1% isn't much when you see how the bitcoin markets constantly fluctuate. The price for a bitcoin is very unstable, and if I pay out in dollars then I'm taking a considerable risk. Best bet is probably to look at how volatile the markets have been and try to find some semi-safe markup. Two possible places to collect: require donation to activate paypal payout + use the latest market exchange rate minus a percentage.
FYI, eclipse pool charges 7.5% for paypal payouts.
As for volatility; you could protect yourself by selling the coins before handing out the paypal dollars. Youd give a guestimate how much the miner would get in dollar, but you only know for sure after you sold the bitcoins on mtgox. Since we are talking very small amounts here in all likelihood (no newbie is going to accumulate 100BTC from mining and have them paid with god knows what fee), the estimate shouldnt be far from the actual value.
I wouldnt pair this to donations though. This ought to be a revenue stream for you by itself, it doesnt make sense to limit your potential profit that way. Moreover, someone could just turn on donations when he wants to be paid out (and yeah, you could avoid that by only allowing blocks to be paid out when donations where set, but it would seem a lot of pointless work).
BTW, once you have this working, consider expanding the service to payout any bitcoins. So allow people to send BTCs to their bitminter account and sell them through paypal. Though you will want to look in to potential legal ramifications, Im not sure of those. If its doable, it would be a good way to make money and get traffic to your site.
I don't think miners would want to pay $5 per SMS. But probably much more than the price I'd have to pay to send one.
This is probably best done not by donation but a feature you activate and it works as long as it can subtract the necessary sum from your balance each time a message is triggered. With a selectable limit for max messages per day.
Id do it slightly differently. I wouldnt make it appear as if the miner is paying for his sms messages himself from a savings account, even though to some extend, he obviously will. Enable it for anyone who donates x%, and do keep track of how many SMS he gets and how much the donation brings in, but give everyone some credit, so that even a smallish miner who activates the option gets a message 20 minutes later if a block is solved; even if he hasnt accumulated enough donations yet to "pay for it". Otherwise it may seem as if he enabled an option that costs him money and he is not getting anything for it.
Set an absolute limit for everyone (no point in sending out dozens of sms to anyone) and after 24 or 48 hours start comparing donations with costs and calculate a max number of daily SMS messages the miner is entitled to depending on his hash rate.
Instant payment and paying invalid blocks is really the same feature. I was planning to activate that at perhaps 3% donation. Donate enough BTC and you get it on BTC blocks. Donate enough NMC and it works on NMC blocks.
Again, I would do this differently. Many newbies and non newbies havent got a clue what to do with their namecoins. Use that to your advantage. One option could be donating NMCs to the pool. Im pretty sure that would be popular. I got about 100NMC in my bitminter account now, their yours once I have the option to donate them.I dont think Im alone here.
Interesting. Maybe instead of different perks activating at different donation levels, you would "buy" perks with your donations. Each perk would require X percent donation, and you can freely pick the ones you prefer. And then there is the VIP package that gives you all features and costs less in donation than all the individual features added together.
K.I.S.S.Id offer no more than 2 or 3 donation levels max. One of them being "donate namecoins".