These days 'Crowd Sourcing' is the way many independent (and now mainstream) creators are getting investor dollars for their projects. The two most common sources today are 'Kickstarter' and 'Indiegogo'. You can also make your own crowd sourcing portal on your website or blog using PayPal's 'Donate'.

No matter which funding portal you use, keep in mind that money is considered 'Revenue' by the IRS and therefore is taxable. Those who put up the money are also considered 'Investors' by the Securities Exchange Commission therefore how you get that funding is also subject to scrutiny by the SEC as well.

Due to recent rule changes those of you who plan on getting funding for making your films and or animation via crowd sourcing had best hire an accountant to help keep you out of trouble. I know, the last thing you want to hear is the possibility of having to pay yet another person when money's tight enough! But, 'what if' your funding drive suddenly takes off? What if instead of the $10,000 you were trying to raise, your project goes viral and you get $100,000 instead?

I guarantee you the phone will ring and it will be the IRS and the SEC in the cue for call-waiting! You damn well will need an accountant then, but word will have gotten out and they'll smell blood in the water. That accountant you would have been able to afford before things blew up will want more than the customary 'pound of flesh' for their services now that the government is on the line.

Here is a breakdown of what the changes are and what you should be looking out for. There's some Accounting and Legal lingo in the blog post copy, but google that $#!% and keep it in mind!

New SEC Rules For Filmmakers