In today’s rapidly evolving college athletics landscape, Name, Image, and Likeness (NIL) has become a foundational element of how student-athletes and universities approach opportunity, compensation, and revenue.
NIL refers to the right of student-athletes to monetize their personal brand, a shift that represents a major departure from the traditional amateur model of collegiate sports. This evolution has opened new doors for athletes to benefit from their visibility and influence, while also creating both opportunities and challenges for athletic departments navigating fundraising in the NIL era.
While NIL has created new opportunities for student-athletes, it has also introduced new financial pressure for universities. Athletic departments are now navigating a complex challenge: how to fund NIL initiatives without overburdening donors or cannibalizing traditional giving.
This article breaks down:
- What is NIL and the current state of NIL in college athletics
- How NIL differs from traditional fundraising
- How NIL is reshaping athletic department revenue models
- New NIL fundraising strategies
Name, Image, and Likeness (NIL) refers to the personal branding rights of individual student-athletes. Shaped by evolving state laws and federal guidance, NIL policies now allow athletes to earn compensation for activities that leverage their identity, including:
Once prohibited under NCAA rules, these opportunities are now central to the modern college sports ecosystem. NIL deals acknowledge the real economic value of student-athletes, aligning college athletics with broader trends in media, marketing, and creator economies.
This shift reflects a growing recognition of athletes’ influence and contributions while placing new expectations on institutions to support NIL opportunities responsibly and effectively.
Today, NIL is no longer optional. Across Power 5 and mid-major programs, NIL opportunities directly impact recruiting and retention.
Donors are being asked to support NIL collectives. Athletic departments are under pressure to “keep up” financially. What started as an athlete empowerment movement has quickly become a budgetary reality for universities.
The challenge? Most NIL funding models rely heavily on donor contributions, often from the same booster base that already supports facilities, scholarships, and operations.
Historically, athletic department fundraising focused on annual giving and booster clubs, major gifts and capital campaigns, and seat donations and premium experiences. These gifts were typically episodic, relationship-driven, and donor-centric.
On the other hand, NIL funding is ongoing. Often athlete or sport-specific, more transactional in nature and frequently routed through NIL collectives.
Donors who once gave to facilities or endowments are now being asked to redirect or increase their giving toward NIL. For many athletic departments, this has resulted in donor fatigue, confusion, and internal competition for the same dollars.
The importance of NIL fundraising cannot be overstated. For many student-athletes, NIL provides:
This is especially critical given that most college athletes will not pursue professional sports careers. NIL fundraising allows them to capitalize on their collegiate platform, potentially laying the groundwork for future business, media, or entrepreneurial opportunities.
At the same time, NIL fundraising is reshaping the relationship between athletes and institutions. It has prompted new conversations around athlete rights, institutional responsibility, and the evolving role of athletic departments in supporting NIL success.
Ultimately, NIL fundraising is more than a revenue tool, it represents a fundamental shift in collegiate athletics, signaling a more modern, flexible, and equitable approach to athlete development and compensation.
NIL has accelerated a shift away from donation-only models toward diversified revenue strategies.
Modern athletic departments are now exploring:
In short, NIL is pushing athletic departments to operate more like modern revenue organizations, not just fundraising entities.
One of the most promising developments in NIL fundraising is the emergence of alternative models that don’t rely on asking donors to give more. This is where NOCAP Revenue enters the conversation.
Rather than soliciting additional donations, NOCAP helps universities and athletic departments identify alumni and supporters who own businesses and turns everyday business spending into NIL-supporting revenue.
Instead of writing another check, alumni-owned businesses partner with vetted service providers for core needs such as:
Credit card processing
Logistics
Benefits Enrollment
Energy Consulting
Payroll and HR services
Retirement plans and benefits
Facility and operational services
A portion of that business revenue is then redirected to support NIL initiatives at no additional cost to you.
This approach unlocks a powerful opportunity for athletic departments:
For alumni-business owners, it’s not a donation. It’s a business decision that aligns with their values. For athletic departments, it’s a way to monetize NIL beyond collectives, expand the funding pool beyond traditional boosters, and build long-term partnerships instead of one-time gifts
This model reframes NIL fundraising from “asking for more” to creating shared value.
As NIL continues to evolve, so must the way athletic departments fund it.
Programs that rely solely on traditional fundraising or donor-driven NIL collectives will face increasing pressure. Those that embrace diversified NIL revenue models, alumni-owned partnerships, and business-driven strategies will be better positioned for long-term success.
