments is starting to raise questions
Cantwell says athletics look increasingly like businesses as schools share revenue with athletes and donors direct hundreds of millions to sports.
- In November 2025, U.S. Sen. Maria Cantwell submitted a letter to the Congress Joint Committee on Taxation questioning whether college athletic departments should retain their tax-exempt status, arguing they operate as businesses only loosely tied to the university.
- Nonprofits typically receive tax-exempt status for fostering "amateur" sports competition, yet the NCAA now allows athletes to earn money through endorsements and direct payments, complicating the traditional definition of amateurism that justifies the tax designation.
- CBS and Turner pay the NCAA about $1.1 billion annually through 2032 for broadcast rights, while donors gave $401 million to Michigan State University in December 2025, with over 70% designated for athletics.
- Losing tax-exempt status would force athletic departments to pay taxes, and donors would no longer receive tax deductions for gifts, potentially shifting philanthropic support toward causes more closely aligned with traditional nonprofit missions.
- Voices across academia and politics continue questioning whether athletic departments should retain tax-exempt status as athletes increasingly leverage the transfer portal and earn over 10 times what professional counterparts make through sponsorships and direct payments.
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The Conversation+23 Reposted by 23 other sources
The nonprofit status of NCAA athletic departments is starting to raise questions
University of Michigan star forward Yaxel Lendeborg revealed that he'd been offered millions of dollars to transfer to another school. Gregory Shamus/Getty ImagesWith all the talk of busted brackets, game-winning shots, point spreads and Cinderellas, it was easy to miss the eye-popping offer University of Michigan star forward Yaxel Lendeborg claimed to have received during the first weekend of March Madness. Lendeborg told The Associated Press …
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Total News Sources24
Leaning Left2Leaning Right3Center8Last UpdatedBias Distribution62% Center
Bias Distribution
- 62% of the sources are Center
62% Center
15%
C 62%
R 23%
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