15 {{ upvoteCount | shortNum }}
15 {{ upvoteCount | shortNum }}

DONATIONS PLEASE

by goindeep
12 replies
Hi all

Wanted to ask in general terms what sorts of laws, ettiquette, morals, ethics or anything else I should know of with regard to donations.

Does anyone have experience with their sites and accepting donations?

I know the laws will differ from country to country so if anyone in AU has any pointers that would be great.

Basically I am thinking of putting together something that is more of a hobby and something I like to do. I would still want to profit from it yet I would like to donate a certain amount in terms of percentage to charities each month.

So I guess another more specific question would be; is it ethical to both profit from sales and accept donations myself then split it 50/50?

In my eyes it is as I would be doing all the work and everything would be open and clear i.e. "buy this or donate to me and ill give 50% to a charity and ill blow the rest on this site and coffee" or something to that effect?

Hope this makes sense, im hung over right now.
#donations
  • Profile picture of the author Warrior X
    Is it ethical? I think yes.

    These guys built a thriving business out of the donation model.
    TOMS Shoes & Eyewear Official Store | TOMS.com

    People love the feel good way of doing business.

    Jeremy
    Signature
    #1 In WHITEBOARD VIDEOS - Great Way To Tell Your Story!
    Available Here
    {{ DiscussionBoard.errors[7649843].message }}
    • Profile picture of the author Rbtmarshall
      Originally Posted by TrustedCopy View Post

      Is it ethical? I think yes.

      These guys built a thriving business out of the donation model.
      TOMS Shoes & Eyewear Official Store | TOMS.com

      People love the feel good way of doing business.

      Jeremy
      Yeah, Tom's has been known for their donation of a pair of shoes for every pair purchased. But they also have a non-profit side to their business called Friends of Toms. TOMS itself is definitely for profit
      {{ DiscussionBoard.errors[7649992].message }}
  • Profile picture of the author oldschoolwarrior
    Are you accepting donations 'on behalf of' a cause?
    Or are you accepting donations for your website or product?

    If your wanting to run a charity for your cause, you would need to create a non profit.
    Than, you should donate 60% or more.

    Originally Posted by http://www.charitywatch.org/criteria.html

    PERCENT SPENT ON CHARITABLE PURPOSE
    This is the portion of total expenses that is spent on charitable programs. In CharityWatch’s view, 60% or greater is reasonable for most charities. The remaining percentage is spent on fundraising and general administration. Note: A 60% program percentage typically indicates a “satisfactory” or “C range” rating. Most highly efficient charities are able to spend 75% or more on programs.
    {{ DiscussionBoard.errors[7649857].message }}
    • Profile picture of the author goindeep
      Originally Posted by oldschoolwarrior View Post

      Are you accepting donations 'on behalf of' a cause?
      Or are you accepting donations for your website or product?

      If your wanting to run a charity for your cause, you would need to create a non profit.
      Than, you should donate 60% or more.
      Good question.

      It would be both but neither.

      I would sell stuff, merch, ads etc and also accept donations for the site and the plan is to split everything 50/50 (turn over, not profit) with a different charity each month.

      Kind of like those people that give 1% of everything they earn only I would like to give 50% as its more of a hobby if that makes sense.
      Signature
      {{ DiscussionBoard.errors[7649914].message }}
  • Profile picture of the author Rbtmarshall
    yup, you'll need a non profit to accept actual donations. 501c or similar
    {{ DiscussionBoard.errors[7649903].message }}
    • Profile picture of the author goindeep
      Originally Posted by Rbtmarshall View Post

      yup, you'll need a non profit to accept actual donations. 501c or similar
      Are you sure?

      I wouldn't be accepting it as a non-profit, id be accepting it as a donation to myself/site and then re-donating that money if that makes sense?

      Hmmm, on second thoughts I think it may be better if I just sell stuff and give half that money...
      Signature
      {{ DiscussionBoard.errors[7649926].message }}
      • Profile picture of the author Rbtmarshall
        Originally Posted by Andrei Rotariu View Post

        ...
        Hmmm, on second thoughts I think it may be better if I just sell stuff and give half that money...
        That would definately be the better option.


        I know paypal has a donate button many people use for bullshit, but it's not a true donation, its more of a gift.

        Paypal hints at thet themselves.
        https://www.paypal.com/cgi-bin/websc...-intro-outside

        Note: This button is intended for fundraising. If you are not raising money for a cause, please choose another option. Nonprofits must verify their status to withdraw donations they receive. Users that are not verified nonprofits must demonstrate how their donations will be used, once they raise more than $10,000.

        Once you are gifted more than $10k, you need to pay tax on it. That in my opinion is why paypal don't really care unless a normal user or business collects over $10,000 in gifts using the donate button.

        Not sure about Australia law, but that is how it is in the US
        {{ DiscussionBoard.errors[7650038].message }}
  • Profile picture of the author Rbtmarshall
    I was meaning that someone would not be able to consider the money they give to you a donation(tax deduction), unless you were a charitable group.
    {{ DiscussionBoard.errors[7649965].message }}
    • Profile picture of the author goindeep
      Originally Posted by Rbtmarshall View Post

      I was meaning that someone would not be able to consider the money they give to you a donation(tax deduction), unless you were a charitable group.
      Thanks.

      That makes sense.

      How doe sit work if I just choose to give a certain amount of my turn over?
      Signature
      {{ DiscussionBoard.errors[7650041].message }}
      • Profile picture of the author oldschoolwarrior
        [DELETED]
        {{ DiscussionBoard.errors[7650078].message }}
        • Profile picture of the author oldschoolwarrior
          How doe sit work if I just choose to give a certain amount of my turn over?
          Just like any other business. Your profitable business chooses to donate to a cause.
          Its a business transaction with 'good cause' merit. Its more of a selling point than a donation.
          You still claim all the income in your taxes, and deduct the amount of your official tax free donations.
          {{ DiscussionBoard.errors[7650088].message }}
          • Profile picture of the author goindeep
            Originally Posted by oldschoolwarrior View Post

            Just like any other business. Your profitable business chooses to donate to a cause.
            Its a business transaction with 'good cause' merit. Its more of a selling point than a donation.
            You still claim all the income in your taxes, and deduct the amount of your official tax free donations.
            Makes sense. Thanks.

            Stay tuned I may have something up and running soon...

            If you have half a funny bone in ya, you might just like what Im going to do
            Signature
            {{ DiscussionBoard.errors[7650488].message }}
            • Profile picture of the author Martin Avis
              I won't discuss the legalities because they will vary from country to country, but the ethics seem pretty clear to me.

              If you are open and up front with your customers that a percentage of SALES revenue goes to charity then it seems fine to me. However, if you are also asking for DONATIONS to a charitable cause, then there should be no question of you keeping any part of them.
              Signature
              Martin Avis publishes Kickstart Newsletter - Subscribe free at http://kickstartnewsletter.com
              {{ DiscussionBoard.errors[7651141].message }}

Trending Topics