Crowdfunding
Crowdfunding is collaboration of people who voluntarily donate their money or other resources to support other people, organizations, or projects. It can serve a variety of purposes: disaster relief, fan support, political campaign support, funding start-ups and small businesses, creating free software, generating profit from joint investments, etc. Compared to fundraising by subscription, known to mankind for a long time, crowdfunding is easier, more efficient and has greater reach and potential through the use of specialized Internet platforms available from anywhere in the world.
Anyone can participate in crowdfunding and support the creator. The introduction of the practice is far ahead of the development of legislative and tax instruments in this area, which are necessary for the full-scale implementation of the practice into the economic system.
Anyone can participate in crowdfunding and support the creator. The introduction of the practice is far ahead of the development of legislative and tax instruments in this area, which are necessary for the full-scale implementation of the practice into the economic system.
Universal Problem
You have to work to survive, but most jobs are boring, hard, and time spent on them cannot be spent on activities that are more meaningful to you and potentially more beneficial to communities.
Solution
Crowdfunding: any project, activity or initiative can receive direct funding from like-minded people around the world.
Target Image
In the future, each person will do what he\she is interested in and it will support him. In this way, a more equitable distribution of wealth is achieved, and meaningful initiatives are supported.
Experiment Framework
Any author, project participant, experimenter, inventor publishes a description of his project and bank account data on the digital aggregator platform . The author describes the development stepsof the project (business model and timeline), the possibilities of its implementation depending on the amount of funding received ("we collect 75% of the required amount - we will do X, 100% - we will do Y"). Author may offer bonuses to the sponsors depending on the volume of donation.
Crowdfunding differs from donation in that the donation is targeted; however, donors generally do not expect meaningful reward or return on their investment. As a rule, if the project does not collect the required amount, donations are returned to sponsors in full.
According to the legislation of the Russian Federation, an individual who receives income from crowdfunding, does not pay taxes on the money, and the donor cannot receive a tax deduction.
Crowdfunding differs from donation in that the donation is targeted; however, donors generally do not expect meaningful reward or return on their investment. As a rule, if the project does not collect the required amount, donations are returned to sponsors in full.
According to the legislation of the Russian Federation, an individual who receives income from crowdfunding, does not pay taxes on the money, and the donor cannot receive a tax deduction.
Tools and Technologies
- Crowdfunding online platforms
- Social media to highlight initiatives
- Classic banking instruments (transfers)
- "Pre-sale", exchange for goods / services / bonuses, donation of money/
Scaling Plans
In theory, it is not limited in scale, but it faces a number of difficulties in practice.
On the one hand, the problems of this financing method are associated with almost complete absence of restrictions on the donor's financial behavior and an insignificant level of control over the behavior of the project initiator. A significant amount can be collected for prank, while social projects, that have not received proper advertising, may be left without support.
Lack of communication between the donor and the author of the project and (sometimes natural) mutual mistrust of unfamiliar people on the Internet can slow down the growth of crowdfunding: with a high level of fraud, there are not enough regulatory tools that would ensure the project team fulfills its obligations.
On the one hand, the problems of this financing method are associated with almost complete absence of restrictions on the donor's financial behavior and an insignificant level of control over the behavior of the project initiator. A significant amount can be collected for prank, while social projects, that have not received proper advertising, may be left without support.
Lack of communication between the donor and the author of the project and (sometimes natural) mutual mistrust of unfamiliar people on the Internet can slow down the growth of crowdfunding: with a high level of fraud, there are not enough regulatory tools that would ensure the project team fulfills its obligations.
Standards and Values
- Financial transparency
- Reputation and integrity
- Opportunity to influence directly the development of projects that are significant to donor
Community
- Kickstarter is a platform that helps to bring life to independent creative projects. It connects creators with communities who are willing to fund the project and become a direct part of it.
- Patreon is a platform on which developers of creative works can distribute fruits of their labor and receive funding directly from their fans on a regular basis or for each individual work.
- Causes is a website that helps you quickly and easily understand the laws under consideration by the US Congress, optimizing the process of connecting people and legislators so that everyone's voice is heard.
- Planeta.ru is a crowdfunding platform for attracting collective funding for the development of creative, scientific, social, entrepreneurial and other projects.
What you could do in the Kruzhok for joining the approach:
- Learn to pitch yourself: analyze the audience (potential users), calculate what they are interested in, learn how to align your work with the interests and requests of other people, learn how to shoot videos and write intelligible descriptions of your product.
- Participate in financial support of like-minded initiatives.
- Create your own initiative on a crowdfunding platform.
