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I wish someone from kickstarter would answer this question once and for all:

Is it a donation or is it a purchase?

This question comes up constantly ( http://news.ycombinator.com/item?id=4506601 e.g.) when kickstarter projects are featured here, TFA is actually about this topic more-or-less specifically. At the risk of sounding cynical: I think it's in kickstarter's financial to not answer this question- they're better off with the confusion & everyone seeing the fee-paid/donation as they want it. That way it's a payment for a product when you have your wallet out- it's a "donation" when the project fails and you are left with nothing. :)



It's a donation, and you get a "prize" for donating a certain amount.


I would say the answer is "No.". You put in money. You get back one of the product if it succeeds in being produced. That is not a donation or a purchase. It's not exactly default-swap surgery; people can handle a hint of complexity in their trades.




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