IMPACT OF THE TAX CUTS AND JOBS ACT OF 2017 ON CHARITABLE CONTRIBUTIONS TO BIG TEN INTERCOLLEGIATE ATHLETICS
Open Access
Author:
Purnell, Emily
Area of Honors:
Accounting
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Edward Rowland Jenkins, Jr., Thesis Supervisor Samuel Burton Bonsall IV, Thesis Honors Advisor
Keywords:
tax TCJA athletics fundraising accounting charity donations taxpayers Big Ten Penn State football
Abstract:
College football over the last few years has been concerned around one thing and one thing only: the playoffs. Who will be in the playoffs this year? Should the playoffs be expanded to include more teams? Should conference winners automatically enter the playoffs? So much uncertainty surrounds the topic of playoffs in college football. But what about the other pressing question on the mind of season ticket holders and athletic programs alike this year: how will the new tax laws affect season ticket purchases and donations to college athletics?
The Tax Cuts and Job Act was approved in 2017 to go into effect for the 2018 tax year and included many changes that affect both individuals and corporations. While many of these changes could affect a fan’s decision to purchase season tickets, the most obvious is the repeal of the previously permitted deduction for seat donations. Most athletic programs require a donation in order to receive the right to purchase season tickets, so under the new law these fans would not be incentivized by the tax law to remain a season ticket holder and may choose instead to purchase individual games or stop coming at all. The purpose of this thesis is to examine how the Tax Cuts and Job Act affects donations to intercollegiate athletics.
