Do you have to report your donations?

[bustybabe91]

I'm asking for a friend here but do you have to report your donations to SL?  There is someone I know from SL in the furry/feral community that says they've gotten other people in trouble for not reporting their donations and that those people's accounts have gotten suspended on SL, which is true - those people are gone for good.  I've been asking around other sims but it seems no one really knows anything and they don't usually report their donations (even when they get regular 10000L+ donations), so I was wondering if it was something that you could actually get in trouble for.  I've read SL's terms of service and can't find any immediate answers.  Maybe the person was just trying to scare my friend, but I wanted to ask others on here and see if anyone knew anything about this.  The person I speak of is notorious in the furry/feral community for getting many accounts banned and suspended and has made the claim that they know someone from LL personally who has helped banned these people.   If you or anyone you might know may be able to help shed some light on this, it'd be greatly appreciated.  Thanks!

Edited January 1, 2018 by bustybabe91

[Chic Aeon]

6 hours ago, bustybabe91 said:

I've been asking around other sims but it seems no one really knows anything and they don't usually report their donations (even when they get regular 10000L+ donations), so I was wondering if it was something that you could actually get in trouble for. 

I agree that "donations" is a bit iffy. If we are talking about a regular person (not a non-profit entity) that gets money from another person in a way that we would call "tips" in the US (such as for services rendered as an escort maybe as that is a pretty hefty "donation") then that IS income and while I doubt seriously that Linden Lab would do much about it, if you cash that money OUT it become real life dollars (or perhaps your country's currency as I don't know how that works. 

THAT money is indeed taxable and after a certain amount (and regular $10,000 "donations" would certainly add up to that) is reported the the IRS (in the US - again have no idea about other countries). 

IF you spend your "donations" within the game then I can see no way that you are breaking any laws or any TOS statues as I understand them. 

I think most folks writing on this thread are fairly confused about what you are talking about LOL> I know "I" am. So it is difficult to give a valid opinion when the question is so vague. 

So $10,000 linden is roughly $40 US. Weekly that would be over $200. And if you cash out that is real income that would need to be reported.  That's pretty much the bottom line as I see it. But again it isn't likely Linden Lab would get involved unless it was a money laundering thing. THEN they for sure will. 

[Lindal Kidd]

No, you do not have to report donations.  

On the other hand, your "friend" could be entirely correct that he's gotten people in trouble by donating money to them.  Here is how that would work.

1.  A Bad Person steals a credit card in Real Life, and uses it to buy a lot of $L.
2.   The Bad Person then gives a big chunk of this fraudulently-obtained money to you.
3.   When the credit card is reported as stolen, LL traces the money and finds a big hunk of it in your account.
4.   You are permanently banned for fraud (attempting to launder stolen $L).

The solution to this is, if someone gives you a large gift (I mean, like $L10,000), don't spend it.  File a support case and ask LL to determine if the money is legitimate.  If it is, you can keep it.  If not, LL will take it, but at least you won't be banned.

[Rolig Loon]

I am slightly confused by your use of the term "donations" but I assume, as Lindal did, that you are talking about tips left in a tip jar in your parcel. I'm not sure just who you might be expected to report donations to, and there is certainly no requirement in the TOS or any related LL policy.  Anyone may give L$ to anyone else.  Even under the very unusual circumstances that Lindal described, it would be unlikely for Linden Lab to cancel your account without warning.

[Lindal Kidd]

2 hours ago, Rolig Loon said:

... Even under the very unusual circumstances that Lindal described, it would be unlikely for Linden Lab to cancel your account without warning.

Well, we have actually had people here in Answers that had exactly that happen to them...and I mean, within minutes of them receiving the stolen funds.  Which is why I recommend filing a prophylactic Support Case right away.

[Rolig Loon]

1 hour ago, Lindal Kidd said:

we have actually had people here in Answers that had exactly that happen to them...and I mean, within minutes of them receiving the stolen funds. 

The only circumstance in which I can imagine that ever happening would be if LL had been watching the account for a while and had observed a pattern of receiving stolen L$ repeatedly.  I cannot recall any case in which we have evidence that an account has been banned for a one-time offense of this type. 

[Lindal Kidd]

I recall one poster who said her account had gotten banned about twenty minutes after receiving a large gift from a stranger.  I wish I could remember more about it...as it is, you'll just have to take my word for it...or chalk it up to advancing senility, your choice!