I've been seeing a lot of posts recently that seem to be confused as to just exactly what a donation is.
So I'm going to respond in full to common defenses I see from Admins trying to explain how their pay to play systems are really a form of charity.
Defense #1It was a donation! They have no responsibility to do anything!To be clear, a donation is money given without receiving anything quantifiable in return.
If a server offers weapons, armor and various other equipments(even if these items are questable), it ceases to be a true "donation".
Cute hat rewards are about as much as you can offer and claim to still be on donations and not sales.
Most sites go so far as to set up a currency exchange. Often times being so lazy as to say $1 = 1 credit.
This currency is then usable only within a closed market.
A currency exchange is not a donation.
It's more analogous to a gift card.
Defense #2But it's only legal for them to accept donations, they can't sell anything!False. It's illegal for them to run a pServer even if it's %100 free and doesn't accept any form of donation. Gravity owns the rights to the game including distribution. Only by paying for a license is distribution legal.
The reason they say it's a donation has nothing to do with legality. It's mostly so they can avoid Paypal fees and also so they can wave their hands in the air and say "It was a donation. I can't be held accountable!"
So when a GM makes the "It was a donation" cop out, do not let them get away with, unless they had a genuinely reward free donation system. But then the few servers that are actually run like that don't seem to have corrupt, fail admins

The mind boggles.
Defense #3But if we fail to offer nice items not enough people will donate to cover server costsThank you for acknowledging that you can't operate off of charity and instead have to use sales. Saying "My charity can't work, so I'll set up a business and
call it a charity" is simply not honest.
Defense #4Do you know how much time I put into this? It's not about the money! I'd make more working at McDonaldsThe fact that you're poorly compensated for your time doesn't change the fact that you're selling things, not taking donations.
I think one of the primary complaints and points of contention is the incorrect classifications and false martyrdoms.
I wonder how many poeple would really be bothered by the following %100 honest statement:
I spend a lot of time on this server. Time I could be spending doing something else. I don't expect a Rolex watch and new 24" rims. But is it so much to ask that the food I'm eating and electricity I'm using while I script for you be covered?
Why no, imaginary Admin, it's not. I'm actually perfectly fine with this. I think most people are and I think most donations don't even cover that on top of server costs.
However, it doesn't change the fact that you've set up a market, not a charity. And that leaves you with a responsibility to your customers, even if you are in fact a poorly paid shop owner.
Now in case you feel I'm beating up too much on server admins, please read the
first part of this discussion where I make the case for why there's nothing wrong with dedicated admins offering pay to play servers.