Crowdfunding
Overview
The term “crowdfunding” generally refers to a process of raising money by an individual or business to fund a project or business venture, generally through an online site such as GoFundMe, Kickstarter or Indiegogo, that bypasses traditional lenders such as banks or venture capitalists, and instead appeals directly to the local, or even global, community for financial backing. Originally used by artists, filmmakers, and musicians to fund their artistic or musical endeavors, the use of crowdfunding has expanded to include activists, entrepreneurs and even those in need of medical treatment or who have suffered a personal tragedy.
Related IRC and IRS Publications and Forms
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Jumpstart Our Business Startups (JOBS) Act of 2012
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Section 61(a) – Gross Income Defined
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Form 1099-K