Christina
posted this on February 28, 2012 17:24
Contributing to a campaign on Indiegogo is not the same thing as making a purchase in a store. Contributors are backing an idea, not purchasing a pre-made project. Like anyone contributing to an early-stage project, you accept the risk that the project might not come to fruition. We leave it up to you to make your own judgment about the merit of a campaign before making a contribution.
That said, Indiegogo has a comprehensive fraud check system in place to protect our contributors from potentially fraudulent campaigns. All campaigns and contributions go through a fraud review, which allows us to catch any and all cases of fraud. [Related Forum Article: How does Indiegogo deal with fraudulent campaigns?]
If you see a campaign that you believe to be fraudulent, you can inform us immediately by flagging the campaign as prohibited content. Simply click on the "prohibited content" link on the right hand side of every campaign page, or send us a note at support@indiegogo.com
Here's how you can evaluate a campaign before making your contribution:
The democratic nature of crowd funding makes it easy to judge a campaign's likelihood of success. In order for any campaign to be successful, campaign owners have to put thought and effort into their pitch and convince a crowd of people to support their cause. Campaigns that are not transparent with their goals and project status tend not to attract contributors.
Before you contribute to any campaign, read through the campaign page. Ask yourself a few questions:




Campaign owners can choose between two different funding options before launching their campaign that will determine whether or not they will receive all funds raised by the end of their campaign, depending on whether the campaign has met its funding goal by its deadline:
Flexible Funding campaigns will receive all funds raised, regardless of whether or not the campaign has met its funding goal by its deadline. Campaign owners will be required to fulfill all perks claimed.
To check whether a campaign is running a Fixed Funding campaign structure or a Flexible Funding campaign structure, look above the Contribute Now button on the right hand side of any active campaign page. The campaign page will state whether a campaign is a "Fixed Funding campaign: This campaign will only receive funds if at least [funding goal] is raised by [campaign deadline]" or a "Flexible Funding campaign: This campaign will receive all of the funds contributed by [campaign deadline]". [Related Forum Article: Fixed vs. Flexible Funding]
Not all campaigns can offer tax deductions. Indiegogo offers FirstGiving as a nonprofit payment processor to ensure that your contribution will be tax deductible by U.S. tax law and disbursed directly to the campaign's nonprofit beneficiary. Campaigns that use FirstGiving will be marked with a badge that reads "Verified Nonprofit Campaign". Any campaign marked by this badge will be able to offer tax receipts to U.S. contributors. [Related Forum Article: How to Check if Your Contribution is Tax Deductible]
If you have any questions about the project or perks, we encourage you to reach out before making your contribution! For instructions on how to contact the campaign owner, please see: How to Contact the Campaign Owner