STRAIGHT ABOUT ACCOUNTING
Crowdfunding is a form of financing a project through the contributions of a community. Interested individuals can contribute any amount through an online crowdfunding platform, and the total of these contributions will be used to fund the project. The organizer of the campaign can be either an individual or an organization, and various types of projects, such as cultural, business, or social initiatives, can be funded through crowdfunding. Investors, in return for their contributions, may receive different forms of rewards or returns, depending on the type of crowdfunding.
There are several types of crowdfunding:
Donation-based: Most commonly used for charitable campaigns, where investors do not receive any returns for their contributions.
Loan-based: In this type, the organizer commits to repay the contributed amounts with predetermined interest, usually lower than traditional bank loans.
Equity-based: Used to finance innovative start-ups in the form of a company. If the project succeeds, investors may receive shares in the company, securities, or dividend rights.
Reward-based: Based on a reward system, where supporters of the project receive rewards from the organizer, which may not necessarily be equivalent to their contributions. These rewards could be gadgets, promotion of sponsor logos, etc.
Choosing the most suitable type of crowdfunding for a particular project requires careful analysis, which can be assisted by professionals from Kurdynowski Accounting Office in Bydgoszcz. Crowdfunding is undoubtedly an alternative to traditional external sources of capital and presents a lower financial risk compared to loans or credits, which can be difficult for inexperienced entrepreneurs to obtain. To succeed in crowdfunding, it is essential to build and engage a community willing to invest in the project. Promoting the crowdfunding campaign actively through posters, videos, and other promotional means can help attract investors.
When choosing a crowdfunding platform, consider the costs of conducting the campaign and the platform's commission fees.
Operating in the field of crowdfunding for business projects is becoming more popular in Poland. A positive factor is the increased protection for shareholders and the raised crowdfunding limit from November 9, 2023, to 5,000,000 euros due to the signing of the law on crowdfunding for business projects and assistance to borrowers on July 7, 2022. However, it also brings new requirements, such as the obligation for crowdfunding service providers to keep records on commercial books and the obligation to have financial statements audited by an auditor, regardless of the revenue size.
For more information, you can contact Sara Joppek from Kurdynowski Accounting Office in Bydgoszcz via email: firstname.lastname@example.org, or phone: 52 321 321 5.
Author: Sara Joppek / Kurdynowski Accounting Office in Bydgoszcz
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