Understanding
jurisdiction over scholarships and prize funds
Legislative-Compliance is the documented records-keeping of accepting prize money in an event, based on place finish, including any and all expenditures required to compete in the event. This information must be maintained and provided when a potential collegiate athlete completes the Amateurism Questionnaire for their perspective athletic association. Each of the four athletic associations (NCAA®, NAIA®, NJCAA®, and NACE®) have their own bylaws with legislation over prize money. Scholarships 4 Us® maintains these records and the prize funds on a students' behalf to protect their eligibility under The Rule of Amateurism™.
The IRS Topic No. 421 scholarships, fellowship grants, and other grants recognizes these award earnings as tax-free so as long the "amount is used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution." Any other usage of the awards for incidental expenses, such as room and board, travel or optional equipment must be reported as gross income.
The NCAA® permits potential collegiate student-athletes to earn prize money based on place finish in events so long as the amount does not exceed actual and necessary expenses to participate. The NCAA® requires all potential collegiate student-athletes to complete their Eligibility Questionnaire to determine if amateurism status has been maintained by requesting documentation of sports participation and any accepted prize money. These records are to be kept by the student-athlete and any misinformation or falsification could lead to a determination resulting in a permanent ineligibility status.
Potential collegiate student-athletes must complete their Eligibility Questionnaire and the bylaws state that no potential collegiate student-athlete can accept prize money after July 31st, the 'last day of summer,' prior to enrolling into an NAIA® institution. These records are to be kept by the student-athlete and any misinformation or falsification could lead to a determination resulting in a permanent ineligibility status.
Potential collegiate student-athletes must complete their Amateurism Questionnaire and the bylaws state that no potential collegiate student-athlete can accept prize money after their 19th birthday or once enrolled in an NJCAA® institution- whichever one comes first. These records are to be kept by the student-athlete and any misinformation or falsification could lead to a determination resulting in a permanent ineligibility Status.
Potential collegiate student-athletes must complete their Eligibility Certificate and the bylaws do not state legislation governing student-athletes from accepting prize money based on place finish.
