Amanda’s successful Kickstarter will inevitably inspire others to initiate crowd funding campaigns, artists can avoid future pitfalls by implementing the following techniques:
1. Treat It Like a Contract. Successful crowdfunding is a positive result from a healthy artist/fan relationship, but the monetary exchange is much more complex than a simple donation.
2. Assure the Proper Entity. Tax implications emerge when raising money.
3. Transparency Is Key. A compelling aspect of Amanda’s campaign was the fact she remained extremely transparent throughout the fundraising process – constantly identifying where funds would be allocated.
Tags: amanda-palmer, crowdfunding, crowdsource, crowdsourced, crowdsourcing, kickstarter, law, tax
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Martin Frascogna: 3 Legal Tips for Amanda Palmer-style crowdfunding success
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