On master's swimming and rugby

When in the Windy City, I look forward to training with the University of Illinois-Chicago 'masters' swim team.

The vibrant program is led by energetic Paul Moniak, whose day job is coaching the school's varsity. I'd guess there are 75 or more on the masters roster, some of whom are national class in their respective age groups (e.g., 30-34, 35-39, etc).

What I most appreciate about UIC is that master's team fees are set up to be tax-deductible contributions to the school team. That means money I would spend anyway goes to the varsity budget, while I gain access to a Division 1 coach. (Paul was the Horizon League's coach of the year in 2006-07.)

And now to the topic at hand: Are the ways to restructure our club sides so they benefit college and high school teams?

This spring, new Washington new head coach Gary Callender is to be available for paid sessions with local scholastic and university sides, because the club reasons it's better for the former Scottish international to make ends meet through coaching than odd jobs. The approach is common enough in Europe, and has been employed in the States from time to time.

Can we develop more sophisticated models, whereby youngsters gain organizational and financial benefits, not just technical services? Why? Because just as there is no likelihood of my going to the US Olympic trials meet, most 'senior' players and clubs won't be directly involved with our national team, save of course for dues that go to USA Rugby.

So while we masters athletes are competing, can we do it a way that more directly benefits the local youngsters who still might become Eagles?

Comments

[Cheyanquí]

"master's team fees are set up to be tax-deductible contributions to the school team."

There is a common urban legend of players on clubs with 501(c)(3) status paying their dues, and then filing for a tax deduction for the dues paid.

If anyone in the rugby community thinks of doing "tax-deductible dues" with their club, I would strongly suggest checking with a tax professional first.

If a donation / payment is made to an organization and the donor gets something in return, the payment is not a donation, but rather a "quid pro quo" [Agent Starling] transaction.

So I would ask myself, does paying dues to a university swim team who then gives pool time to an affiliated club sound like a tax avoidance scheme? Is there a quid pro quo of pool time for $$$.

Does a university have deeper pockets for tax advice than a rugby club does? Probably

[Silly]

If the financial future of rugby is dependent on this kind of thinking, we all should take up lacrosse.

[Cheyanquí]

IRS Pub 529, under "Club Dues"
http://www.irs.gov/publications/p529/ar02.html#d0e2566

"Club Dues. Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs."

[Cheyanquí]

Silly,
It's one thing to be a "visionary" in rugby...

It's another to be a "visionary" with regards to tax code, especially if one is making decisions and represenations on behalf of a rugby club (and not just for their own tax returns).

[Silly]

My comment wasn't directed to Cheyanqui, it was directed to Kirk's column.

[Cheyanquí]

Touché. My apologies.

I guess my comments still apply to anyone thinking about getting creative on the tax side.

[Cheyanquí]

This talk about taxes brings up a concern about Reimbursement vs taxable compensation.

Reimbursement for expenses may be tax free. Reimbursement for "time" is NOT -- it's usually taxable.

So a seasonal stipend to a coach, or a per match fee paid to a referee is taxable.

However, getting a coach to file expenses (mileage to/from trainings, hotels, meals) may be a way to reimburse without getting the Gub-Ment's hands into the limited rugby $$ out there.

On the referees side, I know several referee societies have looked long and hard at this.

As more and more college programs are recognized by their universities, these schools must cut checks with SSNs / TINs associated to a society or a real live person.

Since they are payments for time, someone (society or referee) must file these as income on a tax return.

If these payments ever get audited (most the University gets audited), and the payment hit a dead end at a referee....

The referee may have some "e'splaining to do"

[Jeff Arker]

"On the referees side, I know several referee societies have looked long and hard at this."

I'm not sure that there's anything to look at. Referees need to complete W9's and be issued a 1099 Misc if they earn over $599 in any given tax year.

Don't mess with the IRS. A lesson learned by Al Capone.

Jeff.

[Al Capone]

The IRS didn't get me, syphilis did