How does it work? Although the rules differ from site to site, generally people (or businesses or charities) pitch an idea, set a fundraising goal and set a deadline for raising funds. Potential patrons can review the pitches and decide if there are any they’d like to support. On most crowdfunding sites, people are not investing in the project or business; rather, they are funding it. They are rewarded if the project comes to fruition, but don’t end up owning any part of the business or project. You start with a pitch: you describe your project, specify what rewards patrons will receive if the fundraising is successful and create a funding goal and a timeline. If you don’t reach your funding goal by the deadline, no money changes hands. As Kickstarter says, this “protects everyone involved. Creators aren’t expected to develop their project without necessary funds, and it allows anyone to test concepts without risk.” Pledges are made with a credit card; if you’re backing a project, your card won’t be charged until the project is successfully funded.
Posted on: Thu, 10 Jul 2014 11:14:48 +0000
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