NCAA Bylaws 12 and 16 Objectives Provide participants

NCAA Bylaws 12 and 16

Objectives • Provide participants with the tools to have a better understanding of the amateurism and benefits legislation. • Enhance the participants ability to apply the legislation to situations they may encounter on campus by working through case studies.

Overview • Crowdfunding. • All-Star Contests. • Entertainment.

Crowdfunding

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.

Crowdfunding • Since Crowdfunding is considered a direct appeal, all funds are unearned. • Unearned = any fundraising activity that involves use of athletics ability or involves direct appeal. NCAA Bylaw 12. 1. 1. 1. 2

Crowdfunding (cont. ) • In all instances athletics staff and boosters MAY NOT donate to a SA or PSA’s crowdfunding site (even if there is no mention of athletics) if the funds go directly to the SA or PSA. Bylaw 12. 1. 3. 2

Crowdfunding (cont. ) • Effects on a SA’s Eligibility: • Once a SA becomes aware that his or 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. • If the SA 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 12. 5. 1. 1. 5 Educational Column 11/06/2014

Crowdfunding by SAs and PSAs

Crowdfunding by SAs and PSAs 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 12. 5. 1. 4. 2 NCAA Division III Educational Column 11/06/2014

Crowdfunding by SAs and PSAs (cont. ) SA or 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 or PSA. Bylaws 12. 1. 1 and 12. 5. 1 Educational Column 11/06/2014

Crowdfunding by SAs and PSAs (cont. ) SA or 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 or PSA. Bylaws 12. 1. 5. 2 – (k) and 12. 5. 1 Educational Column 11/06/2014

Crowdfunding by SAs and PSAs (cont. ) SA or 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 that exceed actual and necessary expenses are earmarked for a particular SA or PSA. Bylaws 12. 1. 1 ; 12. 1. 1 and 12. 5. 1 Educational Column 11/06/2014

Crowdfunding by SAs and PSAs (cont. ) A SA or PSA MAY NOT set up a crowdfunding site and use his or her athletics reputation or skill for funds to buy items (e. g. , laptop, car, food, school supplies, athletics equipment). Bylaws 12. 1. 1 and 12. 5. 1 Educational Column 11/06/2014

Crowdfunding by SAs and PSAs However… A SA or PSA MAY set up a crowdfunding site for funds to buy items or engage in activities (i. e. , mission trips), as long as there is no relationship to nor mention of athletics. Remember: 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 or PSA. Bylaws 13. 2. 2 and 16. 02. 3 Educational Column 11/06/2014

PSA or SA Use of Crowdfunding Use of name or picture to promote or solicit funds for a commercial product. Use of name, picture or athletics reputation to solicit funds if the funds go directly to the SA or PSA Fundraising for participation with an outside amateur team if the funds go directly to the SA or PSA. Fundraising for an outside amateur team if funds go to the general fund. Use of name, picture or athletics reputation to solicit funds to buy items (e. g. , laptop, car). Fundraising to engage in activities (i. e. , mission trips), as long as there is no relationship to nor mention of athletics.

Institutional Use of Crowdfunding

Institutional Use of Crowdfunding An institution may use crowdfunding for an institutional fundraiser, as long as: • Funds are not earmarked for a SA; and • Conditions of Bylaw 12. 5. 1. 1 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 12. 1. 1. 1. 2. 1; 12. 5. 1. 1; and 13. 02. 9 Educational Column 11/06/2014 and 16. 02. 3 Educational Column 11/06/2014

Institutional Use of Crowdfunding (cont. ) An institution may fundraise for a SA (or relative): • 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 nonprofit – keep receipt on file. Bylaw 16. 11. 1. 13

Institutional Use of Crowdfunding Funds Raised for Entire Team/Program. Funds Earmarked for a Particular SA for Athletics Purposes. Funds Raised for a SA under Extenuating Circumstances.

Case Studies

Case Study No. 1 Potato Chip State University’s softball team is traveling to Florida for spring break. They need to raise $5, 000 for the trip. They have set up a crowdfunding site and have asked the SAs to send the link in an email to family, friends and former SAs. Is this permissible? What more do you need to know?

Case Study No. 1 (cont. ) Potato Chip State University’s Analysis: Are the SAs’ names, pictures or likenesses being used on the crowdfunding site? Are the funds earmarked for a particular SA?

Case Study No. 1 (cont. ) Potato Chip State University’s Response: This is permissible provided … If the SAs’ names, pictures or likenesses are used, Bylaw 12. 5. 1. 1 must be followed. The funds may not be earmarked for a particular SA but rather must go into the team’s fund.

Case Study No. 2 Pretzel College is going on a foreign tour summer 2017. Each SA is required to contribute $500 towards the trip. Tammy Twist’s mother set up a crowdfunding page to raise the $500 towards the trip. What more do you need to know?

Case Study No. 2 (cont. ) Pretzel College’s Analysis: What language was used on the crowdfunding site? Was the SA mentioned? Was the institution mentioned? Was the fact that she is a SA and this is for an athletics trip mentioned?

Case Study No. 2 (cont. ) Pretzel College’s Response: If the language on the crowdfunding site mentions that Tammy is a SA and/or that the funds are for an athletics trip, the crowdfunding site is not permissible.

Case Study No. 3 Through his local sports club, Peter Popcorn has been invited to travel to Paris this summer and compete in an elite event. He wants to set up a crowdfunding site to raise money for the trip. What more do you need to know?

Case Study No. 3 (cont. ) Peter Popcorn’s Analysis: Are the funds donated to the clubs’ crowdfunding site or are they earmarked for Peter?

Case Study No. 3 (cont. ) Peter Popcorn’s Response: If the funds go directly to Peter, this is impermissible since it is for an athletically related activity. Provided the funds go into the general club account and no amount is earmarked for a particular team member, it is permissible for Peter to solicit donations to the site.

Case Study No. 4 Candy Cookie, a soccer SA is interested in participating in a community service trip over spring break sponsored by student activities. Each student must pay $300 to go on the trip. Candy has set up a crowdfunding account to raise the $300. What more do you need to know?

Case Study No. 4 (cont. ) Candy Cookie’s Analysis: Are the funds going directly to Candy? Is the trip open to all students or just SAs? Will Candy Cookie be participating in athletics activities while on the trip? Who is Candy soliciting for donations?

Case Study No. 4 (cont. ) Candy Cookie’s Response: Provided the trip is open to all students (not just SAs) and there are no athletically related activities, Candy can use a crowdfunding site to raise the money even if the funds go directly to her. However, athletics staff and boosters may not donate to the crowdfunding site since the funds are going directly to Candy.

Best Practices when Monitoring Crowdfunding What policies does your institution currently have in place pertaining to crowdfunding?

Funding SA Participation in All. Star Contests

Funding SA Participation in All-Star Contests Since a student-athlete who competes as a member of a squad in any college all-star contest shall be denied further intercollegiate eligibility in that sport, only student-athletes who have exhausted eligibility in the sport are permitted to participate in an all-star contest. Bylaw 14. 7. 4

Funding SA Participation in All-Star Contests It is not permissible for an institution to fund a SA’s trip to an all-star contest. A SA may receive actual and necessary travel, room, board, apparel and equipment expenses from an outside amateur sports team or organization. Bylaw 16. 1. 7. 1 Bylaw 12. 1. 5. 1 -(a)

Funding SA Participation in All-Star Contests It is permissible for your institution to provide an award (but not cash) that does not exceed $400 in value for participation in an all-star contest. Bylaw 16. 1. 7. 1 Figure 16 -1

Funding SA Participation in All-Star Contests It is permissible for the award to be an expense associated with the all-star contest (e. g. , hotel room, airline ticket, etc. , but not cash) provided the award satisfies the requirements in Bylaw 16. 1. The value of an award may not exceed specified value limits and a SA may not contribute to its purchase in order to meet those limits. Bylaw 16. 1. 5. 4 Figure 16 -1

Funding SA Participation in All-Star Contests Example No. 1: The all-star contest event organizer will provide airfare, hotel accommodations, meals and uniforms to all participants and a guest/friend. Per Bylaw 12. 1. 5. 1 -(a), expenses for the SA are considered actual and necessary and are permissible. However, the expenses for the guest/friend are not permissible.

Funding SA Participation in All-Star Contests Example No. 2: The all-star contest event organizer will provide hotel accommodations, meals and uniforms to all participants but not transportation. An institution may provide an airline ticket as the all-star participation award but per the maximum value listed in Figure 16 -1, ($400). However, if the airfare exceeds $400, the institution could not provide the ticket and have the SA pay the additional cost.

Entertainment

Entertainment An institution, conference or the NCAA may provide reasonable entertainment (but may not provide cash for such entertainment) to SAs in conjunction with practice or competition. Bylaw 16. 7. 1

Entertainment (cont. ) Complimentary tickets to professional sports contests shall not be provided to SAs, unless the tickets are provided by the institution (or by a representative of athletics interests through the institution) for entertainment purposes to SAs involved in an away-from-home contest. Bylaw 16. 7. 1. 1

Entertainment (cont. ) • Any practice on an extended road trip: At the competition site; • On direct route between campus and the first competition site; or • On a direct route between competition sites. May not schedule practice sessions at other locations to provide entertainment. Bylaw 16. 7. 2

Case Study No. 1 A coach would like to take her team to a local pumpkin patch to get pumpkins and go on a hayride. They are outside of the playing and practice season. Is this permissible?

Case Study No. 1 Response Entertainment may only be provided in conjunction with practice or competition. Since the team is outside the playing season, institution may not provide expenses for the activity.

Case Study No. 2 A local Division I institution has offered a Division III institution’s basketball team complimentary admission to its home opener. The game occurs during the DIII team’s playing season. May the DIII team attend?

Case Study No. 2 Response Yes, the activity is permissible. A Division I institution may provide game tickets to a Division III institution, provided they are donated to the institution. The team entertainment legislation allows an institution to provide entertainment expenses for SAs in conjunction with practice and competition.

Case Study No. 3 A coach wishes to take her team on a dinner cruise outside the playing season under the Occasional Meal legislation (Bylaw 16. 11. 1. 5). Is this permissible?

Case Study No. 3 Response Since a dinner cruise would include entertainment in conjunction with the meal and this is planned to occur outside the playing season, this is not permissible.

Questions?

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