Is it lawful to accept donations on a semi business-like website?

Question

So I am planning to open up a website to accept requests for FREE custom made graphics, but at the same time i want to give the customers an opportunity to donate me the money through paypal or something...in which the money donated will go to a cause. So do I have to somehow be an established business and be certified to accept the money as a business? Or if the money goes into my personal account, is that alright?

Answer 1

recieving money personally is alrigt, banks care of transaction charges and taxes but if u name a cause u'd better register a trust  purpose specific, also a trust can giv you the authority to spend money and draw on urself, as manager of trust if u open that as business u'd need to set up the trust again, yup u can offer premium services and profit on that but see a trust may do and u can mix up things with ur personal account. Internet space is being increasingly controlled so better play safe, register!! many sites do that at a low or no charge!

Answer 2

Is it lawful to accept gifts? Yes.

Do you have to be an established business to accept money? No.

There is no law that requires a person to be an "established business" in order to sell goods or accept money for services. Certain professions or businesses require licenses (Doctors, Lawyers, Banks), but opening a store, or starting a landscaping business does not require any license or certificate.

If the donations go to you, then they may be taxable. If you are forwarding all the money to not-for-profit organizations, then the money collected is not taxable, but you should maintain receipts to prove that ALL the money went to charity in case of an IRS inquiry.