Home – New Forums New here? Share your story Hello everyone! Could someone kindly point me in the right direction..?

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  • #979143
    MattVit
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    Hello all! I’ve been a reader/lurker for a while, decided to create an account today as I’m totally stumped!

    We’re looking into creating a crowdfunding website like Kickstarter.com (well, Prosper.com) for Australia (as Prosper doesn’t allow foreigners).

    We’d be holding people’s money and I’ve heard that there are legal issues with this – apparently we’d be viewed as a financial institution (which is a little crazy, but understandable I guess!)

    So my question is… Where can I find literature or other material on this; or alternatively, what specific professional would be able to assist? ie a Commercial Lawyer? I’m totally clueless as to where to turn. I’ve tried Google’ing it but I just don’t know what phrasing to use! I don’t even know if it’s truly an issue holding donated/contributed money.

    Many thanks and hello again..!

    #1112307
    TheGoldenGoose
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    Hi & Welcome, Matt!

    Im not sure if your set-up would have to be similar to say a real estate having a “Trust Account” set up to hold $ in?

    A solicitor should be able to point you in the right direction, for sure.

    I always find the gal’s at Aspect Legal helpful. :)

    #1112308
    MattVit
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    Interesting, that puts a different perspective on it! The reason I thought it was an issue, is that someone mentioned PayPal – they have all these financial regulations placed on them in Aus and USA because they receive, hold, and send money. We’d be doing the same thing, except we’d receive from multiple people, hold it until it reaches X, then send to an individual, organisation or business.

    But you raise a good point, and thank you for the referral!

    #1112309
    Warrenjc
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    MattVit, post: 125190 wrote:
    Hello all! I’ve been a reader/lurker for a while, decided to create an account today as I’m totally stumped!

    We’re looking into creating a crowdfunding website like Kickstarter.com (well, Prosper.com) for Australia (as Prosper doesn’t allow foreigners).

    We’d be holding people’s money and I’ve heard that there are legal issues with this – apparently we’d be viewed as a financial institution (which is a little crazy, but understandable I guess!)

    So my question is… Where can I find literature or other material on this; or alternatively, what specific professional would be able to assist? ie a Commercial Lawyer? I’m totally clueless as to where to turn. I’ve tried Google’ing it but I just don’t know what phrasing to use! I don’t even know if it’s truly an issue holding donated/contributed money.

    Many thanks and hello again..!

    Hi,

    Trust funds are not difficult to set up, but without proper unbiased guidance, you are opening yourself up to a world of pain. Please feel free to PM me with your details and we can go over a few things. Please note, I am not an expert, commercial agent and nor do I have the certificates to give advice, but I may be able to steer you in the direction of a commercial agency with expertise in this area.State laws may differ as well.

    #1112310
    JaxiB
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    MattVit, post: 125203 wrote:
    Interesting, that puts a different perspective on it! The reason I thought it was an issue, is that someone mentioned PayPal – they have all these financial regulations placed on them in Aus and USA because they receive, hold, and send money. We’d be doing the same thing, except we’d receive from multiple people, hold it until it reaches X, then send to an individual, organisation or business.

    But you raise a good point, and thank you for the referral!

    Just a cheeky thought, but try using Paypal NZ. I am from NZ and there are pretty much no checks and regulations place upon Paypal accounts…I was shocked when I set up a AU Paypal account and all the hoops we had to jump through in comparison.

    Paypay does allow you to set up if you are a trust, so the real estate idea ( although a very sensible idea, might not work)

    I would email the Kickstart team and ask them how they did it….I have found people will usually help out if you ask nicely. Paypay does allow you to set up if you are a trust…

    #1112311
    SuzsSpace
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    Also have a look at Pozible, just like Kickstarter but Australian. Kickstarter work through Amazon who must already have those policies in place as they would take money for preorders.

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