Legal Question in Consumer Law in California

Re: Is it legal to collect contributions?

Sure. By the way, if you like this answer, feel free to donate a buck or two. I take PayPal.

Re: Is it legal to collect contributions?

My firm does internet law. The bottom line is that so long as you are not misrepresenting what the donations are for then there is nothing wrong with seeking contributions. However, remember that any income you receive as contributions must be reported to the IRS and California State Franchise Tax Board as income, which you could probably offset as a cost of conducting business. I am not a tax lawyer so I suggest you seek the advice of a tax lawyer with regard to the tax implications.

If you are representing your website as a non-profit organization then you could get into trouble unless you actually obtain a non-profit designation from the IRS. The people who contribute to you may report you on their tax returns as a charity.

So long as you state that you are seeking contributions or donations to help "keep the site alive," or something to that effect you should not have any problems.