Does Twitch Take a Cut of Donations? How To Set Up Donations

There are many ways to support your streamers. One of the most popular ways is donations. You can give money to the streamer, and donations can be delivered directly to the streamer; Twitch has no involvement when you donate money.  

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So does Twitch Take Any Cut Of Donations?

No! Twitch does not take any money from your donations. These donations go straight to the streamer. Generally, most of these payments happen outside Twitch. So there is no way Twitch can get involved.

Users can make donations through CashApp or PayPal, and the streamer must set up an account to give them donations on these platforms. However, Twitch does have its tipping and donation system called Bits, and they will take around 30% of the donations. 

Streamers will usually prefer the PayPal method as it is easy and convenient to receive the money. It is also one of the most trusted apps. 

Now another question arises, does an app like PayPal take a cut? Let's talk about it below. 

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Does PayPal Take Money Out of Your Donations?

PayPal does take money out of your donations as they have a transaction fee for each payment. 

For now, PayPal charges a $0.49 fee and a 2.89% fee per donation or transaction. To simplify, if you donate your $100 to your favorite streamer, they will only receive $96.62. 

So here, Twitch is not taking any money out of you. But PayPal is. It is a small amount compared to Twitch's bit system, and PayPal is one of the easiest and most common payment modes used by many streamers to receive donations. It is also easy to link to various streaming applications. 

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You can make payment with whichever mode you prefer as long as the streamer has set up that mode of payment. 

As A Streamer, How To Set Up Donations?

It is easy to set up donations; since most streamers use Streamlabs, we will use Streamlabs to set up donations. Here's how you can do it.

Step 1: Make sure to connect your Twitch account to Streamlabs.

Step 2: After linking your account, click on the Dashboard located at the bottom left.

Step 3: Select Account, then Settings. 

Step 4: Click on Donations Settings. 

You can now select on the payment system to accept donations. 

Step 5: After you connect your payment method with Streamlabs, you can post the link to the payment in your Twitch dashboard.

Viewers will be able to see the Donation tab or panel on your Twitch channel. They can click on it, and it will lead them to streamersplaybook. Users can donate on that page without any trouble. 

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You can also set up alerts using Streamlabs. Every time someone donates, you will be notified with an alert. You can thank the viewer for donating, and this will increase the interaction and engagement on your stream. 

Is Twitch Affiliate Important To Accept Donations?

To accept donations, you do not have to be Affiliated with Twitch. These donations are made outside Twitch, and the payments directly go into your bank account. 

However, Twitch has some features which can help streamers too. Similar to Donations, they have Bits and Sub. To get these features, you need to be a Twitch Affiliate.

Usually, streamers get revenue through subscriptions. So an aspiring streamer needs to become a Twitch Affiliate.

You can make money out of Twitch even without becoming a Twitch Affiliate, but if you want to make a career on Twitch, your main goal should be to be a Twitch Affiliate. 

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Twitch Bits

Twitch bits are Twitch's version of donations. You can use bits to cheer for your favorite streamer. However, Twitch takes up about 30% of viewers' purchases. But they don't take any bits from the actual amount of bits donated to the streamer; if you have donated 200 bits, the streamer will receive 200 bits. 

The viewers will have to pay 30% extra to Twitch itself, and one hundred bits will cost around $1.40. So, yes, Twitch only takes cuts of bits and not donations. 

Do You Have To File Donations In Your Taxes?

Yes, you will have to record all of your donations. Any money you earn through Twitch, whether by donations, subs, or bits. They are all counted as taxable. However, the percentage of the money you give depends on various factors.

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It is important to pay taxes as a streamer. If you don't, you can get in trouble.

Wrapping Up

Twitch donations are a great way to support your streamer, and it can boost their morale and give them a sense of achievement. 

The streaming platform will not take any cut of the donations you make as the payment is done outside of Twitch. So you can rest assured and not worry about the streamer not receiving the whole amount. 

Making donations is not the only way to support the streamer. Sticking throughout their stream and being interactive is the best way to support them.