Projects are defined by you in terms of suggested goal and the rewards ("Dream Tiers"), if any, you will give to supporters who provide funds. Dreamfuel assists with setting goals, defining and describing the use of proceeds for your supporters. You are responsible for communicating with potential supporters, however Dreamfuel will of course help with any technical needs of supporters. All projects are conducted on a “best efforts” basis, meaning that the funds from supporters are released to you at the completion of the project however defined, such as fixed time or fixed amount, in the project.
The fees for expenses come from the funds provided by supporters. Please be mindful and aware of the costs that go into your rewards for supporters ("Dream Tiers"). The Dreamfuel team will help by advising you on how to keep costs under control as well as suggest reputable merchandise companies when physical goods are part of the campaign. The most effective tiers however are often intangible, custom to you and creative in nature.
Dreamfuel's fees for providing the service and our support for your project is 10% percent of the gross amount of fees from supporters. You are also responsible for reimbursement or payment of payment and credit card processing fees. Dreamfuel's payment processor is Stripe, which charges the sum of a flat fee of $0.30 per payment transaction + 2.9% percent of the transaction amount.
Dreamfuel's fees for providing the service and our support for your project is 10% percent of the gross amount of fees from supporters. You are also responsible for reimbursement or payment of payment processing fees. Currently, Dreamfuel uses Gumroad, which charges the sum of (1) a flat fee of $0.25 per payment transaction and (2) five percent of the transaction amount.
You can offer any legal rewards, but keep in mind that you are responsible for both the reward and delivery/fulfillment for your supporters. Dreamfuel will assist you in identifying rewards that are valuable to supporters at reasonable total costs to you. Rewards should be non-monetary (it would by costly and unhelpful to send money back to supporters).
You are responsible for working with the supporter to arrive at a mutually satisfactory solution. You must, if necessary, offer a full refund to the supporter. We can help you set specific limits, and communicate those, when there are only a limited number of rewards available.
The tax treatment of the money you receive depends on the specifics of the structure, if any, you have set up to accept these funds. Depending on your location's applicable tax laws and the exact circumstances, the funds you receive may be income, gifts, or donations. You should consult with your own tax or legal advisers as you structure the campaign.
Deductions for supporters are governed by the applicable tax laws. Under U.S. law, contributions to 501(c)(3) nonprofits are tax deductible. If you are creating a project on behalf of such an organization, opt-in when prompted in the campaign creation process to note that you are a 501(c)(3). By doing so, your supporters are incentivized to contribute even more as their amounts are tax deductible in the United States.