CCP Fallout
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Posted - 2011.05.04 13:50:00 -
[1]
Heya Musashi,
I'd like to address this part of your post: "I give to many charities but CPP you produce this game and you make money every time someone buys PLEX."
Not at all. When a PLEX is donated, 100% of the proceeds is given to charity. If the PLEX is purchased via Euro, we absorb the VAT. We also absorb any fees. This information is provided in our FAQ.
Additionally, Doc and I spoke directly to the CSM about the PLEX for Good program during the CSM 5 December summit (notes can be found here). The following may be of interest to you and other persons participating in this thread:
 Quote:
CCP has polled players regarding concerns about this program. One major concern is whether charitable giving causes a significant rise in the ISK value of PLEX. However, CCP statistics on PLEX costs do not appear to show a significant correlation between charity drives and PLEX price increases, and PLEX bought to donate are not a large part of the total volume of PLEX transactions. However, CSM noted that the perception that PLEX can be used for purposes like Charity and FanFest tickets (and thus, there will be greater demand for PLEX) could drive prices upwards due to speculation.
The CSM noted that the ôweatherö (short-term effects) should not be confused with the ôclimateö (long-term effects). However, at this time, there is insufficient evidence to warrant serious concern, though if charitable giving significantly expands, this may be a topic that needs to be revisited.
CCP emphasized that all donations are made in the name of the EVE Online Community, not CCP. CCP strongly believes in the power and generosity of the EVE community, and views their role as simply making it as easy as possible for them to help others.
CCP does not benefit in any way from charitable giving by players. 100% of the value of PLEX donated is passed through to the charity. CCP absorbed all VAT levies, credit card transaction costs, fraud screening expenses, currency conversion charges, and the cost of the time spent by the staff (GM Grimmi) that administered the program.
CCP does not receive a tax credit for the donations, since the donation is made in the name of the community. CSM questioned why CCP did not make the donation in their name, receive a tax deduction, and then donate the savings to charity, but apparently the cost of explaining to the Icelandic Tax Vikings why donations of virtual money should warrant a deduction would, at this point in time, cost more than the value of the deductions. In addition, specific aspects of Icelandic tax law would limit the savings that could be obtained. If, however, it does become a win-win for everyone, CCP will consider doing this.
Fallout
Associate Community Manager
CCP Hf, EVE Online
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