Future-Proofing College Athletics: How Advancement Can Bridge the Gap

The landscape in college athletics is undergoing seismic change. With the House v. NCAA settlement setting a new precedent for athlete compensation through revenue sharing, institutions are facing urgent questions about how to fund these obligations in a sustainable and compliant manner.

These pressures are being compounded by a new wave of federal policy shifts — particularly the recent executive orders from President Trump and the Department of Governmental Efficiency (DOGE) — which have led to significant cuts in federal funding for higher education.

For colleges and universities, especially those operating lean athletic departments, this double blow is straining institutional resources that had previously been earmarked to help cover athlete revenue share. Traditional cost-cutting measures won’t be enough; fundraising to better grow and develop your programs will become more essential than ever. To truly future-proof athletic programs in this era of compensation and compliance, advancement must step into a critical, strategic role.

The New Role for Advancement and Foundations

Higher education foundations have historically played a pivotal role in raising funds for athletic scholarships, capital projects and obtaining major gifts. But now they have an opportunity (and perhaps a responsibility) to lead in developing new creative funding strategies.

Here are several ways advancement teams can mobilize support.

Matching Gift Campaigns

To jump-start revenue sharing initiatives, foundations could launch time-bound matching gift campaigns that double any donor contributions toward athletics-related purposes. These campaigns are powerful tools to incentivize giving by creating urgency and amplifying donor impact.  They also send a clear message: The institution is invested in doing right by its student-athletes.

Endowments for Strategic Positions

Athletics-related endowments can offer long-term financial sustainability. Scholarships have been the traditional focus, but the new era invites creativity. Could your foundation endow the position of athletic director, head coach or even the QB1 spot — with donor naming rights attached — to free up general funds for athlete revenue share? While unconventional, these strategies mirror practices already commonplace in academic leadership roles.

Athletic Director Enhancement Funds

Flexible-use funds directed by the athletic director offer departments the agility to respond to emerging needs, be it revenue share allocations, program support or investment in athlete development. Framing these funds as enhancement initiatives allows advancement teams to engage donors looking for high-impact, high-trust giving opportunities.

Indirect Support Strategies

Foundations can also play a powerful supporting role by reducing friction. For example:

• Cap or waive administrative fees on athletics-related funds for a defined period.
• Facilitate financial literacy education for student-athletes by leveraging alumni volunteers.
• Underwrite operational support for outsourced revenue share distribution systems (rather than funding athletes directly).

Proceed with Caution: Maintaining Compliance

As advancement leaders explore new ways to support athletics, compliance must remain top of mind. Direct payments to student-athletes from a university foundation could jeopardize the foundation’s 501(c)(3) status. While the mission alignment may seem clear, the IRS does not classify student-athletes as a charitable class.

Lessons learned from the era of nonprofit NIL collectives are instructive here. Several groups have faced scrutiny (and in some cases, dissolution) due to substantial private benefit concerns. Instead, payments should flow through the university or a compliant third-party service provider, preserving both legal integrity and public trust.

Future-proofing college athletics will require a coordinated effort among athletics, advancement, finance and legal teams. Advancement leaders are uniquely positioned to rally alumni, inspire donors and innovate giving models.

Our Collegiate Athletics Services team has been at the forefront of these efforts. By leveraging our expertise, colleges and universities can position themselves strategically for success in this next generation of college athletics.

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