Are site donations taxable income?

[cherokeeflyer]

It has become real popular for people to put on a "donate to this site" button on their blogs, forums or other websites. Paypal even has donate buttons where you fill out a form and they give you the code to add to your web page.


So, is this considered 'income' to the website owner that needs to be reported to the IRS?

 

[andrew25]

Yes, the donations received are taxable as business income. And it is not taxable if your organization is non taxable like a charity or church. Further many people I know doesn't announce their donations amount and they would keep it as much as possible without paying tax for it.