Deductions & credits

Just because people call it a donation does not mean it is one. Twitch themselves even state that use of bits are not a type of donation in a "Q and A" on how bits work. 

Are there restrictions on using Bits?

Bits are a product purchased directly to Twitch.tv and is subject to appropriate tax as an online purchase. The bits are then used in a variety of ways as the user wishes. Buying bits does not equal donating to an individual. When you buy bits it is a purchase of an online good with no monetary value.

 

As to your point about it being a donation when the article refers to them generating donations is kind of misplaced since nowhere does twitch state in their terms of service or any legal document that anything is a "donation" 

 

A snip from that same wiki that might be your point:
"In June 2016, Twitch added a new feature known as "Cheering", a special form of emoticon purchased as a microtransaction using an in-site currency known as "Bits". Bits are bought using Amazon Payments, and cheers act as donations to the channel."

 

This statement is false my above article states what "cheers act as"

 

The original question should be answered by my last post and this one clarifying "bits" on Twitch.

But subscriptions are another tricky argument because they to are for a purchase of online service. Twitch subs are not just here is 5USD and that is it. Subscription comes with tangible benefits to the user such as:

  • Emotes
  • Badges
  • Special Alerts
  • Exclusive Chatroom
  • Ad-Free Viewing
  • And so on

Twitch subscriptions are both in part for supporting a creator and to obtain the perks of the channel. An argument can be made that perks are the intent of the subscription, not the support.