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Author's FAQ

Everything you need to know to prepare, manage and obtain your crowdfunding campaign.

Plan your campaign

  • Spreading the word

    This is one of the key aspects of all successful campaigns.

    • Encourage your friends and family to make a pledge in the first few days to kickstart the campaign, create a buzz around the project and set a good fundraising pace.
    • Before getting your campaign under way, you should be clear about how you're going to focus it, what channels you're going to use (mailing lists, Facebook, Twitter, specialist blogs that will host your widget and publish posts, contacting the local press...) and how you're going to reach people interested in your project.
    • During the campaign, take time every day to interact with potential patrons, create new content and spread the word about the project. You might find it useful to create a timetable of promotional actions, both online and offline.
    • Think very carefully about which channels you plan to use to spread the word. Don't set up new accounts on social networks or launch new blogs just to promote the campaign. You won't get many followers, which makes them a waste of time and effort. Use existing proven channels and ask friends with lots of followers to help spread the word.
    • Make it personal: get everyone in the team/organisation/group/cast/crew etc involved to rally round the 40-day campaign. Don’t just use a production company's official account. You'll find the personal touch far more effective.
    • Finally, get anyone and everyone interested in your project to do everything they can to spread the word. A well-connected patron eager to help bring your project to life is worth their weight in gold.

  • Get your PayPal account ready
    • If you want to enable the PayPal payment method, you need to set up a PayPal account where patrons can make their pledges. You need to carry out these four steps on your PayPal account to ensure your patrons' pledges get processed smoothly!

      1. Confirm your email
      2. Verify your account
      3. Lift limits
      4. If your account was opened outside the eurozone, you need to set it up to receive payments in euros.

      Remember, PayPal generally charges a 3.4% fee plus a fixed charge of €0.35 per transaction. You can find more details of PayPal’s commissions here. If you need help setting up your PayPal account, call or email PayPal Customer Support. They usually solve minor issues quickly.

    • 1. How to confirm your email
      • Log on to your PayPal account and click ‘Confirm email’.
      • In the ‘Email’ field select ‘Edit’.
      • Click ‘Confirm this email’. PayPal will send an email to this address.
      • Open the email, click the link to confirm your email and that’s that!
    • 2. How to verify your PayPal account

      To verify your email account you need to link it to a bank account or credit or debit card.

      • In the left-hand column, click ‘See how much you can send with PayPal’.
      • Choose either ‘Verify my bank account’ or ‘Link and confirm my debit or credit card’; the two options are equivalent.
      • Enter your bank or card details.
      • Once you’ve linked your bank account or card, PayPal will charge you a small amount (which will be returned once you’ve been verified) to make sure you are the owner. This transaction will appear on your bank or card statement with the concept PAYPAL and a 4-digit code.
      • When you can see this code (usually after 1 or 2 days), you should enter it in the ‘Bank accounts and cards’ or ‘See how much you can send with PayPal’ section.
      • Your bank account or card will now be verified. Hooray!
    • 3. Lift limits

      In accordance with EU regulations, PayPal accounts can only receive up to €2,500. You can easily lift this limit online by providing the required documentation, which varies depending on whether you are a private consumer, freelancer, company, charity or government body.

      • In the ‘See how much you can send with PayPal’ section select which kind of user you are and follow the instructions to provide the required documentation.
      • Verification can take a few days, but if you see things are going slowly, you can call PayPal Customer Support to help speed things up.
    • 4. If your account was opened outside the eurozone

      If your account was opened outside the eurozone, you need to set it up to receive payments in euros:

      • Log in to your PayPal account and click PayPal balance. Click Manage currencies.
      • Selecteuro as the new currency and click Add currency. You’re all done!

Plan your page

  • Cover image

    Choose a high-quality, eye-catching image that captures what your project is all about (maximum 1.5MB).

    • Set the resolution to 940x530 pixels
    • Bear in mind that the cover image is the face of your campaign. It's what other people will see when someone shares the campaign link on Facebook and Twitter and its thumbnail will appear on projects on the homepage, browsers or the widgets people post on their webpages or blogs.
  • Video

    This is another key part to all successful campaigns. You need to make a good introductory video:

    • Present the project to your audience with a short, imaginative video.
    • You only need 1 or 1½ minutes to introduce your project and get people hooked.
    • Make sure it's good quality and be as imaginative as possible: you need to get across what your projects is all about.
    • You should upload your video to Youtube.
  • Rewards
    • In this section you can check that the rewards you offer are suited to your project and in the correct format, besides getting tips on improving the presentation of your page.
    • You can also find solutions for technical issues related to the editing of your page, such as how to have the page in different languages.
    • You should then head for the “Prepare your campaign” section to prepare the most important part before publication, the circulation of your Verkami.
    • Make changes to and improve your rewards

      Crowdfunding lets creators raise the funding they need to bring their projects to life thanks to pledges from their family, circles of friends, groups...

      They do so not only to support you, but also to consume culture in a different way and enjoy the result of what they're helping bring to life.

      You should look over your rewards and make sure you've remembered the following:

      • No intermediaries = better prices

        You're going to be working directly with your backers without the need for any intermediaries. This means you can offer them rewards at the same price they'd find in the shops or less, leaving you to plough the difference into your project.

      • Crowdfunding isn't donating

        Your rewards shouldn't appeal to people's disinterested support: they should be part of a two-way exchange.

      • Reward loyalty

        Your patrons are your loyalest followers. It's not about seeing how much you can get out of them, but rewarding their loyalty with low prices and unique products and experiences. Don't forget that they're making the effort to support an idea long before it actually gets off the ground. Their backing at this early stage deserves a proper reward.

      • The range of rewards doesn't need to be merely accumulative

        You can add additional or alternative rewards without affecting existing ones.

      • A picture paints a thousand words

        Use any pictures, models, designs or photos of the rewards you have in the description. If you don't have any, make some! A horizontal montage is best to avoid the description running too far down the page. Pictures are vital if you are offering T-shirts.

      • They should follow the Verkami format
    • Ideas for rewards
      • Take a look at similar projects in the same category or our Reward Gallery for inspiration.
      • Offer a pack for organisations, associations, groups, companies, etc.

        They might well be interested in presentations, private concerts, premieres, etc. Make sure they know they have this option of supporting you on Verkami.

      • If your project is Performing Arts

        You envisage that your show will be a success, but before it you have some production costs to deal with and you address the potential audience so that it can help you to cover them. How can you thank them for helping you onto the stage?

        Of course, acknowledgements in the hand programme and some tickets for the preview, the premiere or any other performance are rewards worth providing (and if they’re cheaper than at the box office and in the front row, so much the better), but what else? Here are some ideas. You can modify them as much as you like.

        For any level of reward:
        To remember

        • A poster, postcard or photo with the artists, with autographs and a dedication.
        • Audiovisual recording of the performance.
        • Script of the work.
        • Sketches of the costumes.
        • Plans of the stage design.
        • Download or CD with the musical themes.
        • An object related to the work in some way.
        • A ticket for the acquisition of an object which appears in the work (stage design, costumes, props, etc.) when the season ends.

        For rewards between €30-€200:
        Your home is his home... if anyone has a home

        • Attendance at a rehearsal.
        • Special performance for sponsors.
        • Talk with the actors and/or director.
        • Refreshments, toast or dinner with the team.
        • Master class with the director, vocal director, choreographer, dressmaker, make-up artist, technician, etc.
        • Guided tour backstage.
        • Characterization of one of the actors.
        • Participation in the work as a character, extra or chorus member.
      • If your project is a music project

        You've got a music project and want to reward your followers in the best possible way. Any ideas? An advance download of a CD, a signed CD, a ticket to a presentation concert or a list of acknowledgements in the booklet are just some of the commonest and most appreciated rewards. But there are lots of other things you can offer your eager fans that they'll only be able to get their hands on if they make a pledge, which should give your campaign a huge boost. Here are some ideas; you can pick and mix as you like.

        For rewards between €5 and €50:
        Made with love.

        • Handmade artwork or text.
        • Handwritten lyrics or scores.
        • Personalised ringtone or voice message.
        • Home demo of a song.

        For rewards between €55 and €500:
        Spend a bit of time.

        • Handwritten account or diary of studio sessions.
        • Masterclass.
        • Private concert or Skype concert.
        • Interview.
        • Personalised song or cover.
        • Co-write and record a song with your patron.
        • Offer a date, walk or museum visit.

        For any level of reward:
        Sharing is caring.

        • Original draft of lyrics with corrections and comments.
        • Concert set list.
        • Invitation to soundcheck or backstage.
        • Invitation to come up on stage.
        • Invitation to recording studio.
        • A guitar pick, string or drumsticks.
        • Signed instrument.
      • If your project is Audiovisual

        The number of festivals, cycles, cinemas, devices and other channels where your short film, feature film, documentary, series or video clip will be seen also depends on the people who will help you to construct the basis of the story you want to tell on the screens.

        A special acknowledgement for your sponsors consists of offering them an online viewing or download of the film (and if it is before anyone else, so much the better), the physical editing on DVD or the inclusion of their names in the credit titles. But there are a lot more things which will make them unable to suppress their desire to contribute:

        Film memorabilia

        • Exclusive extra content for sponsors.
        • Log of the filming or making-of on the whole process.
        • Official dedicated and autographed poster.
        • Photograph or postcard of a frame from the film.
        • Original script.
        • Download or CD of the soundtrack.
        • Element of the props or costumes used.

        The dream of many mortals: being in a film

        • Invitation to the filming.
        • Invitation to the end-of-filming party.
        • Invitation to the preview or premiere.
        • Appearance as an extra, a special appearance, etc.
        • Dinner with the director, the actors or the full team.

        Friends are welcome

        • Inclusion of the logo of the institution or entity in the credits as an “associate producer”.
    • Reward format
      • Separate the different parts of each reward with a "+" sign followed by a capital letter.
      • If the rewards are accumulative, summarise the parts that are repeated.
      • If you create a pack, give it a name in bold capitals: VIP PACK, FOR ASSOCIATIONS
      • For example:
        • €20
          Your name will appear in the music video credits
          + A dedicated CD of the band's new album "Andergraun".
        • €35 ANDERGRAUN PACK
          Name in the credits
          + Dedicated "Andergraun" CD
          + "Andergraun Division" T-shirt!
          *Shipping costs included*
  • Campaign description
    • Make changes to and improve your description
      • Remember you're addressing your backers and your community. Talk to them directly, seduce them, make them feel part of your project. Tell an engaging backstory to help your community relate to your project and want to get involved.
      • The key point, which should come right at the start of the description, is to say what you want to fund with this crowdfunding campaign: what do you want to do? You can then give any additional details about the project and campaign.
      • Don't forget to say what you'll spend the money on.
      • You should be thorough but succinct. Too much information is overwhelming. You can also add links to other websites for anyone looking for more information and don't forget to keep updating the blog.
      • You can also add an eye-catching image of a reward in the description.
      • At the end you can add a section with links to your Facebook page, Twitter account, Bandcamp page or personal page.
      • Get an idea of how your page is coming along by clicking "Save changes" and then the "Project page" link at the top of the page.
    • Format
      • Divide the text into paragraphs with clear headings. Use 1 hashtag to add a new title: # Title 1
      • Use short paragraphs with plenty of line breaks. Highlight key concepts and words in bold to make them stand out.
      • You can use bold and italics in the text editor in your back office, as well as inserting hyperlinks and images.
      • You can also insert Soundcloud and Bandcamp embeds.
  • Different languages
    • If you think it would be a good idea to display your project in different languages, you can translate all the information and rewards for your campaign into the following languages: Spanish, English, Catalan, Galician, Basque, Italian, French, German and any other extra language.
    • Before translating your project into other languages, we suggest you work with us on a definitive version in your own language. Once we've given it the ok, you can translate it into as many languages as you like.
    • Once you've translated the project into another language, any subsequent changes you make to the original text should also be made to the translations.
    • How are translations displayed on Verkami?

      If you use more than one language, each text you've written will appear in its corresponding language.

      Any pages in languages you haven't chosen will simply be displayed in the default language for your project.

      The other language pages will be displayed as follows:

      • If the Catalan, Galician or Basque pages don't have a translation, they will display the Spanish text.
      • If the Italian page doesn't have a translation, it will display the English text
      • If your main language is Spanish and you also add an English translation, users whose main language is Spanish will see it displayed in Spanish and users whose main language is English will see it displayed in English. Users whose main language is Catalan, Galician or Basque will see it displayed in Spanish and those whose main language is Italian or other languages will see it displayed in English.
    • How can I translate my project into different languages?
      1. Select "Change available languages" on the "You're editing data in" dropdown menu and add any languages you want to use.
      2. You'll see the added languages on the same dropdown menu. Choose the one you want to translate into and fill in the different fields in this language. Don't forget to save it when you've filled in the fields.
      3. Remember to translate the rewards as well.
    • Can I translate my page once it's been published?

      If you want to translate your page, you should do so before publishing the campaign, because afterwards you won't be able to edit the rewards.

    • Share my project in different languages

      For each language you add and translate into, you'll have a link to share your project directly in the language in question.

  • Information on the project creator
    • The information on the project creator is displayed right underneath the rewards column on your project page.
    • It contains the name of the project creator, their avatar, a few words on who they are and a link to their webpage.
    • You can make changes to all this information from your user page (the page which appears when you log in to Verkami or by clicking your username on the grey bar at the top).
    • Some hints:
      • For the project creator name: Don't use pseudonyms. Use the name people know you by.
      • Upload a reassuring image of you or your collective.
      • Bear in mind that "Your Profile in a Few Words" cannot be translated into different languages.
      • Include a suitable link to your webpage so people can find out more about who you are and what you've done.

During the campaign

  • Communicating with your patrons
    • Make your project appealing and engaging and show how keen and committed you are by communicating with your patrons.

    • Using the project blog

      You can start to post on your blog as soon as your project has been published.

      Every time you post something on your blog, your patrons will receive an email. An active blog also makes all those who take a look at the project feel involved with the campaign, which means they're more likely to make a pledge.

      Try to illustrate each post with an image. A post with a picture is far more likely to be read.

    • Via email

      To communicate with your patrons via email, go to your back office and underneath the fundraising bar you'll find a link that says "Contact your # patrons"

      Clicking on this link takes you to your patron management page. From here you can email all your patrons or just certain patrons with the same reward. Simply click at the bottom where it says "Send email" and select the option you want. (If you hover the cursor over a patron, you can send them a personalised email).

      If they reply to your email, their reply will go straight to the email address you're using to manage your project.

    • FAQ, questions for the author and comments
      • FAQ about the project: This is the section which appears right after the text of the description of your project. Use this section to give public replies to recurring questions sent by your sponsors and to resolve specific queries generated by the project. You can edit this section via the project Dashboard in the Add a FAQsection.
      • Questions for the author: This is the penultimate section of the end of the public page of your project and it says: Do you have any other queries or questions? Ask the author. When a user sends you a question via this section you will receive it at the email address with which you manage the project. When you receive a question by email, try to reply as soon as possible. Bear in mind that it might be someone interested in being a sponsor of your project! To reply to the user, simply answer the email you will receive with the question. If it is a recurring question or an important clarification concerning the project, once you have replied to the user you can add a new entry in the project’s FAQ section.
      • Comments: This is the final section of the public page of your project and it is where the comments of encouragement from your sponsors can be found :) Only users who have contributed to the project can post a comment. You can reply to these messages by posting a comment yourself in the comments section of the public page of your project. The comments you post in this section will be identified with a small red label saying Author. Before posting the comment make sure you have logged into Verkami with the username with which you manage the project.
  • Spreading the word

    Projects get off the ground thanks to your closest online and offline circles, fans, friends, acquaintances, etc. Encourage your nearest and dearest to get involved right from the start and make a pledge in the first few days to kickstart the campaign, create a buzz around the project and set a good fundraising pace. If you've planned your project well and they like it, they'll be excellent ambassadors to help spread the word. It's key to kickstart the project and get the ball rolling so it can pick up speed.

    • As well as spreading the word about your project among family, friends, acquaintances, Facebook, Twitter, etc. don't forget about specialist circles, blogs and any other communities you belong to.
    • Share your project in different languages: For each language you add and translate into you'll get a link for sharing your project directly in that language.
  • I have already achieved my objective and I have a few campaign days left. Consider a second objective!

    The goal of creating a second objective to improve on or expand the current rewards is for all the sponsors you have so far to get involved in the circulation of the project to raise more money. If more is raised, they will receive something better or something more for the same amount they have already contributed.

    For example, you can now make your book hardback and 15 pages longer, you can add some sheets onto the vinyl or the sponsors can receive an exclusive making-of for the film.

    Review your budget and what the improvement proposed to establish the new objective will entail, with a good margin for each contribution if you succeed.

    Remember that, having achieved the campaign objective, anything else you collect from now until the last day of campaign is secured.
    So, if you don’t achieve your second objective it doesn’t matter, you won’t have the obligation to deliver what this expansion entails to the sponsors! :)

    Announce the new objective on the project blog, so that all the sponsors receive a notification, on the campaign page and on your social networks. Turn it into a game with your sponsors, to see whether you achieve this new objective together and everyone wins.

    Make it seen in the:

    • Project description: Try to explain your new goal in your description like the creator of this project did: To make sure it's seen, insert a banner at the start of the description (max 580 px wide) showing the new goal and encouraging people to follow the project. You can see a good example in the project Anuari Mèdia.cat: Els silencis mediàtics de 2012
    • Blog posts: Remember your patrons receive an email every time you post something on your blog. Look at how these two projects did it:
    • Cover image You can also make it visible on your cover image:

  • Money for your project in cash

    If you've raised any cash for your project because you've thrown a party, passed a collection box round at work or friends have paid you in cash, the best thing you can do to help reach your goal is:

    1. Close your session as project creator (You'll find a "Close session" link on the grey bar at the top, next to your username).
    2. Go through the process of making a pledge for the corresponding reward.
    3. When you're asked to sign up, do so with a different email to the one you're using as project creator.
    4. Use something like "Direct pledges to creator" as your username so people will understand who this user is.
    5. Complete the pledging process by using a debit/credit card. Don't use the PayPal account linked to the project, it is not possible to make a pledge using the same account you have enabled to receive the money pledged.

    Log in as the same user, "Direct pledges to creator", if you need to do this again.

    Remember to take down all the details of everyone who pays you in cash so you can send out their rewards or return their money if you don't reach your goal.

  • Can I make changes to my project page during the campaign?

    Once you've published your project, you can add new rewards, for instance if someone makes a suggestion (provided this doesn't negatively affect anyone who has already make a pledge for the existing rewards), make changes or add additional information to your Detailed Description and edit posts already published on your blog.

    If you want to translate your page, you should do so before publishing your campaign, because you can't edit rewards afterwards.

    During the campaign, you can't edit or make changes to any rewards that people have make pledges for.

What happens once the 40 days are up?

  • Closing the campaign, billing and collecting pledges
    • Collecting pledges and solving payment problems

      Once the fundraising campaign is over, it’s time to collect your patrons’ pledges.

      Some problems may arise when it comes to collecting pledges: expired or cancelled credit cards, insufficient funds in accounts, PayPal accounts that haven’t been set up properly or don’t have enough funds…

      Verkami will get in contact with all the patrons who have had payment problems and tell them what steps to take to sort them out.

      We give patrons 10 days after the end of the campaign to sort out any payment issues and we send them two notifications. Most patrons with payment problems manage to sort them out in these 10 days. The number of pledges that ultimately can’t be collected is usually less than 1%.

      Once these 10 days are up, or once all pledges have been collected, we close the campaign completely.

      From this moment onwards, the link to solving payment problems is no longer active. If a patron tries to sort out a payment problem, they’ll be told to email the creator directly.

      And if a patron asks me how to sort out a payment problem…

      If a patron asks you how to sort out a payment problem, you can tell them to do the following:

      • Go to their user page (log on to Verkami).
      • On their user page they’ll find a link to “Sort out payment problems”

      If they can't sort their problem out from their user page

      Tell them to email us at [email protected]

      If it’s someone you know and they can pay you in cash

      Email us at [email protected] and give us their name so we can tick this patron off as having paid.

      This means they won’t appear on the list of patrons who have defaulted and they’ll keep on receiving news about the project.

    • Closing the campaign completely and billing

      Once the pledges have been collected and any payment problems have been sorted out, if you reached your funding goal* we’ll close the campaign completely and send you our bill, and the Crowdfunding Report on your campaign and transfer the money to your account.

      The bill for our services is 5% of the total amount raised for the project + 1,35% as bank fee for the pledges made by bank card. The invoice will include the 21% VAT on the amount to be invoiced, if applicable.

      The Crowdfunding Report sets out the campaign in detail: the amount collected, the final number of uncollected pledges, all the expenses, the amount collected through PayPal (if it has been used), your account balance and the total amount transferred to your bank account.

      The amount transferred to the creator will be all the successfully collected pledges minus:

      • The bill for Verkami’s services.
      • The pledges made through PayPal that the author will receive directly to his PayPal account, if this payment method had been enabled.

      ^ The funding goal has to be reached with the collected pledges. If the campaign falls short of its funding goal because some pledges cannot be successfully collected, we can’t close the campaign until this has been sorted out. Since this situation does not arise very often, and each project has its own characteristics, the project heads should meet with Verkami to discuss ways of closing the project.

    • How to receive the money

      You’ll receive the funds raised in two different ways, depending on how the patrons made their payment. Part of the money will be paid directly into your PayPal account at the end of the campaign, if this option had been enabled, and the rest will be paid into your bank account within 10 days of the close of the campaign.

      Pledges made through bank card

      Pledges made with a bank card are collected through the payment gateway and paid into a Verkami account.

      We’ll transfer this money to the bank account you gave in your back office in the “Bank and billing details” section.

      This money will be transferred within 10 days of the close of the campaign or sooner if all pledges have been successfully collected.

      If you had enabled the PayPal payment option

      The pledges made through PayPal will be paid directly into the PayPal account linked to the campaign. You’ll receive these pledges the moment the campaign ends.

      You’ll see that PayPal has subtracted Verkami’s 5% fee from each pledge.

      You’ll also see that PayPal has charged you whatever commission you’ve agreed with them, generally 3.4% + €0.35 per pledge.

      You can then move the money from your PayPal account to a bank account.

  • Managing rewards
    • Forms: Gather information on patrons to send out the rewards

      The access to the form tool will be enabled once the campaign has ended. The form tool is specially designed to gather information on your patrons to send out their rewards as quickly and easily as possible.

      You can access the form tool from the Dashboard of your project.

      We recommend you send out the forms when you’ve got the rewards almost ready.

      You can send out a form for each pledge level requesting the information you need from the patrons at that level: shipping address, name to be included in the credits, T-shirt size, etc.

      Patrons who have made a pledge for different rewards will receive a separate form for each pledge.

      Every three days Verkami will send a reminder to any patrons who have not yet filled in the form asking them to do so as quickly as possible.

      When you want to send out the bulk of the rewards, close replies to the forms. Once you have clicked this option, after 72 hours no more replies will be received and any patrons who have not yet replied will receive an email notifying them that replies to forms are now closed.

      Any patrons who try to access the forms once replies have been closed will be given your email address so that they can contact you directly to manage delivery of their reward.

      Once replies to each form have been closed, you can download a handy Excel or .csv file containing all the replies to manage delivery of rewards.

    • Patrons Excel

      We put together a handy Excel to help you manage the process of sending out the rewards. We recommend you download the definitive version once the project is closed and invoiced.

      Once you've reached your goal, you can download it from your patron management page. You'll see an "Export to Excel" button for downloading a .csv text file with the following columns of information:

      • Name: Username
      • Email: User email
      • Amount: Amount pledged
      • Reward Index: If you have different rewards for the same amount, this will help you identify which is which. The number in the Reward Index shows the position of the reward from top to bottom in the reward column on your public project page.
      • Payment Method: Indicates whether the contribution was made through PayPal or credit card. Or if an unpaid contibution has been solved through transfer or directly to the author.
      • Payment Status: Once the fundraising period is over, this column will show whether the amount has been collected at the time you download the Excel (showing "ok") or is yet to be collected (showing "unpaid").
      • Date: Date and time of day when the patron made their pledge.
    • Inform your patrons of the state of play

      Once your crowdfunding campaign is over, your project enters a new stage. Now you can carry it out as planned and deliver the result to your patrons to close the circle.

      But it is vital to keep your patrons informed while they are waiting to receive their rewards. Patrons love receiving updates on how the project is going, getting an exclusive angle on the process and hearing from creators in person.

      This is all part of the crowdfunding experience and it’s what makes this form of getting involved in creative projects so special. Getting to be right alongside creators in the creative process would be unthinkable in traditional ways of consuming culture.

      • Keep the project blog regularly updated: Each new post will be emailed to all patrons. This is important: not all patrons will be following you on social networks and this might be their only source of information.
      • Besides the logistical side, creative projects can often suffer delays and setbacks. If you keep your patrons up to speed and well informed of any new timetables, the community that has supported you will understand. What annoys patrons is only being told that their reward will arrive later than planned at a very late stage.

      When your patrons receive their reward, it will be a far more intense experience, and one very different from traditional ways of consuming culture, if they’ve been up close throughout the whole production process. They’ll feel part of the result and they’ll help spread the word as ambassadors for your project.

      As far as possible, record how things are going and share it with your patrons on the project blog. The rewards are well worth the effort!

  • Download the Crowdfunding logo

    Show how proud you are of the collective effort that brought your project to life by putting the crowdfunding logo on your CD, book, film credits, etc.

    Use the following link to download a zip file with the crowdfunding logo in .png and vector (illustrator) format in English, Spanish, Catalan, Basque and Galician: http://vkm.is/LogoCrowdfunding

Taxes and crowdfunding

  • The following advice comes from professional experts in the field of taxation. This information is not provided for the purposes of aiding and abetting taxpayers looking to evade taxes and may not be used in the case of inspections by the tax authorities. It gives a general overview of the situation and does not cover all the particular features of each individual case. Your accountant will advise you what to do in your specific case.

    What is Crowdfunding?

    Crowdfunding is a direct form of funding projects by adding together individual sums pledged by patrons, who receive exclusive rewards in return.

  • How is crowdfunding viewed from a legal perspective?

    Legally, crowdfunding is viewed as advance payment for acquiring goods or services. Patrons are not giving donations, but paying in advance for goods or services they will receive in the future (eg tickets for a concert by the group they’re supporting)

  • Aren't pledges simply donations?

    In general no, because crowdfunding doesn't fit the definition of a donation. Patrons aren't giving something for nothing: they receive a reward for the funds they give to the creator of the project.

  • How is the project creator's income viewed?

    The money received in the form of pledges will be viewed as part of the creator’s earnings and the creator will have to pay income tax or company tax on this earned income, depending on whether the creator is legally a business or professional individual or a legal entity.

  • What about indirect taxes?

    The creator of the project will have to collect and pay the VAT on their earned income to the tax authorities. The creator will be able to deduct the VAT paid on any expenses related to carrying out the project.

    Patrons (be they legally a business or professional individual or a legal entity) who make a pledge as part of their business or professional activity can deduct the VAT paid.

  • Legally, I'm an individual. Do I have to register as a professional businessperson to pay taxes on the income I receive through pledges?

    If the money pledged is viewed as advance payment for future goods or services to be provided as part of a business activity, then yes, you will you will have to register as a professional businessperson to pay taxes on the income I receive through pledges.

  • Can the project creator deduct the money they pay to the crowdfunding platform as expenses?

    The recipient of the pledges can deduct the fees paid to the crowdfunding platform as another expense arising from their business activity, either in terms of income tax (for business and professional legal individuals) or company tax (for legal entities).

  • Can patrons deduct the money they pledge?

    If the patron is a legal entity or a professional or business individual who makes a pledge as part of their business activity, the pledge will be considered as a tax-deductible expense in terms of company tax or income tax, respectively.

    If, however, the patron is a legal individual who is not a businessperson or a professional, they cannot deduct their pledge.

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