Kickstarter and the Democratization Of Asking For Money

Several friends of mine have created Kickstarter to raise funds for their projects, and I have support them either by spreading the word and/or donating money. I have also consulted an artist who needed help with promotion for their Kickstarter. Recently celebrities like Zach Braff and Spike Lee have done so in order to fund films they want to make. They look to their fan base instead studios for support.

I am not sure if it is good for people who have the means and wealth to do a  Kickstarter. People may judge, but it has led to the democratization of crowdfunding.  Before Kickstarter and other crowdfunding sites like Indiegogo, raising money used to relegated to charitable nonprofits or for companies going public seeking capital.

The current rise in crowdfunding for business has yielded concerns about the accounting treatment of those funds. Is it a gift? Is it income?  It is unearned revenue?! Kickstarter used a reward based model of crowdfunding, where  the backer receives a form of reward which may be of little value, and can even be akin to a donation. However, the backers cannot deduct the donation unless the Kickstarter is created by a nonprofit with a (501)c3 status.

Recently I moved from Brooklyn to Atlanta, and I updated my setting on Kickstarter.  Curious about the local Atlantans who have projects on Kickstarters, I found five of interest. I love perusing the projects so now I know about some of the creative people who live near me.