For several years I have been involved in an online gaming project based on a popular PC game. The work involves using a special toolset provided by the game developers, for the community to create special modules for others to play online.

However due to the technical nature of the game it requires good quality hardware and fast reliable internet connections on which to host the servers. While not cheap we have managed to get a good deal and our annual costs, hardware breakdowns notwithstanding, total under £1,000 per year to cover hosting in a professinal standard data centre.

Part of the EULA states very clearly that no profit is to be made from the toolset or by running servers.

Up to this point the previous administrators simply had a 'Donate' option where people can donate by PayPal or directly to the host by cheques, bank transfers and so on. Donations never have and never will afford anyone any special priveliges when it comes to playing the game, in accordance with the EULA. They are simlpy contributing some money to ensure the project continues, and hopefully even improves.

However having recently taken over management of the project I would like to know the legal view of such a project. It would never have got this far without the contributions of the community, and I doubt the previous management would have bothered at all had they been presented with a lot of legal 'red tape'. Likely, I won't either if it turns out to be necessary.

Is the way we have been doing things legal? Is there a better way to cheaply and easily safeguard myself while maintaining the project and improving the service I provide the community?

Any advice or links to helpful sites would be much appreciated.