Crowdfunding
Crowdfunding: donation, loan or investment?
Crowdfunding connects a project owner with many contributors. It can mean a donation, a loan or an investment in a company. The label alone does not tell you whether money will be repaid or whether returns are possible.
Understand the commitment
In a donation campaign, no financial return is promised. A loan depends on repayment terms and the borrower’s ability to pay. An equity investment can lose some or all of its value.
Check before acting
Before contributing, check the project owner, use of funds, fees, repayment terms and the intermediary’s authorization in your country. The sources below describe French rules; other jurisdictions may differ.