Then I don't understand. Why would OneForty elect to pay the
developer's 70% in the form of a gift or donation to the developer?


On Sep 28, 8:34 pm, Nick Arnett <> wrote:
> Not sure how it works in other countries, but in the U.S. revenue is revenue
> is revenue; most gifts are income to the person who receives them.  Even if
> you are a non-profit, if you're making a profit from a substantial part of
> your operations, you can end up owing taxes on it, even if you call the
> income a gift.  Otherwise, everybody would call everything a gift and nobody
> would pay taxes!
> The fundamental rule is that when the "gift" is actually in exchange for
> something of value, it is income to the receiver and not deductible as a
> donation to the giver.
> Nick

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