gamechap video says that Paying money for virtual items is illegal

By server sales, they mean by using the money from donations torward your own personal needs. As long as you use the donations to their intended purposes, you have nothing to worry about.

 

How else do you expect servers to make money? I mean, I don't have a rank yet and I want one badly. ;-;

 

Technically, the server isn't making money. Donations mean that it's a non-profit organization. No money is earned.

 

ToS related laws apply anywhere, any country. If they wouldn't, people could just move to a country in which some company's ToS isn't valid and then abuse it. It doesn't work that way.
Not, at, all. There is a clear line. DLCs are game extensions officially made by the ones that own said game. iTunes gets permission to sell the songs from the respective owners and pays these owners a part of the money they earn. Same thing as iTunes applies to Steam, but with games.
Also, the post you quoted is kind of the opposite of the point you're trying to defend.

If you get goods in return of sending money, it isn't considered donating, it's making a purchase.
Unless, of course, it is a "thank you" kind of thing. For example, you regularly donate to some charity, and they send you a "thank you!" letter.

 

It is a donation. The perks are a thank you for donating as there is an option to not give anything to the donator.

 

Actually, the server would be considered a not-for-profit organization. This meaning that there is a goal to reach and anything else can be pocketed. nonprofit=no money is kept and it is a continual funding project.

EDIT: Sorry for double posting

 

The thing is, we are not paying for the items. We are donating, and they simply give us these perks as a token of appreciation.

Since that is not buying, it is legal.

 

@Everyone saying you're donating to the server.

You aren't. There's a fine line between donating and purchasing. When you donate, you're only doing it for the rewards. If there were no rewards, no where near as many people would donate, would they?

Quoting from Wikipedia: "Donations are given without return consideration.", you are expecting a return (reward) of perks when you "donate" meaning you aren't donating. You're purchasing from the server...

EDIT: Again each way, the money is used on the server which may still be violating the ToS as you're making profit, but choosing to spend it on the server like a good server owner, and fans of servers are okay with that.

 

Its not illeagal, is violates the Tos of minecraft and can shut it down. Or remove their accounts. And other games have different tos so it changes.

 

They never said its illegal! It just is against the terms of use for minecraft so the server should be shut down.

 

...Along with every other server that is available to the public...