What Documents You Need To Have In Place Before Launching A Crowd Funding Campaign
What Documents You Need To Have In Place Before Launching A Crowd Funding Campaign?By now you have realized that crowd funding may be the way to go in order to make your project turnfrom a dream into a reality. Finding the right resources to help get your project off of the ground isimportant. The crowd funding world can often seem complex to many but once you have the processesin place, you can run a smooth crowd funding campaign that should yield you positive results.In today’s world there are many people out there who try to potentially scam other people out of theirmoney and resources. This is a sad reality that affects the decision making process for many people.They want to know that their investment of money, time and other resources is for a legitimate project.In order to prove the validity of your project there are several documents that you are going to want tohave in place before you launch your crowd funding campaign. The documents needed are going to varydepending on your project. Some of the ones you may need include: Tax-Exempt Letter from the IRS – If your project has achieved tax-exempt status from the IRS then you will want a copy of the letter from the IRS on hand. This is generally something you can apply for if your organization has 501(c)3 status. Articles of Incorporation – If you have incorporated your organization then you will want to show documentation of this. This helps to show potential investors that you are a more credible organization. Financial Statements – Providing financial statements shows the financial stability or financial status of your organization. It shows where money is being spent. If your organization can’t show that money being donated or invested is being applied appropriately then your chance of getting serious investors may not happen. Written Public Endorsements – Having written endorsements from others is a powerful tool. It shows that there are others out there who believe in your organization and project. They can lend to your credibility and show that your organization and/or project is a worth wild investment. Endorsements from those who are not a part of the organization or related to you allows the public to see that your cause it a worthy one for potential investors. Estimates (Cost Sheets) – Estimates and costs sheets allow potential investors to see the breakdown of what it is going to take to get your project off the ground and running. Potential investors can see why you need the money and where potential donations or investments will be applied. Tax Returns–If your organization has tax returns filed it is great to have these on hand. Potential investors can see the money that has come in for a prior year as well as the liabilities.These are just some of the documents that are good to have on hand when you are seeking potentialdonations and investors. Providing documentation helps prove the credibility of your organization andprojects. It shows that you are not out there to scam others and simply take their money. There arepeople out there who want to donate or invest in projects that they deem worthy. They just want to know
that the money and resources they provide are going to go where you say they are. It’s all about provingthat you are worthy and providing documentation can assist you in that area.