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.

Cupcakes For A Cause

Practicing for Nana’s 90th
Originally uploaded by Busy Baking.

The Fourth Annual Cupcakes For A Cause is October 15 through October 21. This is a fun weeklong event in which participating bakeries and stores across the US will sell specially decorated cupcakes and donate a portion of the proceeds from their sale to CancerCare for Kids.

In addition, companies and individuals are also invited to sponsor bake sales to help raise funds for the program.

In New York, Crumbs Bakeshop will be the “spokesbakery”, and check out the
Cupcakes Take The Cake Blog that I run with my friends, Allison and Rachel.

Bookkeeping Tip: If you make donations to this or any other charity, make payment via credit or debit card or get a receipt if it a cash donation.