On Mon, 28 Sep 2009 16:49:29 -0700 (PDT) Dewald Pretorius <[email protected]> wrote:
> 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? All hypothetical, no malice imputed... - What if program costs run away and there isn't enough $$$ to cover the obligations? How much can developers legally recover? 30%. - Above a certain $$$ threshold, the accounting requirements change. Reporting 70% of the distribution as a gift effective triples the total payments that can be made to a developer before tax status changes. - Some development *is* done by non-profit organizations or could possibly be donated to a non-profit. If the structure of the developer agreement was conduscive to it, as this is, then non-profit work and code donations to non-profit orgs would be encouraged and there could be tax benefits. Chris Babcock
