alt Hacker News> the payment processor (who deals with sales taxes rather than income taxes) should worry about the taxability of the transaction rather than the tax status of the recipient
A donation is not a sale of a good or service. This is not a question of sales tax collection.
I didn't say it's a question of sales tax collections. I said a payment processor deals with sales taxes.
In this case they clearly have to exempt this transaction from sales tax in order to support it, when other transactions through their system do get sale tax applied. So the mere fact that they have to deal with sales taxes in general is likely to introduce additional complications for them even here, in cases where sales tax turns out not to be applicable.