Crowdfunding is the use of a web-based platform to collect donations. The platform is generally managed by a third party provider and each individual fundraising campaign has a page on the site. Campaigns usually run for a set period of time. At the end of that time, the funds raised, minus a fee paid to the provider, are passed to the donee.
Transparency
You should ensure that it is clear on the crowdfunding web page who the money is being donated to and what the money is being donated for. The webpage should also contain information that explains that permissibility checks will be undertaken in compliance with the rules and that information about donations, including donor details, may be published by the Commission.
We also recommend that you include an imprint on your crowdfunding page. There is separate imprints guidance for non-party campaigners in Northern Ireland, England and Wales and in Scotland.
Permissibility
You must only accept donations over £500 from a permissible source.
As with all types of donations, you have 30 days to carry out permissibility checks and decide if you can accept the donation. The date of receipt is the date you receive the funds from the crowdfunding site.
Money donated via a crowdfunding webpage to a non-party campaigner that is £500 or less is not a donation under the Political Parties, Elections and Referendums Act 2000 (PPERA) and is not reportable.
However, when accepting donations you must be aware of situations where it appears a donor is attempting to evade the donation rules, for example if someone makes multiple donations of £500 or less in an attempt to evade the permissibility rules. It is an offence to attempt to evade the controls on donations. If you are concerned this may be happening, please contact us for advice.
You should ensure that you have sufficient information from the crowdfunding provider and maintain your records in a way that enables you to ascertain if multiple donations have come from the same source.
You must collect sufficient information from every donor to ensure that you can properly check that each donation is from a permissible source. You should be clear on the webpage that this is the reason you are collecting any information. If you are uncertain who the actual donor is, you must not accept the donation. You cannot accept anonymous donations of over £500.
You must also collect sufficient information to comply with reporting requirements.
Cryptocurrencies
Cryptocurrencies are digital currencies that operate independently of any central bank or authority.
The same rules apply to donations received in cryptocurrencies as any other donations. Sufficient information must be collected to check permissibility. There must be a means of valuing the donation given in any cryptocurrency.