Book Project Cracks $1 Million Dollars By Crowd Funding

The third project get over $1 million dollars in financial support is also the first book to do so. Rich Burlew wanted to

raise $57,500 to reprint an out of print book from his “Order of the Stick” webcomic. He was able to get that amount in only 2 days. The money continued to come up so that the final amount was $1,254,120.00

Crowd Funding has been likened to the PBS or NPR drives for money for a project. These supporters get premium gifts for the amounts of money that they give. Each crowd funding site is different and has different rules. As the money came in, Burlew added to the rewards, in the end there were 64 different rewards. He was able to make adjustments to the campaign as it grew. When one goal was met, he set a new goal.  Almost 15,000 people gave and over 25,000 books were sold. He fan base drove this campaign over the top. He used that leverage to reach out to additional audiences as the amounts of money came in

Related articles

• Crowd Funding a Dance TV Show (wrightplacetv.com)

Taxes and Crowd Funding

Everyone always asks how is the money from crowd funding taxed. The answer is always- it depends. I know you hate that. I hate that too. However, everyone’s situation is different. First of all, you need to let your tax professional know you have gotten funds from crowd funding. You must explain to that person what you are doing and how you are using the money.

If you are a non-profit, the tax consequences will be much different than if you are a for-profit business. If you have actually started a business, the tax consequences will be different than if you do not own any type of business. You have to decide if it is part of your personal taxes or your business taxes. All of this can be done BEFORE you raise money using crowd funding.

In the near future, there will be plenty of tax professionals who specialize in crowd funding situations. Right now you may need to educate them on what you did and exactly how you did it. Have all your records available for them. Show them which websites you used. Have copies of your emails and any offline materials you used to assist them in becoming familiar with crowd funding. Because this is such a new area you have to give them everything they need to set up your taxes correctly. There is nothing wrong with paying what you owe, you just don’t want to pay more than you owe. It takes a forward thinking tax professional to make it work for you.

Here are some No-Cost Workshops on the topic of Crowd Funding: Click Here!

Mistaking Value for the Price

This is one of my favorite Paul Simon Songs

The lyrics are so touching:

“Life is what you make of it, so beautiful, so what”

“Ain’t it strange that when we’re ignorant we seek out bad advice”

“Mistaking Value for the Price”

“Play games with  Time and Love like a pair of rolling dice”

I have friends experiencing some extremely tough times right now.

Stress, illness and challenges at level they have never seen before.

I don’t want to put anyone’s private details out there, I just want to say

I hear you, I’m praying for you, I feel your pain too and it really will get better soon.

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