Crowd funding provides a way to channel money to support people, projects or causes.
For example, a gourmet chef in the Maritimes might pledge $20 to Tina Windsor’s “When Pigs Fly” project, simply because he likes the concept of a well-seasoned smoked ham steak prepared without preservatives. He may never visit Tofino to taste that steak, but he supports the concept.
Crowd funding organizations connect dollars from interested supporters to people needing funds for small businesses, environmental projects, health care, artisans, crafters and others who need outside funding.
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Many of the pledge projects solicit funds to assist people with cancer or other major health problems. Organizers do not allow blatant for-profit-in-the-pocket projects. Crowd funding groups have names such as GoFundMe, Indiegogo, CauseVox, Giveffect and GiveMeaning.
Money from crowd funding is not a loan. It’s an outright grant from one person who has a commitment to a certain cause, to another person who is turning that same commitment into action. Contributions range from $5 to hundreds of thousands of dollars.
The strings attached to virtually all crowd funding websites are similar, stating that the contributed money must be used as stipulated on the application. Most groups have tight accounting criteria.
