Two Unique Nonprofit Corporations Built to Adapt
June 12, 2023
When forming House of Victory’s corporate structure, our founders anticipated a continued evolution of the rules and regulations surrounding Name, Image, and Likeness activities. It was essential to build an organization that met the needs of our student-athletes, coaches, university administration, donors, alumni, and corporate partners while having the ability to adjust to new legal and NCAA guidelines upon release.
Earlier this month, news broke of the IRS releasing a memo with clarity on whether collectives developing NIL opportunities for student-athletes furthers an exempt purpose under section 501(c)(3).
To date, all House of Victory’s NIL and business activity – student-athlete agreements, corporate partnerships, fundraising events, contributions received, etc. – has fallen under our nonprofit mutual benefit corporation, an important distinction from the public benefit 501(c)(3) corporations referred to in the IRS memo.
Nonprofit mutual benefit corporations, such as House of Victory, are typically utilized for a group of people working towards a common goal where the focus is on providing a benefit to members and the cause rather than earning a profit. As an alumni-backed collective dedicated to providing a competitive edge in the NIL space for USC student-athletes, the nonprofit designation is a vital distinction for our group to build trust, legitimacy, and confidence with our paying members, donors, and corporate partners.
Whereas many collectives are structured as for-profit LLCs, House of Victory’s chief incentive is to provide a platform of transparency that ensures supporters their funds are deployed properly. The results speak for themselves – a strong NIL program that allows our athletic programs to attract and retain elite student-athletes and coaches.
As a supplement to House of Victory’s nonprofit mutual benefit corporation, we have established House of Victory Foundation as a nonprofit public benefit corporation. The Foundation’s mission is to promote and foster charitable and educational community activities utilizing the active participation of student-athletes, and to provide a forum for future generations to grow and develop in their areas of passion while emphasizing the importance of charitable and community involvement.
To ensure compliance for contributions, House of Victory Foundation has partnered with Community Initiatives, a public charity, in a fiscal sponsorship relationship. Community Initiatives accepts and disburses charitable funds to support the mission of House of Victory Foundation within the range of permissible activities consistent with IRC Section 501(c)(3).
Registered as a tax-exempt 501(c)(3) nonprofit organization, Community Initiatives’ portfolio of projects range in size and serve a variety of causes, including social justice, the environment, animal rights, education, youth development, capacity building, health & wellness, philanthropy, the arts, and human services. Established in 1996, CI works with hundreds of Foundations, dozens of Government Entities, Social Entrepreneurs, and Nonprofit Activists. They sponsor projects, such as House of Victory Foundation, for the benefit of communities in service to social change.
House of Victory Foundation’s mission, along with our relationship with Community Initiatives, is to operate exclusively for exempt purposes set forth in section 501(c)(3) by serving public interest and passing both qualitative and quantitative tests. House of Victory Foundation intends to partner with community-based charitable organizations that target underserved youth. Additionally, student-athletes will develop interpersonal and public speaking skills, learn to use their talents and platform to benefit the community, and develop a life-long passion for charitable and community involvement. The Foundation will initially focus its efforts on underserved communities in Southern California, such as the communities around USC, to develop deep relationships and to build a sense of community.
Establishing two unique corporations allows House of Victory to functionally support all relative parties and interests. Through our mutual benefit, House of Victory provides a benefit to paying members and builds a competitive edge in the NIL space for USC student-athletes. Through our public benefit and partnership with Community Initiatives, House of Victory Foundation establishes ongoing charitable activities, values the philanthropic efforts of student-athletes, and supports a lifelong commitment to community.
With sustainability and adaptability at our forefront, House of Victory and House of Victory Foundation shall embrace continued change and clarity on best practices to operate compliantly. From the launch, our goal was to build a championship-level NIL program to match the championship-level standards set forth by USC and its student-athletes. We look forward to continue building on the initial success of our collective. Fight On!
To support the NIL program and USC student-athletes, become a member at www.houseofvictory.com or contact us at email@example.com. Follow us on Instagram @houseofvictorynil and Twitter @houseof_victory.