What is the Reserved Funds policy?
We created the Reserved Funds policy to make processing refunds easier for both campaign owners and backers. Refunds are a reality of every campaign (and most online experiences too!). Sometimes backers make mistakes on their contribution or they simply change their minds. While Indiegogo has a Refund Policy that applies, in limited circumstances, to all campaigns on our platform, many campaign owners want to be able to offer refunds after their campaign ends or when our Refund Policy does not apply.
The Reserved Funds policy reserves a small percentage of a campaign’s funds raised (the “Reserved Funds”) to help facilitate refunds for that campaign, so that campaign owners can process refund requests quickly and easily on our platform. These Reserved Funds aren’t shared with other campaigns or with Indiegogo, and remain solely tied to each specific campaign. Reserved Funds will also be used to cover any lost chargebacks filed by your backers.
Read on below for more information on how the Reserved Funds policy works!
What amount will be reserved and when will the Reserved Funds be disbursed?
Amount that will be reserved
Once your campaign raises 1000 in your currency, 5% of those funds raised will automatically be held in reserve. The amount of Reserved Funds will increase as you keep raising funds so the Reserved Funds are kept at 5% of the current total of funds raised. We may also adjust this percentage of Reserved Funds in our sole discretion, you can see more about this below.
Disbursing Reserved Funds
If your campaign is not in InDemand, we will hold the Reserved Funds for you for at least 6 months after your campaign ends and disburse the rest of your funds raised from the campaign in accordance with our other policies on fees and disbursing funds. If your campaign is in InDemand, the reserved funds will be held for at least 6 months on a rolling basis based on the date of contribution.
These are some, but not all of the evaluation factors we will use to determine when and how much of the Reserved Funds to release:
- Estimated shipping timeline of perks and if applicable, fulfillment progress for perks
- Whether the campaign team is regularly responsive to comments and post substantive updates on current and if applicable, all previous campaigns
- Refund request rates and chargeback rates
Where can I see the Reserved Funds amount?
You can view your Reserved Funds on the Finances dashboard for your campaign. Navigate there by doing the following:
- Log in to your Indiegogo account
- Click on your name in the top right corner and select 'My Campaigns'
- Open your campaign page
- On the left-hand toolbar, click on the Finances dashboard
- View your Reserved Funds in the Financial Overview section
What else do I need to know?
Since at least 5% of your funds will be automatically reserved for at least 6 months after your campaign ends, you should take this into consideration when deciding on your goal amount. If you need to raise a specific amount, you may want to increase your goal to make sure your disbursement amount will be what you need to move your project forward. To read more about goal amounts, please see this article.