New York SBDC Research Network

From Kickstarter: Kickstarter Inc is no more. We’re now Kickstarter PBC — a Public Benefit Corporation. We’re thrilled to share this news, and we’d love to take a minute to tell you exactly what it means. Until recently, the idea of a for-profit company pursuing social good at the expense of shareholder value had no clear protection under U.S. corporate law, and certainly no mandate. Companies that believe there are more important goals than maximizing shareholder value have been at odds with the expectation that for-profit companies must exist ultimately for profit above all. Benefit Corporations are different. Benefit Corporations are for-profit companies that are obligated to consider the impact of their decisions on society, not only shareholders. Radically, positive impact on society becomes part of a Benefit Corporation’s legally defined goals. Kickstarter is excited to join a growing list of forward-thinking organizations — like Patagonia and This American Life — that hav...

From Medium.com : The first 24 hours were a rush. The next 16 a panic. The last 12 a chart-based roller coaster. That’s what a Kickstarter feels like when it hits the mark. It’s statistically provable that Kickstarter campaigns that fail, fail big; blockbuster Kickstarters are actually far and few between, but they attract more attention because of the amount of money raised. For The Magazine: The Book (Year One), a somewhat ungainly title chosen to describe our project with a high degree of specificity to our likely audience, we were only slightly above average. Let me dissect our results for you

From Entrepreneur magazine . In June of 2012, I launched my first Kickstarter campaign for a previous startup I was involved in -- iPad-case company Origami Slate. Though we reached our goal, there were a lot of hurdles we went through to accomplish our success – everything from dealing with late manufacturers, crabby customers and being clueless on shipping. These struggles inspired me to launch my latest venture BackersHub, a startup that provides tools for crowdfunding-campaign creators. While our company helps provide support for crowdfunding campaigns by assisting in managing various elements, like rewards, shipping and marketing, we realize creators are going to need a roadmap for launching a successful campaign. Here are our top tips for executing a stellar campaign from 10 Kickstarter campaign creators. *** Kickstarter Basics: Kickstarter 101 .

In general, in the US, funds raised on Kickstarter are considered income. In general, a creator can offset the income from their Kickstarter project with deductible expenses that are related to the project and accounted for in the same tax year. For example, if a creator receives $1,000 in funding and spends $1,000 on their project in the same tax year, then their expenses could fully offset their Kickstarter funding for federal income tax purposes. If a creator receives funding in one year and spends money on their project in a later year, consider whether their expenses can still offset their Kickstarter funding using the accrual method of accounting. More from Kickstarter . From one Kickstarter alum: "Approximately 33% of the funding goal goes to pay the state and federal taxes that will be levied against the money raised. American tax law doesn't count up-front production costs as an immediately deductible business expense, so at first I'll have to pay taxes on n...

As BoingBoing noted: Media coverage of successfully Kickstarted projects sometimes makes it look like an easy source of funds for any old half-baked idea. Nope . On the other hand, these were the #1 Kickstarter projects at various points.