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Giftfile Project Primes Decentralized Gift Economy
belmo writes "Last week, the Giftfile Project unveiled developer documentation and reference software for the giftfile system. This system enables producers and supporters of computer files containing nonproprietary intellectual works to participate in a gift economy. Tax deductible lump donations, made to nonprofit intermediaries, can be allocated to these files in an automated and efficient manner, supporting transactions as little as .01 USD. Nonproprietary intellectual works include free software, music, and literature. To use the system, you don't have to go to some web site and register--it's decentralized, built on open standards, and does not depend on any for-profit entity. The project is currently targeting free software developers to test the system, help make it accessible to other computer users, and be its first participants."
my understanding is that if you donate, you can reduce your taxes by that amount, so essentially you pay the intrest only (ie opportunity cost of not donating)
....two people set up projects with an absolutely useless piece of free IP (like a 52x52 jpg of pure white), and start "donating" equal amounts to each other just for the tax deduction?
They would need to be recognized by the government as a non-profit organization for that to happen. I don't think "The White JPEG of Purity Society" will manage that.
When I post my software on my website under an unenbcumbered license, every and all can come by and grab it. And if I want the unencumbered software of another that has been publicly posted, I can go and grab it. Neither side needs a special system to participate in.
.asc or .md5 checksum file), and then anyone can use this giftfile to send you a donation via the giftpool. You're still free to release your software under whatever free license you choose (assuming the giftfile system supports it, which includes BSD and GPL). You don't need to register with a central authority to receive donations. Neither do users. OpenPGP based keys are used to sign giftfiles and their supporting works, to keep things secure.
That is still the case. The system is of course completely voluntary and optional. As a producer of software you can choose to participate in the system by creating special "giftfiles" for your works (your software). You distribute the giftfiles with your software (same as you would an
This is simply an innovative decentralised way of allowing donations in support of "nonproprietary intellectual works" (eg. free software). There were a lot of links in the article, and the last one seems to be the best overview.
Quidquid latine dictum sit, altum viditur.
RTFA. Donations are to "giftpools", which are non-profit organisations. Producers of giftfiles can apply to the giftpool for a "grant" of the amount of donations which have been allocated towards their giftfile. The grant may be subject to taxation, however the donation would be eligible as a deduction. It is, however, futile if you donate $500 to your friend and then claim back $500 in a grant which came from him (via the giftpool). In fact, it's pretty stupid, since the giftpool takes a small amount of the money for their operating costs.
... other participants in the giftfile system make allocations to giftfiles as described above, yet do not produce giftfiles themselves. The way they gain privilege to make allocations is by donating cash to a giftpool. Such donations are tax deductible, because giftpools are nonprofit entities chartered to fund nonproprietary works.
From the last link in the story:
and
Be aware that giftpool grants may need to be declared on your taxes.
Quidquid latine dictum sit, altum viditur.
No. "Escrow" has some specific legal connotations.
In this scheme, you're giving money to an organization, when you intend for it to reach a certain author. You trust that that organization will later give most of your money to that author. They are under no particular legal obligation to do so. Authors hopefully remember to apply to all the nonprofits for a grant, and the amount of that grant is supposedly something like the amount donated to the nonprofit "for that author". The non-profits will take out their operating costs, naturally.
Remember that "non-profit" does not mean "we don't give ourselves large salaries and cushy benefits as part of our huge overhead". It's very easy not to show a "profit" at the end of the year if you blow all your cash, after all. That doesn't make it a good idea to operate that way.
The Better Business Bureau suggests a standard for charities of a mere 35% loss to "administrative expenses". The United Way, for example, is proud to have one of the lower overheads around; they manage to keep it under 20%.
Think of it as PayPal, except PayPal gets to keep the money if the intended recipient forgets to ask, plus PayPal executives get to take whatever cut they like -- but probably less than half. They wouldn't want to be greedy.
Don't you mean 501(c)(3) ?
Your hair look like poop, Bob! - Wanker.
I'm a developer with the giftfile project. We'll try to answer some of the questions/comments in another post or at the site, but let's take a step back. The giftfile project is a only humble start, we want to accomplish two things:
Our community needs these things to get to the next level. Everyone can see these problems. Somehow the community would like to believe that there is some magic solution or that it is hopeless. Instead we need to pull together and try the simple, obvious solution.
The Simple Economics of Content:
What are your answers?
I say that in the best possible world the reader is the patron and the support is voluntary. If you agree, then let's give it a shot. Please consider helping out.