Crowdfunding

Crowdfunding is an innovative method that allows projects of all kinds to be supported through contributions from a community of investors. These investors can be individuals, companies or even institutions.

There are three main forms of investment:

• Donations (with or without a symbolic reward)

• Loans (interest-bearing or interest-free)

• Capital subscription (direct participation in a company's capital)

The projects financed can be artistic, industrial, commercial, agricultural, craft-based or even real estate-related, a rapidly expanding field on specialised platforms.

1. Advantages and disadvantages of crowdfunding

Economically and legally

✅ Advantage: actively participating in a community project, giving meaning to one's investment.
❌ Disadvantage: exposure to the risk of default by the project sponsor (no capital guarantee).

In terms of taxation

✅ Interesting opportunities:

• Tax reduction for donations or subscriptions to the capital of an SME.

• Eligibility of certain investments for PEA and PEA-PME savings plans.

❌ Limits :

• Risk of tax benefits being called into question in the event of a donation with excessive consideration or early repayment.

• Loans are taxed at the flat rate (12.8% + 17.2% social security contributions).

• Certain considerations may be reclassified as sponsorship and therefore subject to VAT and income tax.

2. The principles of crowdfunding

Who is this solution for?

👉 For investors: crowdfunding allows you to diversify your savings, invest cash in the medium term, support causes, and even enjoy tax benefits.
👉 For project leaders: this is an attractive alternative when bank financing is difficult to obtain, while also benefiting from high visibility thanks to communication on social media.

Crowdfunding is based on the concept of community: the more appealing and engaging the project is, the more likely it is to reach its funding target.

3. Forms of crowdfunding

• Donations: selfless financing or financing accompanied by a small symbolic reward (e.g. preview products).

• Loans: the community grants credit to the project leader, remunerated by interest or a reward in kind.

• Subscription to capital/bonds/minibonds: the investor becomes a shareholder or creditor of the company, with either variable (dividends) or fixed (predetermined interest) remuneration.

✅ In summary :
Crowdfunding is a modern and accessible way to invest in a variety of projects, offering attractive tax benefits and a strong participatory dimension. However, like any investment, it involves risks, including the risk of capital loss. It is essential to analyse the proposed projects thoroughly before making any commitment.

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