[ExI] Important question - need your advice

Sun May 13 23:50:02 UTC 2007

Gina Miller wrote:
> Perhaps I need to clarify a little I am registered and have been set 
> up this way for years now, but I don't plan on any investors or loans 
> etc. What I'm trying to figure out is if it is legal for me to ask for 
> funding to get a particular project started? I know that non profits 
> ask people for financial support, but is that allowed for a company? 
> Am I allowed to get what amounts to donations or raise funds to 
> develop a particular project that will later go to sale (if it has a 
> theme that is supported by the funders?).

As far as I know (IANAL) you can certainly ask for funds for a project 
whether you are just a private person or a company.  What form of 
company though, corporation or not?   The form can make some 
differences, among other things as to tax treatment of these donations 
at your (or your company's) end.   If the money is to fund a for profit 
venture it is possible that some of the donors may expect compensation 
for use of their funds.  I don't think it is reasonable to ask people 
for use of their money without spelling out what they can expect at 
least in terms of being paid back.   From a professional point of view 
it makes little sense to spend money, especially other people's money, 
on something you merely hope will turn a profit someday.   If it is 
something people will donate to just because they want to see it in the  
world then that is fine.   I don't believe there is a limit on taking 
donations for such a thing.  But I do think you should set up an 
agreement to pay people back if this does turn a profit.  

You say you are not asking for investors but it seems to me that is what 
you are doing.  Only you are asking for investors who will receive no 
repayment and no profit even if there is some beyond seeing you get to 
do whatever the project is.   If it is a project or projects that some 
people or organization are interested in funding then they are 
contracting with you or your company to accomplish this project in 
return for their funding.   That is perfectly legit it seems to me.  But 
I think in needs to be made a bit more crisp and clean than seems 
evident in your description.  This is a matter of protection for all 
concerned.

- samantha

> I am not actually hired by anyone. And I am not asking for investors. 
> Can I get support for a project? I really need some help trying to 
> figure this out! Thank you, Gina
>  
> Gina "Nanogirl" Miller
> Nanotechnology Industries
> http://www.nanoindustries.com
> Personal: http://www.nanogirl.com
> Animation Blog: http://maxanimation.blogspot.com/
> Craft blog: http://nanogirlblog.blogspot.com/
> Foresight Senior Associate http://www.foresight.org
> Nanotechnology Advisor Extropy Institute  http://www.extropy.org
> Email: nanogirl at halcyon.com <mailto:nanogirl at halcyon.com>
> "Nanotechnology: Solutions for the future."
>
>     ----- Original Message -----
>     *From:* Stirling Westrup <mailto:sti at pooq.com>
>     *To:* ExI chat list <mailto:extropy-chat at lists.extropy.org>
>     *Sent:* Saturday, May 12, 2007 6:01 PM
>     *Subject:* Re: [ExI] Important question - need your advice
>
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>     Gina Miller wrote:
>     > Hello everyone, I have some questions that I thought some of you
>     might be able to answer. Okay if I am set up as a company (that
>     can't change either), and I am beginning a project that I will
>     need money to create, (but hopefully later will make sales) what
>     are my legal ways of obtaining money to get the project started.
>     Is it legal to get funding from individuals and other groups if I
>     am a company, or is that only for non profits? Do you guys know
>     what my options are or how I can go about getting money to start a
>     project that is under a registered company? I am not being 'hired'
>     but the content of my project may be of interest to people,
>     companies, and non profits that are close to me. That's why I had
>     been thinking I could ask, but I don't know if as a company that
>     is possible, is there a way? Any advice and information would be
>     greatly appreciated.
>     >
>     My experiences are Canadian, so your laws may well differ. When I
>     (and a few
>     others) started up Strategy First many years ago, we went to
>     everyone we could
>     think of that might be interested and asked them to invest some
>     minor amount
>     ($25 - $1000, basically whatever we thought we could get). Since
>     we weren't
>     even incorporated yet, just registered, we wrote receipts that
>     said it was a
>     loan to the company. We used that money to pay for phone calls and
>     correspondence with bigger investors. (This wasn't my department,
>     so I'm a bit
>     vague on how we did it.) When we had secured sufficient money, we
>     hired a
>     lawyer that set up a share system, and then we offered all our
>     creditors the
>     option of being repaid in shares. Since they had been told this
>     was the plan
>     when first approached, they all agreed.
>
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