Crowdfunding questions, answered

Money raised in exchange for rewards is generally treated as business income, and the cost of fulfilling those rewards is generally a business expense.

Not on a reward-based platform like Pledzy. You owe backers the reward you promised, not repayment of the money.

5% of each pledge — 3% for verified nonprofits — plus card processing of 2.9% and 30¢ per pledge paid to the payment provider.

No. Backers pay exactly the amount on the tier they choose — no added platform fee and no tip prompt.

GoFundMe charges no platform fee on personal fundraisers in the US, but payment processing is deducted from each donation and donors are prompted to tip the platform.

Kickstarter charges a platform fee on successfully funded projects plus payment processing — and funds only transfer if the project hits its goal.

Thirty to forty-five days. Shorter feels rushed to your slowest supporters; longer drains urgency and leaves a long quiet middle.

Create a business account, build the campaign in the guided builder, and submit it — our team reviews every campaign before it goes public.

No. Sole proprietors, LLCs, corporations and registered nonprofits can all run a reward campaign — but you do need a real business behind it.

Things you already make, do or have space for — priced so the tier still clears its cost after fees, packaging and postage.

On Pledzy the business keeps what it raised, minus the same fees. The goal is a target, not a threshold.

Goals are meant to stay fixed once backers have pledged against them, so set the number carefully before you publish.

That the business submitted registration documents, a tax ID, a photo ID and proof of its bank account, and our team approved them.

By the date you put on the tier. The business fulfils its own rewards — Pledzy holds no stock and ships nothing.

Every campaign is read by our team before it goes public, and businesses can verify their documents — but reward crowdfunding always carries some delivery risk.

Refunds are worked out directly between the backer and the business. Pledzy does not hold pledges in escrow.

No. You receive a reward, not shares, interest, repayment or any financial return.

Yes. Verified nonprofits on Pledzy pay a reduced 3% platform fee instead of 5%.

Generally not, because the backer receives a reward in return — even when a verified nonprofit runs the campaign.

An EIN is the federal tax ID for an organisation. We use it to confirm that the nonprofit on the campaign is the one that exists on paper.