(I hope this is a proper forum to post this question)
I am very reluctant to ask others for donations. I have a hard enough time receiving payment when it is expected for jobs that I do. But, life as it is, isn't easy. And I've decided that I need to find ways to support myself & my family.
I see that many artists use programs such as Flattr, Patreon, & Bitcoin to request donations & support their work. I have also glanced at Liberapay. Thinking about signing up on a program like one of these & asking for money makes me somewhat nervous & uneasy. But I want to ask for any advice, encouragement, or information on how any of these programs work & perhaps how to go about it. The only major online currency platform that I have used is PayPal.
I haven't looked in depth into any of these programs. And I am honestly a bit ignorant/naive when it comes to currency & business. And that is only part of the reason I am hesitant to sign up for anything like this.
Here are some questions/concerns that I have (but don't limit your answers/advice to just these):
- Do these programs integrate with PayPal or any kind of direct deposit to a regular bank account? (*shutter* event saying "bank account" on a site like OGA makes me feel greedy)
- Does my location affect how any of these programs apply to me? (I am in the U.S.)
- The term "tax" is obscure, complicated, & confusing to me. Will I need to deal with paying government taxes for receiving donations via these programs? (perhaps OGA is not the best place to ask this question)
- I understand that Patreon is designed for patrons to receive some kind of recompense for their donations. I want to try & avoid an obligation like this (jeez that sounds selfish) because I can't afford the anxiety of owing anything more to others at this time (this might actually be one of the main reasons that I do not like asking for money/donations). Perhaps in the future I will feel more enabled to do so.
- I understand that Patreon is a business & makes its way by billing a portion of donations received. Do the other programs work similarly, or will I have to worry about other types of fees?
- What else might be required of me by signing up for any of these programs.
- What opinions does anyone have about the benefits of one/some of these programs over the others? Do you recommend one over another?
- What experiences do you have with any or all of these?
- Are there any other recommended programs/sites?
- I have also heard the terms crowd funding & crowd sourcing, & have seen sites such as Kickstarter, GoFundMe, & Indiegogo. This also sounds interesting to me as I have often considered creating a project but don't feel I have the resources to do so. Are these programs essentially the same as those I mentioned previously?
I love contributing to the free & open source community, & of course I will continue to do so whether or not I receive money. But I know that it could help me out quite a bit.
Edit: Correction: "...it could POTENTIALLY help me out..."
My only adivce is do not use paypal. Paypal donations are only meant for non-profit organizations. You are not one of those so you run the risk of losing your account and possibly the money you recieve. Taxes will depend on where you live and what you use. Kickstarter and Patreon are pretty much always considered taxable income because the person donating will get something in return for their donation. Gofundme is the only one that I know of that some people mention could be tax free and considered a gift depending on the situation. It's really only a gift though because the people donating expect nothing in return. Another way to look at it are the tips that waiters and waitresses recieve. Those are taxable income. It's going to be hard to prove that the donations you are getting are only a gift and not because people feel donating will yield more free art from you.
And not to be a downer, but I wouldn't expect hardly any money from donations. If you need money you are better off doing work for a job rather than hoping for donations that are still most likely going to be considered income and taxed that same as the job.
So yeah all those kickstarters and indiegogo projects that get a lot of money are heavily taxed due to such a high amount of income in one tax year.
Edit: To clairfy, don't use the paypal donations button/option to get donations directly. Using a paypal account for another site that manages donations would ok.
Thank you isaiah658, that is valuable information to me. And I hope it didn't sound like I am against paying taxes. It's just confusing to me, & I can't afford to hire someone to do my taxes at the moment.
Tanks for the PayPal info too. I hadn't thought about it having its own donation system. And I think I will take your advice & not use it.
Thinking more on the tax issue, I remember that my family has a friend that is exerienced in the matter. I may ask her about it. I believe that I would only have to worry about paying taxes on these donations if my total gross income reached a certain amount in a year.
All of these programs sound reputable & trustable. I suppose it just means that I need to keep researching them in order to find one that I feel comfortable with.
And you are totally right, I don't want to get my hopes up about making a sustaining income through such a program. Perhaps if I were Vincent van Gogh ;).
Ahhh I don't know what to say, We all have been there life gets hard sometimes but it will clear up in the end it always does I wish you the best, And I do agree with isaiah658, As for work you may just may find some on freelance sites there is now some freelance sites for graphic desingers and pixel artists as well, It is a highly competitve field with high experinced people spending their free time for some extra cash, The jobs are swarmed by people sometimes it fells a bit crowded too crowded, You can also look for a job at a gaming company or join some people making a game themselves all of these could be a supplement to your income, Look at this game:
https://play.google.com/store/apps/details?id=com.pockettrend.neomonster...
I know a guy that helped with some pixel art and he does those projects from time to time the project itself yielded some pretty good money with it's price/downloads, You can join such indie projects to supplement your income
This is not to be construed as tax advice. You should consult a tax professional.
Your question would be easier to answer if you could be VERY specific about what you want to do. Patreon has some information about taxes on their site.
https://www.patreon.com/taxes
I will explore that there may be a difference between selling a product, selling a service, getting royalties, and possibly receiving money for patronage, etc. I think Patreon would be a good option for you, but they aren't really donations always.
Rules vary considerably based on where you live, do business, etc. Also consider that crowdfunding is still relatively new and rules are probably going to change quickly. CPAs may have varying opinions as well, especially the less conservative ones.
https://www.sapling.com/6932429/donations-received-do-claim-taxes
One of the reasons I posted this is because I'm interested in the gift in terms of "full consideration" because -- what if you let people give you a dollar, but they got nothing?
Hope this helps. You'll just have to do the research.
Don't Forget the Bard!