What are the tax implications of using FAITHIFY?
FAITHIFY makes no claims as to the tax deductibility of donations made via the site. Donors and potential donors should check with campaign owners for information about tax deductibility.
In general, funds raised on FAITHIFY are subject to taxes. But how much campaign owners might owe can vary based on a number of factors, including the deduction of campaign-related expenses. We highly recommend talking to an accountant or tax advisor. They can guide you through your particular tax scenario in the most advantageous way possible.
Kickstarter has compiled a guide for financial professionals who may not be familiar with crowdfunding.
How do funders fund my campaign?
When a funder clicks the “DONATE” button on the FAITHIFY campaign page, the funder is directed to a checkout page, much like any other online shopping experience. After their information has been entered, our payment processor Stripe pre-approves each pledge based on the credit card the funder provides. A pledge is pre-approved when the credit card is in order (the expiration date is sound, the number matches the credit card, the data has been entered by the user without error, etc.). Funds are NOT collected, however, until the campaign is successful and the campaign period is over (i.e. meets its goal).
What is Stripe?
How do I receive funds?
Before your campaign goes live on FAITHIFY you must create and link a Stripe account with your FAITHIFY account. To do this, log into FAITHIFY, navigate to the dashboard (link in the top left of the screen), and then click the “Campaign Tools” tab. You will see a “Connect with Stripe” button. Click and follow the prompts to create a new Stripe account or link an existing one. Details on how to set up your Stripe account are here. Note that you must fully complete this registration to launch your project on the site. Ensuring that this step happens at the beginning of your campaign creation process ensures that you receive your funds when you project’s campaign duration is over.
If your campaign is successful, funds will be released to you within a few weeks after the end of your campaign. Please note that even if you achieve your initial goal before the deadline you will not receive funds until the end of the time frame you selected when you created your project.
For more details, review When Your Successful Campaign Ends.
How do I review my Stripe balance?
You can log in to your Stripe account to view the routing or transit number of your bank, update your bank account information, or check payments from your campaign. Go directly to www.stripe.com and sign in to your Stripe account. Details on how to set up your Stripe account are here.
Why is my Stripe balance different from my FAITHIFY total?
While FAITHIFY charges no fees for our campaigns, Stripe charges a processing fee on each transaction. This means that the amount you raised on FAITHIFY will be slightly higher than the amount that Stripe puts in your bank account.
Sometimes pledges made to your campaign do not complete causing a difference between your total raised on FAITHIFY and your balance on Stripe. This is usually due to credit card errors. Because there is a gap of time between when funders pledge to your project and when your campaign ends, it is possible that a funder’s card has expired in that time, or was cancelled due to suspected fraudulent activity. There may also be refunds or cancelled transactions showing in Stripe that are not reflected on FAITHIFY. You can check for and troubleshoot errors by reviewing your Stripe dashboard. For more details, review When Your Successful Campaign Ends.
How do I troubleshoot missing transactions?
There are host of reasons why pledges to FAITHIFY might not have been processed. Stripe “pings” credit cards at the time pledges are made, but those cards are not charged until the campaign is successful. Depending on the amount of time between the ping and the actual charge, credit cards can expire, get cancelled, or experience insufficient balance.
If you discover that one of your pledges was not processed due to a credit card error, you can reach out to that funder directly to ask them to honor their pledge. For more details, review FAITHIFY’s What To Do When Your Campaign Ends page.
Why do I have a FAITHIFY report and a Stripe report?
What is recorded on FAITHIFY, and through your FAITHIFY report, are pre-approved pledges; This means the funder’s credit card has been “pre-approved” so that when your campaign closes, their card will be charged. FAITHIFY’s final campaign report shows which transactions that have been marked complete, meaning they were completed through Stripe.
Your Stripe dashboard shows all transactions as well as withdrawals via check or to your bank account. For more details, review FAITHIFY’s What To Do When Your Campaign Ends page.