NIL collectives are groups funded by wealthy alumni and donors, separate from the university, that pay college athletes for "Name, Image, and Likeness" (NIL) endorsement deals. These deals are typically negotiated before an athlete commits to joining a college. Before 2021, any payment to college athletes was banned. Once NIL deals were legalised in 2021, collectives quickly became the dominant payment channel, handling the majority of all NIL money. In 2025, a legal settlement allowed universities to pay athletes directly through a capped revenue-sharing model. Collectives remain significant even after this reform, often operating alongside or in addition to direct university payments.