Legal Question in Tax Law in Virginia

My understanding of how this is supposed to work is that you put the Extra Life url on your Twitch feed and that's how users donate to charity. It seems to me that's not what you're doing. What you're thinking about doing, the question you asked, is not the way to go about this. You and your friends would have to form a not-for-profit company, and the Twitch stream is one of the ways your new not-for-profit companies is raising money. It's a giant can of worms you're opening, but if enough money is involved and raising money for charity is your ambition for the future, then of course it can be done. First you have to form the not-for-profit corporation with your state, and then apply for tax exempt status from the IRS, which is Form 1023. The instructions to Form 1023 on the IRS website give detailed information on what's needed.

Good luck.