The Bad News About Crowdfunding

The good news and bad news about crowdfunding is that its democratic.

You can give to help someone with cancer treatments or support the facist groups that target minorities.

It’s important that the public be aware of who they are giving their money to and what is going to happen to those funds.

One web portal that supports these groups (not naming it) keeps 15% for itself, gives 10% to the person who initiates the campaign, with the remaining 75% to the “cause.” Compare that to GoFundMe charges 5% and a 2.9% processing fee.

Caveat donor!

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, Charity, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Legislative Intent and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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