Clan site - Donations

[admin7-75th]

My friends and I have a website, a game server, and TeamSpeak server we pay for monthly. We like to play Armed Assault 2. All this costs money. I was hoping to use the PayPal Donation button so that my buddies could send me money to keep the servers up. But I'm not a "Non-Profit Organization".

Is it okay to use PayPal like this? Is the IRS going to hunt me down? What's a 1099-DIV? Does PayPal report money sent to my Premier account to the IRS? Arghh... I can't find a straight answer. Please help!

Thanks! Worried about my credit report and the IRS....

[skier]

You do not have to be a "non-profit" to accept Donations.   The actual "non-profit" status only applies if have legitimate 501(c)(3) status and want to apply for a lower transaction processing fee.   Basically anyone can put a Donation button on their web site for any reason.  You simply pay the standard 2.9% plus $.30 transaction processing fee on the TOTAL Amount of each Donation.

If you're unconformable with using the word Donation, you can also use a Buy Now type item button.  This can be setup like these Pay Your Bill Online Examples.   It's really just semantics.   Regardless of the type of item button code used or the wording involved, you still pay the standard processing fee per transaction.

Regards,

skier