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Promotional Activities and Fundraising

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1 Promotional Activities and Fundraising
Bylaw 12 and 16 Promotional Activities and Fundraising Maureen Harty

2 Overview Provide participants with the tools to have a better understanding of the promotional activities and crowdfunding legislation. Enhance the participants ability to apply the legislation to situations they may encounter on campus by working through case studies.

3 Overview (Cont.) Promotional Activities. Case Studies.
Fundraising/Crowdfunding.

4 Promotional Activities
Let’s start with talking about Promotional Activities.

5 Promotional Activity What is a promotional activity?
Student-athletes conducting a fundraiser for their winter training trip. Student-Athlete Advisory Committee hosting a Special Olympics event. Student-athletes participating in a direct appeal (e.g., letter writing). An institution using a crowdfunding site to raise funds for student-athletes to participate on a foreign tour. An institution using a student-athlete's photo in social media and/or on the institution's website. An institution conducting a fundraising night at a local restaurant with student-athletes promoting the event. What is a promotional activity? While this is not a exhaustive list you can see that a promotional activity can come in many shapes and sizes.

6 Promotional Activities (Cont.)
Promotional Activity? Yes – NCAA Bylaw No Student-Athlete Involved? Remember that the legislation bylaw only comes in to play if SA are involved either in person (such as a community service activity) or by use of their name or image (such as on a poster). If the activity is limited to coaches, athletic department or institutional staff, bylaw does not apply. Remember Bobby Knight and his autoparts logo on his red sweater??? This was permissible because it worn by a coach and not a SA.

7 Promotional Activities (Cont.)
Who is Involved? Yes – Bylaw Where will the promotional activity take place? What type of promotional activity? Why is it taking place? It is imperative that you gather all the information about the activity including who, what, why and where.

8 Promotional Activities (Contd.)
Question Yes No Will the student-athlete miss class? Will the student-athlete accept more than actual and necessary expenses? Did the student-athlete sign a release statement? Were educational materials provided? Did the student-athlete receive written approval? These next several charts break down Bylaw by topic area. When reviewing the questions, if your response corresponds with the green “thumbs up”, you have met the legislation. If not, time to put on the breaks and rethink this activity. Remember you need to examine all of the components of the bylaw. For the educational materials, they legislation as of August 1, 2018 states that the institution must provide education to the charities and non-profits on how the SAs name, picture and likeness can be used. Bylaw – (a), (d), (f), (i), (j)

9 Promotional Activities (Contd.)
Question Yes No Does the language/action encourage the use of product/service? Is the name or picture of student-athlete showing a reproduction of the product? Does the product/logo exceed 25%? Is the commercial entity affiliation explained? (e.g., entity is the official sponsor of the event) More questions to be asked, again looking for that thumbs up. Name or picture of student-athlete – reproduction of product? Bylaw – (b), (c)

10 Promotional Activities (Contd.)
Question Yes No Trademark or logo? Feature alcoholic beverages, tobacco, performance-enhancing drugs, gambling? Student-athlete is used to promote the commercial venture of a nonprofit agency? Money goes directly to institution, conference, charitable, educational or nonprofit agency. Items sold with student-athlete’s name, likeness or pictures with institutional control? By whom? Informational? And a final set of questions, looking for a thumbs up! Bylaw – (b), (g), (e), (h)

11 Let’s look at this sample poster for the Cat Tail College Clippers.
Is this a promotional activity? You know your stuff, so of course it is, it involves a student-athlete(s). Are there any issues? While you could go down the list in , you could immediately jump to (b) (2). While I don’t have a ruler on me, my eyes tell me that the Nike logo is more than 25% of the total promotional item. Are there are other issues as well?….You will need to determine if the proper permission was obtained. What about (b)(1)? Is it noted how Nike is affiliated with the institution? What about (c)? Is there a Nike logo on their uniforms and the Nike logo on the poster? There are logos on their uniforms but those are OK since they are a manufacturers logo that is permissible.

12 You know that the last version was never going to be permissible so you go back to your staff and let them know that they must redo the poster. How does this version look? We will assume all the proper permissions have been obtained, now Nike logo is no longer over 25%, we have identified the Nike’s affiliation with the institution. Are we good to go???? YES!

13 Promotions – Commercial Locations/Sponsors
1. Does it advertise the presence of student-athlete at commercial location? 2. Is it involved directly or indirectly promoting the activity? Is the commercial establishment a co-sponsor? No Yes Let’s switch gears for a minute to Promotional Activities that will occur at a commercial establishment. The first question to ask: Is the commercial establishment simply the host of the activity (such as a golf course being used for a golf outing) or are they a co-sponsor ( Bank One Flower University 5K Race). Then moving on to the second blue box answering those two questions will determine if SAs can be involved. Even if your answer is “No”, the insittiton could still host the event, but SAs are not permitted to be involved.

14 Promotions – Commercial Locations/Sponsors (Cont.)
May use the appearance, name or picture of an enrolled student-athlete to promote generally its fundraising activities at the location of a commercial establishment, provided: The commercial establishment is not a co-sponsor of the event; The student-athlete does not promote the sale of a commercial product in conjunction with the fundraising activity. Student-athletes are permitted to distribute information about institutional fundraising activities, even if those activities involve a commercial location or sponsor, as information distribution does not constitute promotion of a commercial product or service. Bylaw Having SAs at an event can help lure a larger crowd and they are then involved in the fundraising activities. However, you must be careful about how the SAs are used in the promotion of the event and at the actual event itself. First is the commercial entity a co-sponsor? If so SAs cannot be used to promote the event. For example “Come meet Flower U. SAs at the Sporting Goods Store and receive a 10% discount”. Are they a co-sponsor? Yes their name is being used to promote the event in a way that is not just informational. Are SAs being used to promote the event? Yes because their presence is being promoted.

15 Promotional Activities - Prize
Institutional or noninstitutional promotional activity. Student-athlete, prospective student-athlete (or a member of his or her family) may win a prize if: The prize is won through a random drawing in which all members of the general public or the student body are eligible to participate. Use of athletics ability does not affect the student-athlete’s eligibility. Bylaws , Hopefully your SAs are supporting one another and attending contests in sports other than their own. Many times you have promotions at these contest. The legislation allows for a SA to participate in these promotions provided he/she is chosen through a random drawing open to the public or student body. So if every student at the basketball game can sign up to shoot a half court shot for a prize, a soccer student-athlete is eligible to register and be chosen at random. If she wins, her eligibility would not be affected.

16 Let’s look at this promotional activity
Let’s look at this promotional activity. Any issues if a SA is chosen to take place in the contest???? No it is a random drawing so provided no preference was given to a SA, this is permissible.

17 Media Activities A student-athlete may participate in media activities and: Receive legitimate and normal expenses when the student-athlete's appearance or participation is related in any way to athletics ability or prestige. May engage in such activities at any time. May receive compensation at a rate commensurate with the going rate in that locale for similar services. Bylaw This is sometimes an overlooked bylaw. SAs may participate in Media Activities at any time during the year and may receive expenses and even compensation for these activities.

18 Modeling and Other Nonathletically Related Promotional Activities
It is permissible for an individual to accept remuneration for or permit the use of his or her name or picture to advertise or promote the sale or use of a commercial product or service if all of the following conditions apply: Became involved in such activities for reasons independent of athletics ability; No reference is made in these activities to the individual's involvement in intercollegiate athletics; and The individual’s remuneration under such circumstances is at a rate commensurate with the individual's skills and experience as a model or performer and is not based in any way upon the individual's athletics ability or reputation Bylaw There are some opportunities for SAs to be involved in modeling or promoting a product. If this situation arises on your campus, be sure to review bylaw to see if this can be used to get to a permissible spot.

19 Crowdfunding

20 What is Crowdfunding? The practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet. Since Crowdfunding is considered a direct appeal, all funds are unearned. The new buzz word these days is Crowdfunding. Crowdfunding is defined as any practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet. Now were are all familiar with sites such as go fund me. However, crowdfunding can be as basic as a letter writing campaign. It is any direct appeal that requests money from a large number of individuals. It is important to remember that crowdfunding is considered a direct appeal and therefore, any funds received through a crowdfunding venture are considered unearned. Bylaw

21 Crowdfunding In all instances athletics staff and boosters MAY NOT donate to a student-athlete or a prospective student-athlete’s crowdfunding site (even if there is no mention of athletics) if the funds go directly to the student-athlete or prospective student-athlete. Very important education point for your staff and boosters: An athletics staff member nor a booster may donate to a crowdfunding site, if the funds are going directly to the SA or PSA. An important distinction to make is that boosters and staff members may donate to the team’s general fundraising efforts, provided the funds will not be earmarked for a specific student-athlete or prospective student-athlete. Bylaw

22 Crowdfunding (Cont.) Effects on a Student-Athlete’s Eligibility:
SA is not involved: Once a student-athlete becomes aware that his or her name, picture or likeness appears impermissibly on a crowdfunding site, the student-athlete (or the institution) must take steps to stop the activity (e.g., send cease and desist letter), otherwise, the student-athlete loses eligibility. SA is involved: If the student-athlete was involved in setting up an impermissible crowdfunding site AND takes funds from the site, he or she must be declared ineligible and go through the NCAA student-athlete reinstatement process Bylaw Educational Column 11/06/2014 Now crowdfunding can potentially impact a student-athlete’s eligibility. If a SA is not involved in organizing the crowdfunding campaign but becomes aware that his or her name, image or likeness appears on a crowdfunding site impermissibly, they (or the institution) must take the proper steps to ensure they are removed from the account (a cease and desist letter). This does not guarantee the site will take it down but does allow the SA to maintain there eligibility. Now on the flip side of the above scenario, if a SA was involved in setting up an impermissible crowdfunding site AND takes the money from that site, the institution must be declared ineligible and have the SA go through reinstatement prior to participating in intercollegiate competition.

23 Crowdfunding by Student-Athletes

24 Crowdfunding by Student-Athletes
Division III legislation DOES NOT ALLOW a SA’s or 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 Educational Column 11/06/2014 Tying crowdfunding back to the promotional activities, in general a SAs photo could not be used to promote a crowdfunding site.

25 SA Use of Crowdfunding 1. Use of athletics reputation to promote or solicit funds for a commercial product. Bylaws Educational Column /06/2014 2. Use of name, picture or athletics reputation to solicit funds if the funds go directly to the SA or PSA. Bylaws and Educational Column 11/06/2014 3. Fundraising for participation with an outside amateur team if the funds go directly to the SA or PSA. Bylaws (k) and Educational Column /06/2014 4. Fundraising for an outside amateur team if funds go to the general fund. Bylaws ; and Educational Column /06/2014 5. Use of athletics reputation to solicit funds to buy items (e.g., laptop, car). Educational Column /06/2014 6. Fundraising to engage in activities (i.e., mission trips), as long as there is no relationship to nor mention of athletics. Bylaws and Educational Column /06/2014 This is an overview of when and how crowdfunding can and cannot be used by SAs (and PSAs the summer before enrollment if fundraising for their collegiate team). If the scenario in the first column results in an red “thumbs down”, then steer clear as this is not permissible. If the scenario in the first column results in a green “thumbs up”, you can give the OK. #1 allows for a SA to own a business provided they do not use their athletics reputation in any capacity to promote the business. #4 allows a SA (and PSA) to fund raise for their team. The funds must go into a team fund and cannot be earmarked for any particular SA. #5 and #6 again no use or mention of athletics reputation is permissible.

26 Institutional Use of Crowdfunding

27 Institutional Use of Crowdfunding
An institution may use crowdfunding for institutional fundraisers as long as: Funds are not earmarked for a student-athlete; and Conditions of Bylaw are satisfied (if using student-athlete’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 and Educational Column 11/06/2014 Now we tend to discuss crowdfunding in the light of SAs and PSAs. However, institutions can permissibly use crowdfunding sites to help support its ventures. Take note though, the funds cannot be earmarked and be caution of the use of the SAs name or picture in

28 Institutional Use of Crowdfunding (Cont.)
An institution may fundraise for a student-athlete (or relative): Circumstances should be extraordinary and beyond student-athlete’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 nonprofit – keep receipt on file. Bylaw Many times we hear about unforeseen circumstances that involve our SAs or one of their family members. The legislation in bylaw 16 allow for an institution to conduct a fundraiser, including a crowdfunding site, to assist in those times of need. The legislation lays out the conditions under which the institution can help. It is best to have the fundraiser go through the institution rather than an individual or other group.

29 Institutional Use of Crowdfunding
1. Funds raised for entire team or program. Bylaw 2. Funds raised for a particular SA for athletics purposes. Bylaws and Educational Column 11/06/2014 3. Funds raised for SA under extenuating circumstances. Bylaw ##1 and 2. With any fundraiser we are conducting, we are always asking two questions: 1. Will the fundraiser utilize the image of SAS? 2 And if yes, does it meet Bylaw ? Provided funds are not earmarked for a particular SA and the conditions of Bylaw are satisfied, it would be permissible for an institution to utilize a crowdfunding site. 3. Now Bylaw allows an institution to assist a SA in time of need. The bylaw allows for an institution to fundraise for a specific purpose (may be to fund medical bills) when an extraordinary situation occurs. As noted, we first have to have an event considered extraordinary and outside of the control of the SA; Next, we have to identify a purpose for the funds. It is permissible for you to give the funds directly to the SA or his or her family. However, you must keep a receipt on file to verify why the expenses were provided. Lastly all excess proceeds must be donated to a nonprofit.

30 Case Studies

31 Tulip U after a big win! Here is a poster Tulip U developed for their fundraiser. Any issues? Use of team photo OK? Yes, it is an institutional fundraiser. Is arrangement with Paul’s Pizza OK? Yes, a commercial entity can donate to the team. What about the last line, “Come meet the team”. This is not permissible since you are using the appearance of SAs to drive business to a commercial entity.

32 Now we know the coach has told his team to promote the heck out of this fundraiser so Cassie posts this tweet. Any issues??? No, this is informational and it is permissible for SAs to promote their fundraisers.

33 Cassie takes it one step further on her next tweet and adds that she and her teammates will be there? Cassie has now crossed the foul line!!! She is using her athletics reputation and name to drive business to a commercial entity. Even though the coach may have told the SAs to grab 10 of their friends and come to the fundraiser, it is not permissible to promote that SAs will be in attendance.

34 In the end Cassie strikes out on her promotion of the fundraiser.
What about this one???? Cassie didn’t use her name or the names of her teammates in the text BUT! She uses their photos and they are using the product (eating Paul’s Pizza). Mentioning that the Coach will be there is not an issue. Coaches are not bound by the limitations in In the end Cassie strikes out on her promotion of the fundraiser. Sandy Paula Cassie

35 Help Kevin Travel to Peru this Summer with his Club Soccer team.
Brooks, IN Sports #1. This photo is of Kevin from 8th grade. Is this page permissible? Here is an example of a crowding funding campaign using a Go Fund Me site. Kevin knows he can’t use his Marigold University photo to promote his fundraiser so her uses a picture of himself from 8th grade. Did he out smart the NCAA rules? Nope! In the text Kevin mentions his relationship to Marigold soccer---he is a member of the team and used his name and athletics reputation to raise funds. Kevin is a freshman soccer player at Marigold University. He has the opportunity to travel with his club team to Peru this summer Each club member must pay $5000. All monies raised will go directly to Kevin expenses.

36 Help Kevin Travel to Peru this Summer with his Club Soccer team.
#2. Kevin also plays football at Marigold University and decides to use a football picture but still is raising funds for his soccer trip. Brooks, IN Sports Kevin is persistent so he changes the photo to a football photo from high school. Now he’s OK, right? NOPE! Once again the text is not permissible. Kevin misses his goal again! Kevin is a freshman soccer player at Marigold University. He has the opportunity to travel with his club team to Peru this summer Each club member must pay $5000. All monies raised will go directly to Kevin’s expenses.

37 Help Kevin Travel to Peru this Summer
Brooks, IN Education #3. Kevin kept the picture but removed the language about being a student- athlete. Is this site permissible? Kevin wont give up. He takes any mention of the soccer portion of his trip out of the post. Now he’s on a break way, right? Well, maybe. While we would not say Kevin has a violation here by using his football photo, we would advise on the front end that he not use this photo. It’s still 0-0 for Kevin in the fundraising game. Kevin is a freshman at Marigold University. He has the opportunity to travel to Peru this summer. Each traveler must pay $5000. All monies raised will go directly to Kevin’s expenses.

38 Help Kevin Travel to Peru this Summer
#4. Kevin thinks he looks good in his senior photo so he changes the photo to his senior picture. Is this site permissible? Brooks, IN Education So Kevin goes into overtime and trades out the photo with his senior photo. HE’s OK with it since he knows he looks good in the picture and it should attract lots of donations? Is he OK? Yesssssss! Game over, Kevin wins with this fundraising page. Kevin is a freshman at Marigold University. He has the opportunity to travel to Peru this summer. Each traveler must pay $5000. All monies raised will go directly to Kevin’s expenses.

39 Questions?

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