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by karambir 2184 days ago
The exact same thing is for India. Individuals can't get non-profit status. So you have to sell something. A software dev friend tried donate button with cta "Get exclusive support" for few months. But international audience didn't quite get it.

I have seen some gamers in India asking for donations and giving direct account details(UPI[1] details), but I am very cautious against this. I am just waiting(selfishly) for Income Tax dept to serve notice to someone and get this clarified via court case.

1. https://en.wikipedia.org/wiki/Unified_Payments_Interface

3 comments

Accepting sponsorships like this is not non-profit. You still have to report it as income and pay taxes on it.
True donations are not taxable in the UK, because they are not part of a trade.

In other words, they are not given in exchange for something; the something is freely given without the donation.

Of course there is the question of whether something is truly a donation. But charities have to deal with that question, so there are formulaic approaches to it, and advisors. Sometimes the wording that accompanies a donation must be written carefully, to clarify what is and is not expected for it, because donations can be directed to a purpose, which isn't (apparently) the same as paying for something.

I assume it's similar elsewhere?

"Tax-deductible donation" is a subset of "donations", at least in the US. I can "donate" (syn: "give") money to anyone. I don't have to do anything special for that, and in theory they should report it on their (personal) taxes as income. If I'm giving it to a registered charity (non-profit), I can deduct it as a donation on my taxes. Maybe that's part of why this piece generated so much discussion: for some, just the word "donation" carries certain connotations that others might not ascribe.
I wonder; if you had a list of donors, then you could be selling the privilege of getting your name on the list.
I'm actually curious if some type of phrasing-related arbitrage is possible. Like:

    Like my work?
    DONATE
    
    * all donations automatically receive (whatever)