Startnext offers two similar forms of funding—the main difference lies in whether a payment qualifies as a tax-deductible donation:
- Donation: You are supporting a nonprofit project without receiving any (significant) benefit in return. In return, the project may issue you a donation receipt.
- Support: You support a project (e.g., by an individual or a company) or receive something in return (a thank-you gift). This is not considered a donation for tax purposes.
What is a donation?
A donation is a voluntary payment made to a nonprofit organization without expecting anything in return.
On Startnext, we refer to contributions on the project page when the project is run as a nonprofit.
What is support?
A contribution is a payment made as part of a crowdfunding campaign—this could include, for example:
- volunteer support (no compensation required)
- Support in exchange for a thank-you gift (product or service in return)
In these cases, we generally refer to it as "support" on the project page.
How can I tell if my project qualifies for a donation or support?
The easiest way to tell is by the label on the project page:
- For charitable projects, the payment is referred to as a donation.
- In all other cases, it is referred to as (voluntary) assistance.
Important (brief note)
Whether and how you can claim these payments for tax purposes depends on the specific circumstances. If you have any questions about the donation receipt, please contact the project team directly.