Starting a nonprofit crowdfunding campaign is neither easy nor simple despite the positive social motivation of the typical campaigner. The reason for this is that the process of creating a nonprofit is complicated, due to the benefits they receive from the government. One of the most useful assistance the U.S. government provides is support to social benefit organizations via an exemption or tax deduction for contributions. Since normal successful crowdfunding campaigns usually spend around 30% of their revenue paying taxes (or they should anyway), this tax advantage will generate huge financial benefit for those who are not subject to taxes. However receiving this huge benefit requires official approval from the US government. Crowdunding is a new method of raising money and IRS has not yet announced guidelines regarding tax procedures for campaigns. Campaigns created through crowdfunding platforms are usually subject to taxes, except for those organizations who have tax exempt ...
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