FAQS
Why would entrepreneurs use Thundafund?
You get to keep ownership of your idea. (And don’t need to sell your soul to the bank.)
You get to test the feasibility of an idea before scaling it up. When people commit to an idea or project by putting their money on the table, then you know you have a solid idea. It is very easy to say – yes I like it – commitment is key.
You want a marketing campaign – integral to the money raising process.
Crowdfunding fits with your brand and/or idea.
Your crowdfunding success is great future communications content.
What is an ‘In-Kind’ reward?
An ‘in-kind’ reward is a project-related item the project creator pre-sells to backers in exchange for pledging in their specific project.
Rewards are relevant to the project and each pledge level offers its own unique reward, therefore rewards differ according to the individual investment amount made.
Thundafund operates as a marketplace, so it’s imperative that rewards have an affordable ‘retail’ factor to them, but can also include recognition and experience
What type of Rewards can you give in return?
Number 1 Rule: Give fair value.
If people feel that they’re over-paying for a reward, it’s unlikely they’re going to back you. Would you back yourself?
You can offer:
· Retail | Products
· Recognition
· Experience | Access …
Is Thundafund a Bank?
No, it a crowdfunding platform and acts only as a connecter for project creators and backers. The funds used via Thundafund are only held on behalf of projects until their campaigns are completed (no more than 90 days). If successful in their completion, the funds are transferred to the project creators, if unsuccessful the funds are returned to the backers.
What are the fees?
There are no fee’s to join Thundafund – just a simple registration.
Thundafund receives a fee of either 7% for regular projects and, 5% for registered NGO’s, exclusive of VAT.
3rd party fees and administration transaction fees, depending on the payment method, can range from 3% – 5.5%, which is paid by the Project Creator. The payment method, EFT transfers carry a R10 fee per transaction.
How much (or little) funding am I allowed to ask for?
Projects average between R5 000.00 – R100 000.00, but at the extreme, can go into the millions, it really depends on what you’re looking to fund and the profile of the crowd who will be backing you. Pledges average between R100.00 – R1000.00 and can range upwards substantially.
What happens to the money until the target is reached?
The money you put towards a project is held in a separate Thundafund transaction account until the project crowdfunding campaign reaches its end. At which stage it is either transferred directly to the Project Creator or back to the Backers.
How long will it take to receive my funds when I reach my target?
Once your project ends and hits the target. There is a 2 week period where Thundafund allows a 5 day cooling off period for pending payments and to reconcile all successful payments.
How does Thundafund monitor delivery of rewards as promised by project creators?
Thundafund doesn’t monitor the delivery of rewards. The ‘contract’ as such is between the backer and the project creator, Thundafund is the channel. The power of the crowd to keep project creators to their delivery promises is one of the defining features of crowd funding. Simply put, the fact that rewards have been promised to many people, mean that there will be many people following up on their reward – and people from the project creators own network too.
What TAX do I pay or declare?
It is important to note that Thundafund does not offer any tax advice and that you would need to consult your tax practitioner despite the information we provide here.
If you would like to have a look at any documentation in the mean time you can have a look at treasury.gov.za or SARS.
You will need to consider the reward types you are offering on the campaign and the total amount made on each purchase type. It is likely Reward types which are product-based would be considered taxable as per your current business operations.
The important legal stuff:
The dogs of law-war get barking mad when it comes to things like copyright. DO NOT TRESPASS. Don’t use music, images, video, or other content that you do not have the rights to. The easiest way to avoid copyright headaches is to create all the content yourself or use content that is copy-left or free-to-public. For legal, mostly free alternatives, check out some of these great resources: SoundCloud, Vimeo Music Store, Free Music Archive, and ccMixter.)
Thundafund trustworthiness:
Who is responsible for completing a project as promised?
The completion of a project rests entirely on the Project Creator’s shoulders. These are passionate people who want to see their project successfully completed. Things can go wrong, but then, if they weren’t stepping out there, wouldn’t the world be a boring place? That is why the Backers are so incredibly important: you are giving the Project Creator the chance.
How do backers know if a project will follow through?
Keep a keen sense of savvy about your backing. Look at the Project Creator’s planning, their updates, the links they include – such as their social media, and their video. Don’t be shy to contact them directly, and ask for further information or to extend a simple “Hi”.
How do I know a Project Creator is who they claim they are?
Our application procedure gathers information about the Project Creators, and also takes them through a process of analysing the realities of their deadlines, their ability to deliver on rewards, and the practical aspects of their project.
Secondly, their interaction with you: watch their video on Thundafund, interact with the Project Creators and you’ll get a good sense of who the creators are, and if you would like to take a chance and back them. You’ll also see them and be able to interact with them via their video and various social media.
What should creators do if they’re having problems completing the project?
Be honest: reach out to the crowd. If there’s a bit of a speed bump along their road to success, Creators are expected to be open about the situation and post an update to their Backers. Letting your Backers know of any problems you face could even save the project: Backers may have that ‘aha’ moment you’re missing.
Are updates going to be emailed to backers?
Yes. Project Creators are expected to communicate with their Backers. As the project campaign develops, how often and in what detail is entirely dependant on the Project Creators, however Thundafund does advise Project Creators to keep a flow of communication going during the campaign – finding a balance between latest news, and over-informing…
Is a project creator legally obligated to fulfill the promises of their project?
Yes, as set out in Thundafund’s Terms & Conditions a Project Creator is legally required to fulfill all their Rewards promised. While Thundafund can’t enforce this, the CPA – Consumer Protection Act of South Africa entitles any project backer to demand their cash back from the Project Creator if they don’t receive what’s been promised.
Can Thundafund refund the money if a project is unable to fulfill it’s promises?
No, if the project campaign has been successful and the funds have been transferred to the project creator, Thundafund can not refund any money as all transactions operate between Project Creators and Backers. Once the project has been successful and the project campaign has ended, the pledges are received by the Project Creator. Refunds can only occur on a personal level between Project Creator and Backer.
Why can’t Thundafund guarantee projects?
The nature of start up projects is that some may fail. Thundafund is an arena where project creators pitch their ability and backers take a chance on their idea becoming a reality. The nature of crowdfunding means you are taking a risk that a project might not work: but your risk is small, and the rewards stretch further than simply the reward each project promises to gift you.
Thundafund is a space to allow this perhaps-maybe-probably.
Backer Questions:
Why should I support projects?
It’s win-win: you will either be part of a successful endeavour or your money is returned to you.
To support someone you know, or would like to know because they’re awesome.
To receive the in-kind rewards on offer.
To be part of a community building Africa.
To help a really good idea become a reality.
To see how good your instincts are as an investor… will you back a winner?
Good karma and good fun!
Who is responsible for fulfilling the promises of a project?
The Project Creator. The Thundafund team are there to assist and through our mentorship and business support programme we provide an incubative environment for project creators, but it’s totally up to the project creators as to whether they take up the support or not, both during their campaign with us and after they’ve left our stable, have received the cash for their project and are working to deliver on their promises to their backers.
What happens when a project receives more funds than it’s target amount?
Champagne anyone? The Project Creator keeps the excess amount and how they use it is entirely project dependent. Remember, that more money in effect means more people backed the project which results in more rewards needing to be produced and delivered. Extra money also gives Project Creators the opportunity to possibly ‘upgrade’ by adding extra features to their project and rewards.
I haven’t gotten my reward yet. What do I do?
Contact the project creator. If in the unlikely event of loss of pressure and it does happen that you are unable to reach them, contact us at support@thundafund.africa
How do I know when rewards for a project will be delivered?
Project Creators put in an estimated delivery time for each reward – but do consider giving them a little bit of breathing space if they take longer than promised. With new products / ideas coming out, often unexpected hurdles need to be cleared which can cause delays. We do emphasise to project creators to give themselves enough time. We also advise Project Creators to keep in contact with you, the Backer.
