NCAA Division III Bylaws 12/16 – Fundraising Advanced Team Presenter Jean Orr

Special Thanks To: Greg Capell Tracey Hathaway Kiki Jacobs

Agenda Fundraising Designation of fundraising money. Earned vs. unearned. Crowdfunding General information. Student-athlete (SA)/Prospective student-athlete (PSA) – Do’s and don’ts. Institution – Do’s and don’ts.

Designation of Fundraising Money Before initial full-time enrollment, an outside amateur team/organization may designate specific funds to an individual as long as… Designated funds do not exceed actual and necessary expenses; and Any funds that exceed an individual’s actual and necessary expenses must go to the general team/organizational fund. NCAA Division III Bylaw

Designation of Fundraising Money An institution may designate specific funds “earned” by a SA through institutional fundraising as long as… Designated funds do not exceed actual and necessary expenses; Any funds that exceed an individual’s actual and necessary expenses must go to the general team/institutional fund; All designated funds must be deposited with the institution to administer; and Any unearned funds must be deposited into the general team/institutional fund. Bylaw

Earned versus Unearned Funds EARNEDUNEARNED Any funds not considered unearned. Fundraising either: 1.Involves use of athletics ability; OR 2.Involves direct appeal. Bylaw

Earned versus Unearned Funds EARNED Examples UNEARNED Examples Working a concession stand. Selling cookie dough. Parking cars at an event. Athletics ability. Lift-a-thon. Shoot-a-thon. Direct appeal. Letter writing. request.

Crowdfunding What is crowdfunding? Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet.

Crowdfunding What about crowdfunding? Earned or unearned? Why? Discuss with your neighbor for one minute.

Crowdfunding Crowdfunding is considered a direct appeal. All funds are unearned. Remember: The medium does not matter - same legislation applies.

Crowdfunding How many crowdfunding platforms exist worldwide? A.More than 12. B.More than 125. C.More than 1,250. D.More than 12,500.

Crowdfunding More than 1,250 online crowdfunding platforms exist worldwide and the number is G R O W I N G !

Crowdfunding Crowdfunding and Amateurism – General Division III legislation does not allow a SA’s/PSA’s name or picture to be used to promote or solicit funds for a commercial product or service. This includes: Brick-and-mortar business; Commercial websites; For-profit crowdfunding sites ; and Other online businesses. Bylaw NCAA Division III Educational Column 11/06/2014

Crowdfunding SA/PSA – Do’s and Don’ts SA/PSA may not use his or her name, picture or athletics reputation to solicit funds through a personal online profile or crowdfunding site if the funds go directly to the SA/PSA. Bylaws and Educational Column 11/06/2014

Crowdfunding SA/PSA – Do’s and Don’ts SA/PSA may not set up a crowdfunding site to solicit funds for competition and practice with an outside amateur team or organization if the funds go directly to the SA/PSA. Bylaws – (k) and Educational Column 11/06/2014

Crowdfunding SA/PSA– Do’s and Don’ts However… SA/PSA may set up a crowdfunding site to solicit funds for an outside amateur team or organization, as long as No funds are earmarked for the SA; and No funds exceeding actual and necessary expenses are earmarked for the PSA. Bylaws ; and Educational Column 11/06/2014

Crowdfunding SA/PSA – Do’s and Don’ts SA/PSA may not set up a crowdfunding site and use his/her athletics reputation or skill for funds to buy items. (E.g., Laptop, car, food, school supplies, athletics equipment) Bylaws and Educational Column 11/06/2014

Crowdfunding SA/PSA – Do’s and Don’ts However… SA/PSA may set up a crowdfunding site for funds to buy items, as long as there is no relationship to nor mention of athletics. Note: Athletics staff and boosters may not donate to a SA’s or PSA’s crowdfunding site (even if there is no mention of athletics) if the funds go directly to the SA/PSA. Bylaws and Educational Column 11/06/2014

Crowdfunding Institution – Do’s and Don’ts An institution may use crowdfunding for an institutional fundraiser, as long as… Funds are not earmarked for a SA; and Conditions of Bylaw are satisfied (if using SA’s name, picture, or appearance). Note: Anyone who donates to an institutional fundraiser becomes an athletics booster of the institution. Bylaws ; ; and Educational Column 11/06/2014

Crowdfunding Institution – Do’s and Don’ts An institution may use crowdfunding to fundraise for a SA (or relative) under the following extreme circumstances: Circumstances should be extraordinary and beyond SA’s control (e.g., life-threatening illness or natural disaster); Proceeds must be designated for a specific purpose (e.g., payment of medical bills); Proceeds may be given directly to the beneficiaries – keep receipt on file; and Excess proceeds must be given to a non-profit – keep receipt on file. Bylaw

Crowdfunding Eligibility Once a SA becomes aware that his/her name, picture or likeness appears impermissibly on a crowdfunding site, the SA (or the institution) must take steps to stop the activity (e.g., send cease and desist letter). Otherwise, the SA loses eligibility. Bylaw Educational Column 11/06/2014

Stretch Your Mind

RSRO Question No. 1 The women’s tennis team would like to post team fundraising messages on their personal Twitter accounts, including a link to the athletics department’s donation page. Is it permissible for SAs to post institutional fundraising messages to their Twitter accounts?

RSRO Answer No. 1 It is permissible for the women’s tennis SAs to post fundraising messages and post their athletics department’s donation page on their personal Twitter accounts. However, those funds must be deposited into the general team or institutional fund and may not be designated for a SA. Additionally, promotional activities legislation must be met. Bylaws and Educational Column 11/06/2014

Stretch Your Mind

RSRO Question No. 2 A women’s basketball SA has been invited by USA Athletes International to participate in a trip to Spain next summer. The SA has worked with her compliance office to permissibly set up a crowdfunding site. In assisting the SA, the compliance office became aware that the SA’s college coach wants to send the link to the SA’s crowdfunding site to all of his contacts. Is it permissible for the coach to solicit donations by forwarding the SA’s crowdfunding site link?

RSRO Answer No. 2 It is not permissible for the SA’s college coach to solicit donations on her behalf. Doing so would constitute an extra benefit. Although the funds would not be earmarked for the SA, the coach would be assisting the SA and expanding her crowdfunding network. Bylaw Educational Column 11/06/2014

Stretch Your Mind

RSRO Question No. 3 US Indoor Lacrosse selected a men’s lacrosse SA to participate in the Junior World Games as a member of the US U-19 Team. The SA was encouraged to fundraise $3000 to cover actual and necessary expenses for the competition. Is it permissible for the SA to set up a crowdfunding site?

RSRO Answer No. 3 It is permissible for the SA to raise funds through a crowdfunding site, as long as… It is in accordance with promotional activity legislation; and Funds go directly to US Indoor Lacrosse (no funds may be earmarked for the SA). Bylaws and Educational Column 11/06/2014

Stretch Your Mind

RSRO Question No. 4 An athletics booster would like to set up a Go Fund Me profile to raise money for the women’s rugby team. The profile would include photos of the women’s rugby SAs. The booster would also like the women’s rugby SAs to post the Go Fund Me link on their personal Twitter and YikYak accounts. Is this all permissible?

RSRO Answer No. 4 It is permissible for the booster to set up a Go Fund Me profile as long as the funds are donated to the institution in accordance with institutional policy. Funds may not be designated for a particular SA (extra benefit). Any involvement by the women’s rugby SAs (including photos on the booster’s profile) would be considered a promotional activity and must satisfy the promotional activities legislation. Bylaws and Educational Column 11/06/2014

Stretch Your Mind

RSRO Question No. 5 The softball team would like to set up a Go Fund Me profile to raise money for a teammate battling cancer. Is this permissible?

RSRO Answer No. 5 It is permissible for the softball team to set up a Go Fund Me profile on behalf of a teammate battling cancer, as long as … Funds are for a specific purpose (e.g., medical bills); Funds are donated to the institution to then give directly to the beneficiaries (with receipt on file); and Excess funds are donated to a non-profit (with receipt on file). Additionally, the SAs must satisfy promotional activity legislation. Bylaws and

Stretch Your Mind

RSRO Question No. 6 Women’s tennis SA impermissibly created a Go Fund Me profile by identifying herself as a Division III tennis SA with the intent to receive funds directly. The SA’s friends donated $200. Once the SA became aware her profile was impermissible, she canceled the donations. Does the SA need to seek reinstatement?

RSRO Answer No. 6 Since the institution and the SA closed the Go Fund Me profile prior to the SA collecting any funds, no violation is considered to have occurred. Therefore, SA reinstatement is not necessary. However, if the SA had collected any of the donated funds, the SA would have to seek reinstatement for preferential benefits (potentially extra benefits if institutional employees or athletics boosters donated). Bylaws and Educational Column 11/06/2014

Questions?

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