Business Questions

[ysabetwordsmith.livejournal.com]

This is an opportunity for folks to discuss the business aspects of crowdfunding.  What would you like to know about cyberfunded creativity and how it works?  Do you want advice on a current or planned project?  Ask your questions in a comment on this post. 

Comments

[stryck.livejournal.com]

At what point do "Donations" become "Taxable Income"? What is a good way to track them?

Thoughts

[ysabetwordsmith.livejournal.com]

I've been declaring my writing as a business (using a schedule C form) since ... hmm, 1994 or '95, I think. That allows me to deduct costs of paper, computer, other supplies and equipment, etc. as business expenses. I'm not sure what the hobby threshold is because I haven't used it.

I record donations along with my other writing income in the binder that I use for tracking submissions and assignments and so forth. Last year I started keeping a separate page just for income. The donations get written down there.

I also have a separate electronic file for my Poetry Fishbowl records. That's where I record how much time I spent in each month's session, its other statistics, what got sponsored, how much money came in and from whom, etc. That makes it easier for me to identify my peak and valley months (summer is dead) and my best patrons.

[flutterbychild.livejournal.com]

I'm getting ready to post update sketches for my art for Haiti project...but I haven't gotten any donations. What do I need to do differently? Do I most the updates anyway, with another donation button?

Hmm...

[ysabetwordsmith.livejournal.com]

I've been meaning to send you a little bit, just been swamped.

I'd say go ahead and post the updates, with another button. In advertising, repetition helps to make sales. In crowdfunding, it builds audience interest. And besides, you'll have the original painting to auction off in any case -- somebody is sure to buy that!

You might ask people if there is anything that would hook them better than the perks you already offered. Of course, it's also possible that you're doing nothing wrong, just talking with people who are brokeass broke right now.

Hmm...

[ysabetwordsmith.livejournal.com]

I use PayPal predominantly, and also accept checks. It seems to be the most popular. A related service, ChipIn, is frequently used by webcomics. I've heard of people using Kickstart for specific projects too.

[papyruscrow.livejournal.com]

As a donor, I like to see paypal. Kickstart requires an Amazon account - I don't have one - and given my way, I'd rather give my credit card number to paypal than some random guy on the internet.

The big problem I know of, which may or may not apply to you, is their refusal to have anything to do with "adult" materials, which they interpret pretty broadly. Paypal has been known to freeze accounts on things like informational (not pornographic) gay and lesbian sites, stuff like that.