Once your funding round ends, the contributions will be collected, any outstanding payments will be settled, and the total funding amount will be disbursed. The invoice, funding receipt, and tax classification depend on the final disbursement and your individual legal and tax setup.
When will my funding amount be paid out?
Once everything is complete, the funds will typically be deposited into your designated payout account within about 14 to 21 days after the end of the funding phase.
There are several steps between the end of the project and payment:
- 1Final Review: Startnext and Stripe verify that the requirements for collecting and disbursing funds have been met. Depending on the funding amount, Stripe may request additional information or documents.
- 2Payment of Benefits: As soon as the necessary requirements are met, benefits will be paid.
- 3Information for supporters: Supporters will be notified when the direct debit process begins. If a payment fails, they will receive a notification and can correct their payment information if necessary.
- 4Resolving Outstanding Payments: Failed direct debits, expired cards, or other outstanding payments will be retried or resolved.
- 5Deduction of Fees: Any applicable platform and payment fees will be deducted before the payout.
- 6Withdrawal: The remaining withdrawal amount will be transferred to the withdrawal account you have on file.
What could delay my payout?
Common reasons include:
- unresolved issues or questions regarding identification,
- missing or unclear identification documents,
- many failed attempts to deposit,
- outstanding payments that still need to be resolved,
- a payout account whose account holder does not match the authorized person or organization,
- Additional checks by Stripe based on the funding amount or the risk profile.
You can check the current status in the project interface → Contract → Verification. The notes displayed there will explain whether you need to take action or whether Stripe is already reviewing the data you've submitted.
Where can I find the invoice and the funding receipt for my project?
After the payout, you'll find your invoice and the funding receipt in the project interface → Crowd & Funding → Funding Statistics. You can download both documents there.
The final documents are not yet available prior to disbursement. Until then, the funding amount may still change, for example due to:
- Cancellations,
- failed deposits,
- subsequent corrections to payment information,
- the resolution of outstanding payments.
Only once the funds are disbursed are the final funding amount, the deducted costs, and the correct receipt details determined.
When should I send invoices to my supporters?
You should send an invoice if you are required to issue one as a thank-you gesture or if supporters specifically request an invoice. Whether an invoice is required depends on your legal structure, your tax status, and the type of support received.
Typical examples include:
- A thank-you with something in return: When a product or service is provided, there is generally an exchange of value. An invoice may be required.
- Unconditional support without compensation: This is often treated differently from a sale. You should consult your tax advisor to determine whether you need to issue an invoice for this.
- Hybrid Forms: If a donation combines a monetary contribution with a token of appreciation, it may be advisable to have the tax implications reviewed on a case-by-case basis.
Here's how you can send invoices:
- along with the shipping confirmation or the processing of the thank-you gift via email,
- later via email, if supporters ask for it,
- as an insert in the package when you send a physical thank-you gift,
- if necessary, by mail, if that is required to process your request.
This is general guidance and not tax advice. You can find more information on the Startnext blog about crowdfunding and taxes.
You can get help with sending invoices using the Startnext app, Postfunder.
What am I taxed on when it comes to crowdfunding?
How your crowdfunding campaign is treated for tax purposes depends on your legal structure, your tax status, the type of support, and the rewards offered. Startnext cannot provide a definitive determination of which taxes apply in your specific case.
The payment is made after platform and payment fees have been deducted. How you record the funding amount and the fees in your books—for example, as revenue and operating expenses—depends on your accounting and tax treatment. The net amount paid out is therefore not automatically equivalent to the tax base in every case.
Typical influencing factors include:
- Legal form and tax status: for example, an individual, a sole proprietorship, a corporation, or an association.
- Gifts of thanks in the form of a product or service: These may be considered an exchange of services subject to sales tax.
- Unconditional support without compensation: Depending on the setup, it may be classified differently than an exchange of services.
- Donations: Separate requirements apply to tax-exempt organizations and donation receipts.
- Value-Added Tax: Relevant factors include, among others, the small business exemption, the estimated or actual tax assessment method, and the time of supply.
- Costs and Expenses: Production, shipping, fees, and other project costs can affect taxable income.
This is general guidance and not tax advice. Check with your tax advisor regarding the specific treatment. You can find more background information on the Startnext blog about crowdfunding and taxes.
What do I need to keep in mind when running a crowdfunding campaign around the New Year?
If your crowdfunding campaign ends around the turn of the year, one thing is especially important: For tax purposes, what often counts is the date when the money is actually paid out to you or received—not just when backers make their payments or when your project ends.
Payment may take up to about 21 days after the end of the funding phase, provided that your verification is complete and there are no outstanding charges with Stripe. Please factor this timeframe into your project timeline and—if applicable—into your invoicing and donation receipts.
What specifically should I check?
- When does your funding period end?
- When is the payment expected?
- Have you completed the verification process, or are there any outstanding Stripe requirements?
- Do you issue invoices, or do you need donation receipts?
- What type of taxation and what timing of payment apply in your case?
Scenario 1: Move-in before the end of the year, payment after the end of the year
The contributions will be collected in the old year, but the total funding amount will not be paid out to you until the new year.
What does that typically mean?
- Income tax, corporate income tax, and business tax: Often, the date on which you actually receive the money is relevant. The income is then typically reported in the new year.
- Sales Tax: The allocation may vary depending on the method of taxation and the timing of the service. Under the accrual method, the timing of the service may be the determining factor. Under the cash method, the actual receipt of payment is often the relevant factor.
Scenario 2: Deposit and Withdrawal Before the End of the Year
The contributions are collected in the previous year, and the funding amount is also disbursed in the previous year.
What does that typically mean?
The tax classification often falls in the previous year as well, because you receive the money in the previous year.
Scenario 3: Deposit and Disbursement After the New Year
The contributions will be collected in the new year, and the total funding amount will be disbursed in the new year.
What does that typically mean?
As a rule, both the collection and the inflow occur in the new year.
These scenarios are intended as a general guide. The tax treatment that applies to you depends on your legal structure, your accounting practices, the type of taxation, and the timing of the transaction. Consult your tax advisor regarding your specific situation.