We aren't competing against the P5. They are literally in a different league despite the "D1" moniker that everyone has.
Schools the size of UND are going to use NIL the way it was more closely intended to be. 1883 is partnering with businesses and non-profits to help facilitate deals with athletes. Donations from individuals will help supplement these deals that are being made. It isn't going to be life changing money but it is something on top of FCOA and Alston to help make it a little harder to turn down some of those outside offers. Not going to work on everyone but the hope (for UND and other Summit/MVFC schools) is it at least makes some difference and keeps a few more of those players around.
NIL will absolutely be a factor at UND's level, but in the way that P5 schools are going to dangle much bigger dollar amounts to get the best players at the lower levels.
As for the D2 crap.....UND is one of the few schools in the nation that offers both FCOA and Alston, with only around 50 or so doing the latter as of last fall. Again, not life changing money but it is a lot more than most schools at UND's "level" is currently doing.
Not tax-deductible for business, but they can write it off as an expense, lowering income, lessening tax burden.