NCAA approves crowdfunding for student-athletes, when adhering to guidelines

Much confusion still swirls around eligibility and athletes when it comes to The National Collegiate Athletic Association's stance on crowdfunding — even after the NCAA clarified its rules in 2015, giving the method of personal fundraising explicit approval under student-athlete eligibility guidelines.

The NCAA’s clarification came nearly a year after it published an educational column that attempted to reign in a specific type of athlete crowdfunding called “pay-for-play” or “pay-to-stay.” The broad-stroke of the column, however, resulted in confusion among the collegiate community, causing many to steer clear of online personal fundraising.

The NCAA's educational column, helps Division 1 members understand how current regulations apply to crowdfunding. For example, the NCAA does not view crowdfunding any differently than any other form of fundraising. In regard to eligibility and amateur status, this usually requires that funds raised do not exceed “actual and necessary expenses” and relate to competition or training for competition.

As the cost of participating in high-level athletics continues to increase at a level greater than colleges’ and universities’ ability to support sports, online fundraising is becoming the new normal.

Summary of key aspects of the NCAA published position on Crowdfunding

As it relates to prospective student athletes and current student athletes:

• An athlete may set up their own crowdfunding campaign as long as the funds raised are used for “actual and necessary” expenses related to competition and practice (for team athletes) or an event and practice immediately preceding the event (for individual athletes).

• An athlete may not receive funds (via crowdfunding or otherwise) from an agent or a representative of an institution’s athletics interests (e.g. a “booster club”) or an institutional staff member.

• An athlete may participate in non-sports related crowdfunding provided that there is “no relationship to nor mention of athletics”.  For example, a soccer player could conduct a crowdfunding campaign to raise money to make a documentary film about pollution as long as she did not mention her status as an athlete.

• An institution or booster club may not accept crowdfunding donations on behalf of an athlete.

• Except for a few very specific exceptions, a student-athlete is not permitted to use his or her name or picture to advertise or promote a for-profit crowdfunding service.  That is to say, a student athlete can’t act as a spokesperson for a company (crowdfunding or otherwise).

• A crowdfunding entity can’t independently solicit funds and promise them to the student-athlete upon graduation or exhaustion of athletics eligibility.  “Once the student-athlete accepts the promise of pay, the student-athlete has jeopardized his or her eligibility for intercollegiate athletics, even if the funds will not be disbursed until after completion of his or her intercollegiate athletics participation.”

• A college or university may use crowdfunding in conjunction with its institutional fundraising efforts if the rules of the institutional, charitable, education or nonprofit promotions regulations are satisfied. However, an institution's crowdfunding campaign may not include a co-sponsorship with a for-profit organization and use a current student athlete's name, image or likeness.

• Some areas of fundraising under some circumstances may fall into gray areas for a particular college or university. As such, athletes are ultimately responsible for ensuring their own compliance with NCAA rules. RallyMe encourages prospective student athletes and student athletes to consult with their college or university as well as visiting the NCAA’s Eligibility Center website at www.eligibilitycenter.org for additional information.