Cool Tech
Giftfile Project
The Giftfile Project was mentioned on Slashdot a few days ago -- the idea is that this project is intended to jump-start the gift economy by creating pools of money that are dedicated to a particular work:
The Giftfile Project enables authors of computer files containing nonproprietary intellectual works (free music, literature, software, etc.) and their supporters (fans, users, etc.) to participate in a gift economy. It will host the first giftpool, an entity accepting tax deductible lump donations which can be allocated to these files in an automated and efficient manner, supporting transactions as little as .01 USD.
I think this is a really cool concept -- I had a very similar idea back in 2001 at O'Reilly's OSCON -- I wanted to do the exact same thing, but mainly for sponsoring open source projects. I mentioned it to Gordon and his impression was that a donation that was earmarked for a specific purpose would not be a tax deductable donation.
Given what I have learned about tax-exempt non-profits and how they are structured to prevent people from funneling money through them to escape paying taxes, this approach does seem like the IRS might object. But IANAL.
Regardless, this is a really cool concept and I hope that it takes off while steering clear of conflicts with the IRS. I think the bigger problem might be for the whole gift economy idea to take off. After the .com everything is free craze and Napster instilling virtues of content is free to a generation of young people, I think we will need to do a lot of work to swing the pendulum back to where a gift economy might be worthwhile to participate in.
That reminds me, I'm slacking on pimpin' foaf:tipjar.
Posted by Mayhem at June 9, 2004 10:40 AM
Hello,
We've already explained to the IRS exactly what our activity will be, and have been granted tax exempt status (see ). We successfully argued that nonproprietary works, as we define them, are a public benefit, and one that significantly outweighs any private gains that publishers and authors may receive in the form of money.
Also consider that our system does not incorporate earmaking as such. Donors send money to a giftpool for general use in fulfillment of the giftpool's charter, which is to support nonproprietary works. They receive privilege to suggest where that money should go, but it is up to the discretion of the giftpool. If the giftpool becomes aware of suspicious activity by or towards some publisher, it will not distribute related funds.
Finally, having tax deductible donations is a nice quality, but one that is not necessarily essential to the giftfile system. Even without it, the system will be quite efficient compared to anything else, on top of its other unique qualities such as being decentralized and automated.
-John (project cofounder)
P.S. please reconsider your site's "spam avoidance system". It excludes blind users.
