Currently we have no agreed standards applicable to Crowdfunding platforms. They will surely emerge soon through the work of people such as the proposed ‘European Crowdfunding Association’ and the more advanced platforms themselves. In the meantime we at UK Crowdfunding Today are interested in market feelings about a few of the practices we’ve seen in recent months. Where are the moral and ethical boundaries that will help this industry gain public support and trust?
We posted the scenario, outlined below, on LinkedIn and gained some useful feedback. Now please tell us what you think?
More questions will follow later!
The scenario:
1. A reward based Crowdfunding project is launched on an ‘All or Nothing, Pledged’ basis. It will only be funded if it reaches the target figure, and no monies will be taken until it reaches that figure.
2. Some Pledges are made to the project.
3. Mid-Crowdfund the project changes it’s terms to ‘Keep It All’ and announces that it will now keep all monies even if it doesn’t reach the originally published ‘All Or Nothing’ target.
Question 1: Is that morally or ethically acceptable behavior on behalf of the project?
Question 2: What responsibility does the project have to go back to those who pledged on the ‘All Or Nothing’ basis and offer them the chance to reconsider their decision now that the project is on a ‘Keep It All’ basis and the original project objectives may not be achieved as insufficient funding will now be raised?
Please add your comment below, We’d value some feedback.
