This post may open the Kimono a bit on what I have going on in the NIL world, but the opportunity to read y'all's thoughts on what I am about to say is more valuable than possibly revealing what I am involved in, or getting asked a bunch of questions who's answers would reveal it...
I've noticed that Lifetime Cardinal is an LLC, not a 501(c)3. This means no donations made to it are tax deductible. The benefit of this approach is that - as its website makes clear - 100% of donations made to it are going to athletes, and there is no obligation for athletes engaged with it to take on obligations promoting charitable causes that might take away from training/practicing and school work. The downside is this means there aren't going to be too many sponsors wanting to get involved, because their contribution is not tax-deductible, and the idea of paying Stanford athletes has marginal marketing value to businesses. There might be a few corporate sponsors to sign up, but it won't be many, and that loses opportunity to build a broad base of business community support. Unless exceptionally well-heeled, all donors get tired of donating. Collectives around the country are starting to realize this.
It is becoming more clear to me that "the unwashed masses" of universities not as blessed with as many high net worth donors as Stanford, need a business-based, sustainable model to generate revenue, and 501(c)3 collectives are going to have an easier time appealing to corporate sponsors to sign on. I personally believe that if Lifetime Cardinal were partnered with a non-profit, it could develop a sponsorship program that would have greater appeal to the regional (Mostly Peninsula and South Bay, but maybe San Francisco) business community. And if Stanford did get more broader business community support within a partnership between Lifetime Cardinal and the local business community, it could drive significantly more local interest in Stanford sports.
With all that as context, I get this feeling that Lifetime Cardinal making clear it is partnered with a non-profit, would in the minds of Stanford people, cheapen it, and compromise the elite, we don't need anyone else, brand on which Stanford identifies itself. Am I right to feel this way? Would you think if LifeTime Cardinal promoted an alliance with, I don't know, say United Way, it would be cheapening itself? Do you think other Stanford people would feel that way?
I've noticed that Lifetime Cardinal is an LLC, not a 501(c)3. This means no donations made to it are tax deductible. The benefit of this approach is that - as its website makes clear - 100% of donations made to it are going to athletes, and there is no obligation for athletes engaged with it to take on obligations promoting charitable causes that might take away from training/practicing and school work. The downside is this means there aren't going to be too many sponsors wanting to get involved, because their contribution is not tax-deductible, and the idea of paying Stanford athletes has marginal marketing value to businesses. There might be a few corporate sponsors to sign up, but it won't be many, and that loses opportunity to build a broad base of business community support. Unless exceptionally well-heeled, all donors get tired of donating. Collectives around the country are starting to realize this.
It is becoming more clear to me that "the unwashed masses" of universities not as blessed with as many high net worth donors as Stanford, need a business-based, sustainable model to generate revenue, and 501(c)3 collectives are going to have an easier time appealing to corporate sponsors to sign on. I personally believe that if Lifetime Cardinal were partnered with a non-profit, it could develop a sponsorship program that would have greater appeal to the regional (Mostly Peninsula and South Bay, but maybe San Francisco) business community. And if Stanford did get more broader business community support within a partnership between Lifetime Cardinal and the local business community, it could drive significantly more local interest in Stanford sports.
With all that as context, I get this feeling that Lifetime Cardinal making clear it is partnered with a non-profit, would in the minds of Stanford people, cheapen it, and compromise the elite, we don't need anyone else, brand on which Stanford identifies itself. Am I right to feel this way? Would you think if LifeTime Cardinal promoted an alliance with, I don't know, say United Way, it would be cheapening itself? Do you think other Stanford people would feel that way?
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