Currently Crowdfunding? Your questions answered here
What if I don't meet my funding goal?
You can always keep what you raise on ioby, even if it's less or more than your original fundraising goal. ioby's "flexible finish" policy allows you to change your campaign deadline, revise your budget, and update your fundraising goal if needed. We understand what it's like to lead grassroots projects, and that sometimes, plans change.
Here are some tried and true scenarios in which flex finish comes into play:
Scenario 1: You're close to reaching your fundraising goal, but your volunteer workday is coming up soon. You know you can get the project done with slightly less funds than you budgeted for and you want to disburse funds to purchase materials you need for your workday.
Flexible Finish: Send your Success Strategist an email with a revised budget describing how you'll complete your project with fewer funds raised than you originally planned.
Scenario 2: You're in the middle of a fundraising campaign and it's going better than you ever expected. You think you can probably raise more money than you originally planned.
Flexible Finish: Send your Success Strategist an email with a revised budget describing how you'll complete your project with more funds raised than you originally planned.
Will ioby fundraise for me?
No crowdfunding platform fundraises for your project, but ioby will provide the tools and coaching you need to run an effective crowdfunding campaign.
ioby regularly shares projects with our national audience via our blog and social media, and our network can give your campaign some extra exposure but know that most donations to online crowdfunding campaigns are made by people in the extended network of the fundraising team.
No matter what platform you use, successful crowdfunding always starts with YOUR crowd.
Can I use ioby as a fiscal sponsor for a grant my project received?
Yes, but only if:
- your project meets ioby's project criteria,
- you are using ioby's platform to crowdfund at least 25% of the project's total funding need. That is, if you expect to receive a project grant for $20,000 and want to use ioby as your fiscal sponsor, your team must commit to crowdfunding an additional $5,000 through an ioby campaign page.
- you are seeking a temporary, project-based fiscal sponsor.
If you do not seek funds in addition to the grant, prefer not to crowdfund, or are seeking ongoing--not project-based--fiscal sponsorship, ioby may not be the best fit fiscal sponsor for this particular project. Check out our tips on finding a fiscal sponsor here.
Do I need to report money crowdfunded with ioby as taxable income?
Disclaimer: ioby is not legally allowed to provide financial or tax advice to project leaders, and we cannot advise on the tax filing requirements for your particular project disbursement. We recommend all fiscally sponsored project leaders consult with a tax professional if possible.
For leaders with projects fiscally sponsored by ioby:
If you have used your ioby campaign funds for the intended project, in accordance with what was stated in your fiscal sponsorship agreement, then the funds are considered grant funds and ioby should not need to issue you a 1099-MISC for project disbursements.
If your financial professional believes that you DO need a 1099-MISC form from ioby, please contact us at [email protected] to discuss your particular situation. Typically, this situation would only arise if you did NOT spend the funds for the originally intended charitable purpose.
For leaders with projects that are fiscally sponsored by organizations other than ioby:
For tax guidance on funds you receive through another fiscal sponsor, please consult with your fiscal sponsor and/or your financial professional.
Does ioby send tax receipts to my project's donors?
Yes! We've got you covered. When you fundraise with ioby for your important community project, we take care of providing tax receipts for your project's donors.
- When your donors give online via your crowdfunding campaign page, they receive an automated thank you from ioby that provides them documentation of their tax-deductible donation. This receipt is sent automatically on the date of their donation.
- When your donors give by check to your crowdfunding campaign, they also receive an emailed receipt to the email address they provide in their check donation instructions.
What can you do if your donor is having a hard time finding their receipt?
If your donor is having a hard time finding their emailed receipt, please ask them to check their inbox for an email from [email protected] or [email protected]. The subject of the email is "Thank you for your donation to ioby.org!". Sometimes, this automatic message will get stuck in a junk mailbox. That's a great place to check, too.
If your donor still cannot find their receipt, we are here to help! Please ask your donor to request a duplicate receipt by emailing [email protected]. Please note that their request may take a few business days to process.
I have tax questions about my ioby funds
Disclaimer: ioby is not legally allowed to provide financial or tax advice to project leaders, and we cannot advise on the tax filing requirements for your particular project disbursement. We recommend all fiscally sponsored project leaders consult with a tax professional if possible.
My donors are looking for proof of their tax-deductible gift to my project, what should I tell them?
You can assure them their gift is fully tax deductible, and direct them to this link for more info on finding the email that ioby sent them confirming their tax-deductible gift when they donated. If they need that email re-sent, they can simply email us at [email protected].
ioby is our project’s fiscal sponsor and disbursed funds to me as an individual for our project. Do I need to report money crowdfunded with ioby as taxable income?
If you have used your ioby campaign funds for the intended project, in accordance with what was stated in your fiscal sponsorship agreement, then the funds are considered grant funds and ioby should not need to issue you a 1099-MISC for project disbursements.
If your financial professional believes that you DO need a 1099-MISC form from ioby, please contact us at [email protected] to discuss your particular situation. Typically, this situation would only arise if you did NOT spend the funds for the originally intended charitable purpose.
We have a different fiscal sponsor that disbursed funds to me as an individual for our project. Do I need to report those funds as taxable income?
For tax guidance on funds you receive through another fiscal sponsor, please consult with your fiscal sponsor and/or your financial professional.
What if part of the funds disbursed to me were used to pay myself for work I did on our project?
ioby is not able to provide tax-advice to individuals about private income you may have received from your ioby campaign. Please consult with a tax professional if possible.
What if I used part of the funds disbursed to me to pay someone else?
If you are paying someone for a service or for their time working on your project, you should consult a legal or tax advisor before doing so to determine tax liability. ioby will not provide a 1099 to anyone on behalf of a project leader, including projects where ioby is the fiscal sponsor.
Still have questions? Here are some further resources:
- The IRS provides some guidance on crowdfunding and taxes, here and here. Please note, as mentioned above, it is NOT standard for ioby to send out a Form 1099-K to individuals who receive funds from an ioby campaign, since the ioby platform is exclusively for public-benefit projects and donors do not receive goods or services in exchange for their donations to ioby projects.
- If you need assistance completing your taxes and generally make less than $60,000 per year, you are likely eligible to participate in the IRS’s Volunteer Income Tax Assistance (VITA) Program. See the IRS website to set up an appointment to access FREE assistance with completing your tax returns and getting your individual tax questions answered.
- The company https://brasstaxes.com/ specializes in tax preparation for freelancers and is familiar with fiscal sponsorship and unusual income structures.
We cannot offer tax preparation advice for your particular situation, but please feel free to contact us at [email protected] if we can be of further assistance.