A new program which allows people who give large donations to the University of Connecticut to receive a credit on their taxes was announced on Wednesday, Sept. 10, but only if their contribution goes towards athletics. The deal credits 50% of qualifying contributions, for up to $500,000 per taxpayer per year.
“The landscape of collegiate sports is rapidly evolving and getting increasingly competitive,” the tax credit program webpage states. “UConn needs support from its loyal donors and fans to continue competing at the highest level and winning conference, regional and national championships and Bowl games.”
A tax credit allows people to reduce the amount of taxes they owe. The UConn tax credit program can be applied against multiple Connecticut state taxes including individual income tax, business tax and other qualifying taxes, according to the UConn Tax and Compliance office. The program is not eligible for federal tax.
The program is only valid until $5 million is raised for UConn Athletics, on a first-come, first-served basis to qualifying donors.
The target of the program is those who give donations with a minimum threshold of $5,000. Besides individual donors, licensees of student-athletes’ name, image and likeness — more commonly known as NIL — can also receive the credit for endorsements in excess of $5,000. UConn’s corporate partners can take advantage of the program for deals of at least $25,000.
“The program is designed to complement existing giving opportunities while providing new avenues for corporate partnerships and individual support that directly benefit UConn’s student-athletes and athletic programs,” the announcement said.
Individual donors would have to send their contribution to a new “Storrs Strong Fund” in order to receive the benefit. The contribution can be sent online through the UConn Marketplace online portal or pledged through Nov. 14. Once it is received, a written acknowledgement and voucher will be issued to the taxpayer to be filed with their tax documents, the program policy states.
If what a taxpayer owes exceeds their contribution to the UConn fund, it can also be “carried forward” for up to 15 years, but can’t be applied backwards. The donations as part of this program also won’t get contributors any special benefits, like the points for priority seating attached to other fundraising efforts.
The effort to raise money through the tax credit follows the newfound ability for universities to enter into NIL contracts with student athletes in March. The laws surrounding “revenue-sharing” allows schools to pay up to $20.5 million annually to student athletes, collectively, as just one of many “robust avenues of opportunity” available to them. NIL money is also expected to be a driving force in athletic recruitment.
While it’s unlikely that students will be a major beneficiary of the program, UConn Athletics sees some of the highest donations to the university — including the largest-yet cash contribution in UConn history from Dr. Trisha Bailey. Utilizing that gift funding is the Bailey Student-Athlete Success Center, attached to Greer Field House, that is currently under construction.
UConn said they hope to raise as much as $10 million from contributions attached to the new tax credit, according to the Hartford Courant.
“This innovative program creates a win-win opportunity for our supporters and our athletic programs,” said Director of Athletics David Benedict in a press statement. “As the landscape of collegiate sports continues to evolve and become increasingly competitive, this tax credit program provides our loyal fans, corporate partners and interested businesses with a meaningful way to help UConn continue competing at the highest level while receiving significant financial benefits.”
The potential or actual financial benefit of the UConn state tax credit will vary based on each taxpayer’s facts and circumstances. The UConn Tax and Compliance office recommends that donors consult with tax professionals to determine the benefit of this or other such programs.
People looking to support UConn and its athletic programs can also do so through the purchasing of merchandise and tickets to games. They can also participate in donation opportunities to a wide range of UConn programs, educational initiatives and scholarship funds.
Those looking for more information about the UConn state tax credit program can contact statetaxcredit@uconn.edu.