The foundation that supports Texas A&M athletics announced Wednesday it is closing the branch set up for donors to support endorsement deals for Aggies athletes, an effort that has pushed the boundaries of how closely a school's traditional fundraising and booster groups could get involved in payments to players.
The 12th Man Foundation said it will still engage in name, image and likeness activities with Aggies athletes using "unrestricted donations." But it noted "external advisers" recommended shutting down the 12th Man+ Fund, which had just been launched in February.
The foundation cited a June memo from the Internal Revenue Service that said nonprofit "collectives" that were created primarily to pay players are likely not exempt from taxes, meaning donations would likely not be tax deductible.