The Junker story (details here) invites general commentary on the filthy Bowl Championship Series.
Until he was fired, Junker “was paid $592,000 to stage either two or three football games a year.” In 2008, Sugar Bowl CEO Paul Hoolahan earned $645,386 “for staging one football game.”
March 30th, 2011 at 1:48PM
UD includes a link to a SI.com report by Andy Staples. From that report:
“Oh, by the way, not one of the BCS bowls pays taxes. They are all run as 501(c)(3) charities.”
Institutions of higher education also operate as tax exempt organizations under Section 501(c)(3) of the Internal Revenue Code.
From pp.2-3 of the IRS Compliance Guide for 501(c)(3) Public Charities (Publication 4221 PC) at http://www.irs.gov/pub/irs-pdf/p4221pc.pdf:
“A public charity is prohibited from allowing more than an insubstantial accrual of private benefit to individuals or organizations. This restriction is to ensure that a tax-exempt organization serves a public interest, not a private one. If a private benefit is more than incidental, it could jeopardize the organization’s tax-exempt status.
“No part of an organization’s net earnings may inure to the benefit of an insider. An insider is a person who has a personal or private interest in the activities of the organization such as an officer, director or key employee. This means that an organization is prohibited from allowing its income or assets to accue to insiders. An example of prohibited inurement would include payment of unreasonable compensation to an insider. Any amount of inurement may be grounds for loss of tax-exempt status.”
March 31st, 2011 at 3:32AM
How can it get worse? Yet it does!