Are Donations ALLOWED?

[John Klyne]

I have been thinking...and was wondering if this is against any part of the TOS IN x10hosting...

People donate to my site...so that they choose a number 1-100 or 1-x x being the total number of people I am going to accept donations from, for that current day, or week.

When they donate, they choose a number, that no one else can choose...at the end of the day, or week...a random number is picked, by my site...the person who has chosen that random number, receives...an e-book...and 90% of all the donations...(the 10%) is taken away to pay for the e-book that my site is offering....

Well I do not think this is against any TOS, or laws in the USA...all I need is a "It is allowed" or a "It is not allowed" message...backed up by some type of fact or proof...(I DO NOT) want to get into trouble....


Lets just say, if this does not violate any laws...I increase x10hostings income substantially.

Well I hope to receive some response, thankyou for all your help...(I have yet to find a host) that will let me carry out, what I just asked, If I was allowed to carry such a thing out...

Any help, comments, or "bad thoughts" are welcome to be posted here related to something I have said...

Thankyou.
From John Klyne...

(I will also rep, the people who participate, if such rep is allowed.)

 

[diabolo]

one thing i see is calling it donations.
its not really a donation if you are offering something.

I think I remember a site having a problem with calling something like this a donation before.

But other than that I don;t see a problem

 

[Brandon]

I don't see a problem. As long as the ebook you buy allows this then I see no problem. It would basically be a raffle if I understand, am I correct?

 

[adamparkzer]

I don't see a problem. As long as the ebook you buy allows this then I see no problem. It would basically be a raffle if I understand, am I correct?

I agree, I see it more as a raffle or lottery than it is a donation.

Also, how are you going to account for the people who make a hundred one-cent donations?

 

[diabolo]

I agree, I see it more as a raffle or lottery than it is a donation.

Also, how are you going to account for the people who make a hundred one-cent donations?

make a minimum donation amount (1 dollar)
and if they donate again, just add it to their pool, with the same number

for example:

Guy 1 donates 20USD (067)
Guy 2 donates 10USD (089)
Guy 1 donates 05USD (067)

so in the end really

Guy 1 donates 25USD (067)
Guy 2 donates 10USD (089)

the parentheses are their ticket number

 

[xav0989]

It seems correct to me, and it does not violate any laws that I can think of... however, make you that when you buy the ebooks, you are allowed to give them away in raffles. In most of the terms and conditions, they use the term personal use vs. commercial use, so make sure you understand both definitions, as some companies might want to bet on the ambiguity of those terms.

 

[ichwar]

I don't see anything wrong. But I do see a bit of a practical problem. Since donating multiple times doesn't increase your chance of winning, and if you win you don't get any extra benefit for having donated alot, then everyone is just going to donate the bare minimum. If you want people to donate alot, there needs to be some extra incentive.

 

[John Klyne]

Sorry to not respond earlier. I appreciate all the responses. I have been out, for a couple of days, this week but I am back heh.


"I think I remember a site having a problem with calling something like this a donation before." Do you think you can remember what may have occured with that site Diablo?

"I don't see a problem. As long as the ebook you buy allows this then I see no problem. It would basically be a raffle if I understand, am I correct?" It's just going to be an e-book I create, it is not going to be something others know, so the 1$ is worth it Yea it would be a raffle...I just don't want to be charged/sued for any reason at all. So I am trying to research the amounts I have to stay under, so that I won't have to pay taxes, or get sent to federal prison

"Also, how are you going to account for the people who make a hundred one-cent donations?" I have a great disclaimer, and any donation above 1$, or less than $1 will be noticed as a donation to the site, to pay for fees and of course advertising/it's owner (me hehe). It will sound better in the disclaimer.

"It seems correct to me, and it does not violate any laws that I can think of... however, make you that when you buy the ebooks, you are allowed to give them away in raffles. In most of the terms and conditions, they use the term personal use vs. commercial use, so make sure you understand both definitions, as some companies might want to bet on the ambiguity of those terms."
Xav, thanks for your post.... but the e-books will be created by myself, and a number of other people, who will be helping to run this business. I'm trying to figure out what the laws in my state are regarding raffles, or any form of "games of chance."

"I don't see anything wrong. But I do see a bit of a practical problem. Since donating multiple times doesn't increase your chance of winning, and if you win you don't get any extra benefit for having donated alot, then everyone is just going to donate the bare minimum. If you want people to donate alot, there needs to be some extra incentive." Ichwar...everyone will just donate the bare minumum...and that is good It makes my calculations and work a lot less...of course I don't make much money with a min/max of 1$ being accepted, when this thing hits the market, hah, I will be making some cash every day. Just like some of those people donating, will be making cash everyday as well. There is more to it, when the site is done, I will definately link to it in the forums here.

So far, thanks for all the help and great replies everyone. I have ...not sure how many credits, but I will divide it, equally to everyone that posted here to show for my great appreciated.

THANKYOU ALL. THANKYOU!
Edit:
Xav and ichwar...I can't give out more rep today..tomorrow I will log in and send some over.

 

[Brandon]

If your in the US, I don't think you'll be making enough to worry about taxes.

 

[John Klyne]

Glad to hear that brandon, do you know what the limit is though? I doubt I will be making thousands a day, but the more information I get the better it is. If no known exact amount is known, it is okay

I appreciate the help.
Thanks.

 

[Brandon]

No I don't. Try looking on Google though, or even the IRS @ irs.gov.