Eric Rakowski Says ‘Crowd-Funding’ Web Donations May Be Taxable

East Bay Express, February 9, 2011 by Luke Tsai

Rakowski said that if the donor is motivated by what the Supreme Court has termed “disinterested generosity,” then the money can simply be treated as a gift and isn’t subject to taxation. But if some tangible perk is given in exchange for the contribution, then that transaction can no longer be viewed as a pure “donation,” per se, from a tax standpoint.