Giving (money) tips

[shorty]

I want to start giving tips to artists after the art is finished, so I can tip according to how the transaction went, the piece itself, as well as how they may be pricing themselves. I used to tip up front, since there's a "give a tip" option.
However, when after the fact, I'd have to send it myself. In this case, since it's a tip and not paying for the actual service, would sending it through friends and family be okay? Because there would be no reason to get the money back.
If it's not good, what would be the best way to send a tip?

[James]

I believe it's ok to use the Friends and Family option in this instance. Normally Paypal will take action against an account that abuses the option to avoid fees, but the artist isn't asking you to do so.

Personally I've sent tips in this manner.  It's too bad that Paypal doesn't have the option to let you tip on an invoice after the fact.

[shorty]

@Celestina Yeah that's how I felt, too. I tried looking it up on paypal but it only answered others questions I didn't need answers to. They better not flag me! Just in case I'll have to mention what the money is for each time.

[Arkas]

I've sent a few tips from the Family and Friends option since it is me giving them money for something I expect nothing in return for the exchange of the money. Since I've already paid for a service and the artist didn't request that I send them money that way they aren't at fault for anything and it is considered just giving a gift really. There's a very fine line, but the general consensus is along the lines that is as long as you aren't expecting a return, ability to get a refund, or using it to abuse the system then paypal doesn't care.

Also, be careful using the term "Tip" in any description since some states/regions require taxes be taken out of tips and have the artist be held responsible for reporting them if they go past a certain amount. That kind of falls under the artist to be aware of that for IRS Tax reporting purposes and isn't your fault if they don't do what they need to in the event of that.

Edit: Oh, the caveat to this is that the rules change if there's a large amount of "Tips" being made/earned by one individual, but you won't get in trouble unless you are the largest source of these tips for a single person.

Edited May 15, 2019 by Arkas

[Alkraas]

I've given tips this way for artists inside the EU. For artists outside the EU, I prefer to use Ko-Fi, because Paypal charges me, the sender, extra for sending per Friends and Family to people who do not reside in the EU.

Sending tips per Friends and Family is fine! You do not expect anything in return and it counts as a donation/gift!

[theodor]

Sending via f&f now charges me over half of the transaction amount, sometimes more. I tried to send $5, and it wanted me to pay $10 total. I usually use ko-fi for tips. Or if its an artist I know and trust, include it ahead of time.