On Dec 3, 2007 1:52 PM, Christopher Barker <[EMAIL PROTECTED]> wrote: > >>short of incorporating as a nonprofit. > > That's sure a lot of work -- can the PSA host this sort of thing? It > would be a whole lot easier to use an existing organization.
Well, noone is proposing setting up an organization, just using sf's existing donation infrastructure. I found this on the question of whether the donations are taxable income: http://taxprof.typepad.com/taxprof_blog/2005/02/tax_treatment_o_1.html and some more info here http://www.lclark.edu/~bojack/taxf04xans2.htm It's not an issue I am too concerned about, really. In the unlikely but pleasant event the donations are substantial, I think the costs of the sprint or other uses of the donations for development could be deducted as "expenses for the production of income", eg as in this hypothetical example from the 2nd link: Joe also has a blog and would want to know whether he can deduct the $160 he spends on the ISP payment and the ($40 per month multiplied by 12) $480 he spends on his Internet costs. He would also want to know whether he has to report the donations of $150. The issue is whether this is a hobby or a profit-oriented activity. IRC 183(c) defines an activity not engaged in for profit as any activity other than one with respect to which deductions are allowable under IRC 162 (the "ordinary and necessary" business expenses) or under IRC 212 (expenses related to the production of income. There is also a rebuttable presumption in IRC 183(d) that an activity is engaged in for profit if, in three or more of five consecutive years, the activity earns a profit. IRC 212 allows for a deduction of expenses for the production of income. Since 20% of the time Joe spends on the Internet is related to his blogging activity, he will be allowed to deduct 20% of the $480, which is a deduction of $96. The $96 for his Internet service the $120 he pays his ISP total to costs of $216. Since the $216 exceed the donations of $150 (which will be includable in gross income since they are online tips and thus includable in gross income, Reg. 1.61-2(a)(1) and the point in Olk v. US that if it isn't given with detached and disinterested generosity but is, instead, for some service, which is what these donations are) then Joe will have a loss of $66. ------------------------------------------------------------------------- SF.Net email is sponsored by: The Future of Linux Business White Paper from Novell. From the desktop to the data center, Linux is going mainstream. Let it simplify your IT future. http://altfarm.mediaplex.com/ad/ck/8857-50307-18918-4 _______________________________________________ Matplotlib-devel mailing list Matplotlib-devel@lists.sourceforge.net https://lists.sourceforge.net/lists/listinfo/matplotlib-devel
