Avoid unnecessary taxes for donation

posted by skyisblue , 936 days ago , show insights

I'm working on a side project that's not yet fully-baked. As such, I don't want to collect real money just yet because I don't want to increase my personal tax burden. In addition, having to pay more taxes is just annoying at an early stage of building a product.

In short, I prefer not to have to add to my tax return when I'm still prototyping my SaaS idea.

Currently, there are a good number of places to accept donations, such as: ko-fi, Patreon, Buy Me A Coffee, liberapay, Github sponsors However, all of these websites pay the project owner money, either through Stripe, Paypal, Payoneer, or a combination of.

My task here is for a platform for me to ask for donations or payments that pay me not in dollar amounts but in virtual gift cards, so that I can:

  • Validate my idea
  • Use the payments to pay for operational costs: if I can collect payments in the form of virtual gift cards, I can use them to pay for web server costs.
  • Avoid having to deal with taxes that come with collecting real money, at least until my product has been fully built out and has real users.
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