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!

How to Get $150 From Me

I coach clients on how to get their Crowd funding project up and running and keep it moving to reach their goals.

I make the learning curve shorter, I know what they need to focus on and what are simply distractions.

I keep them on task while the campaign is running so that they don’t “let life get in the way”

I help them position their crowd funding so they have the best chance of getting all the money.

I charge for these services and if you refer a private client, I give $150 referral fee.

It’s as simple as that.

Dr. Letitia Wright

909 626 3835

How FoodCycle eco café raised $7,942 in a Week

 

FoodCycle is an Eco Cafe in London which uses food that

would have gone to a landfill to create a “pay what you can” lunch.

They are only open on Fridays.

This money will help them stay open for another year.

They used the Peoplefun.it platform.

They used Twitter and had some celebrities support it.

274 people backed this project.

They also used Facebook, Google+, Tumbler, and Linked in

This was a very short project. No doubt they were clear on

their audience and did a lot of pre-planning.

Thom from Channel 4’s Three Hungry Boys visited the café to show their support by

making a video.

Daniel Turi, the FoodCycle Café Co-ordinator, said: “It’s amazing how people came together through Twitter over just five days and raised enough money to keep the café going for another year.

“It shows the importance of the café in the community and we’re now really looking forward to doing more and more in the future.”

Ready to start your project? Give yourself the best chance of success with my coaching!

Call Dr. Wright at 909 626 3835 and let’s talk about your project and see if we can work together.

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