Frequently Asked Questions
What is crowdfunding?
A new term describing the old concept of pooling small amounts of money from a large number of people to fund a project by using web technologies like social media and ecommerce.
Why The Spark Project?
We are a Philippine-based crowdfunding website and community, and we cater to you. We’re bringing crowdfunding to the Philippines to give promising entrepreneurs like you the chance to make your projects possible. The Spark Project is a common space for the creative conscious entrepreneurs and changemakers to support and fund each other.
Ever since our launch in 2013, The Spark Project has been a pioneer in the local crowdfunding scene. It has become the first and longest standing crowdfunding platform that supports creative startups and social enterprises in the Philippines. Learn more about us here.
Who is crowdfunding for?
Crowdfunding is for entrepreneurs, creatives, and changemakers who have projects that they want to spark and turn into a reality. It is also for individuals who are looking to discover something unique and purposeful—looking to support creativity and impact by funding promising talent and being part of their journey.
How do you define a project?
Projects at The Spark Project are defined as eneavors that have a clear and definite goal; an original and achievable output; and can either be funded as a donations-based or rewards-based campaign.
What type of crowdfunding can I do?
The Spark Project offers two types of crowdfunding for project creators.
Donations-based crowdfunding is a type of fund-raising best suited for non-profits and organizations who raise funds for causes such as charity projects and social causes.
Rewards-based crowdfunding is a type of fund-raising catered to entrepreneurs and creatives who are looking to raise funds for their projects or ventures.
Where do the funds come from?
We’ve observed that majority of the funding comes from the Project Creator’s community—family, friends, and networks. These immediate circles initially back and promote the project so that their friends and family would eventually know and back the project too.
How can I succeed in crowdfunding?
Crowdfunding is a very intentional activity that require a good amount of planning, preparing and promoting. The Spark Project provides free tools to help you put together your crowdfunding campaign.
Remember that preparation is key to a successful campaign. Feel free to use these tools.
1. Crowdfunding checklist and canvas – https://100.thesparkproject.com/toolkit
2. Crowdfunding Boocamp – http://thesparkproject.teachable.com/p/crowdfunding-bootcamp
Should you need professional crowdfunding support, email email@example.com to know more about our consulting rates. Having a professional consultant take a look into your campaign can have a huge impact on the outcome of your campaign.
How do we keep The Spark Project safe for crowdfunding?
Having a safe space for project creators and backers to crowdfund is a community effort. It involves the platform, the project creators, and the crowd.
To ensure the credibility and quality of projects on our platform, project creators go through a screening process before they get on the website. Click here to learn more about the crowdfunding procees.
As a backer, it is important that you take the time to review each campaign closely and contribute an amount that you are comfortable with, in the event that the team is unable to deliver the project as planned.
Let’s all do our part in keeping The Spark Project a safe community for aspiring and emerging talent who are creating impact through their projects.
Why crowdfund your project?
There are many benefits to crowdfunding beyond just raising money. Not only does it allow you to raise funds for your project, but it also allows you to raise awareness about your cause, connect with your audience and build a community around your work.
Why crowdfund at The Spark Project?
The Spark Project is a crowdfunding platform based in the Philippines that promotes creative projects and social enterprises. For any creative conscious entrepreneurs who is looking crowdfund primarily to a local audience, being on a local platform that shares the same values is be the best place for you to do that. Read our manifesto.
What kind of projects does The Spark Project allow and not allow?
Projects at The Spark Project must be fundable through a donations-based or a rewards-based, are beyond idea stage, show creative and conscious qualities, and must fall under one or more of these categories:
- social enterprises
- small local businesses
- art, music, and video
- product design
- heritage and culture
- food and beverage
- community projects
We do not allow projects that have a political or religious agenda, contain drugs and promote any illegal activity, and advance personal causes.
For more information, check out our crowdfunding rules guidelines.
Who owns the ideas funded through the site?
The Spark Project provides an awesome platform for creatives and entrepreneurs to raise funds for their projects, and does not take ownership of any of the ideas launched on the site. You keep 100% ownership of your project.
Ideas are a dime a dozen. Some project creators are wary that having their ideas posted online would result to others stealing it. Although we cannot prevent and protect you from other people having the same idea as you. The fact that you have made concrete steps in making it happen still gets you ahead. It’s all about turning ideas into reality.
What are the fees included in crowdfunding?
For both donations and rewards-based projects, the fee is P2,500. This is paid before the campaign is published.
Rewards-based projects: 10% of the total gross funds raised if the campaign is successful, or 15% of the total gross funds raised if the campaign is unsuccessful. This is paid at the end of the campaign.
We have a different fees based on the project turnout to 1) encourage project creators to estimate properly and 2) motivate the project creators to campaign passionately for their projects. We owe it to our potential backers to feature well thought of projects by passionately committed creators through the site.
Donations-based projects: P1,500 for every month that the campaign will be running on the site. This is paid along with the Setup Fee before the campaign can be published.
What if I do not reach my funding goal?
Although this is something that we don’t wish for any of our projects, these cases do happen. Our platform statistics show that 55%-60% of our projects fall short of their funding goals. When this happens, project creators either fill in the shortfall with their own funds and continue on with their projects, or reach out to their backers independently and facilitate the return of their money. You can prevent this from happening by preparing well for your crowdfunding campaign, and setting funding goals that are realistic and achievable. Check out our crowdfunding guide and learn ways on how you can prepare for your campaign and reach your goals.
Can projects exceed their funding goal?
Yes. Projects are not limited to its funding goal. It can very much exceed its target. The funding goal is there to give people an idea how much funding your project needs to fly.
How can backers contribute to my project?
We offer different ways for backers to contribute funds to your project. Backers can pay through Credit Cards, Bank Deposit, PayPal, and GCash.
We allow projects to receive offline contributions through direct bank deposits outside of The Spark Project. In order for these to be reflected and added on to the campaigns funding goal, project creators must declare and show proof of deposit for transparancy purposes.
Will The Spark Project help me promote my project?
In crowdfunding, 80-90% of funds raised will be coming from the Project Creator’s immediate and secondary networks. We will be providing marketing support in the form of social media posts, and newsletter blasts (which will be detailed in our Crowdfunding Agreement), but the conversion from that is minimal. Your goal as a Project Creator is to create a list of people/organizations who share the same vision as you. These are the people who will most likely contribute to your project. Start warming them up even before your campaign is published, Reach out to them via social media, private message, email – anywhere that you can provide teasers for what’s to come. If you do not have a team and you are starting small, we recommend building a support group of friends, colleagues, influencers, and family to help you get the word out. You will play the role of campaign manager and provide them with content that they can share on their own pages – the more people who do this, the more people your campaign will reach.
Is backing a project same a purchasing a product?
Crowdfunding generates exciting opportunities for backers and entrepreneurs alike, but remember that backing a project and receiving rewards are not the same as buying an item online. Instead, supporting a crowdfunding campaign at The Spark Project means you are helping a project, idea or cause that is still a work in progress.
How can I fund and support a project?
It’s easy to back a project. Click on any project that catches your eye in our ‘Discover’ page and click “Back This Project” and this will bring you to a page where you can finalize your mode of payment. If you wish to back by credit card your transaction will be directed to Paypal, our online payment gateway. Should you choose to make bank deposit, you are requested to deposit the payment to the project creators bank account. Once completed, upload an image of the deposit slip to the link provided by the system or email us a copy of the deposit slip along with the project details you are funding.
What should I do before I support a project?
The Spark Project allows backers to support project creators during the very early stages of their journey. It is important that you take the time to review each campaign closely and contribute an amount that you are comfortable with, in the event that the team is unable to deliver the project as planned.
Before you fund projects that you want to support, take some time to evaluate each one. Watch the videos and read the project pitches thoroughly. Validate any claims and identify any potential production risks and project delays. And if things are still unclear, always double check with the project creators before you contribute to the project.
Can people outside the Philippines back projects?
Even though we only house projects from the Philippines. Backers may come from all corners of the world. This can be facilitated through our various payment methods such as Credit Card, Bank Deposits, PayPal, and GCash.
We use third-party payment gateway providers such as PayMongo and PayPal. There are cases when these providers decline certain transactions. We do not have any control over the checks and verifications they make for every online transaction.
What happens after I back a project?
Congratulations! You have just contributed to the realization of a project. The project creator will be informed that you have backed their project. Expect an email from them. They usually start contacting their backers after the crowdfunding campaign period has been completed. But in some cases, they may contact their backers much earlier.
Is there a guarantee that I shall receive my reward?
The Spark Project does not guarantee that project creators will be able to deliver the rewards. It is important that you review each project carefully before backing them. While crowdfunding generates exciting opportunities for backers and entrepreneurs alike, remember that backing a project and receiving rewards are not the same as buying an item online. Supporting a crowdfunding campaign at The Spark Project means you are helping a project, idea or cause that is still a work in progress.
What happens when a project does not reach its goal?
When projects fall short of their funding goal, project creators usually raise the remaining funds outside of the crowdfunding platform in order to continue with the implementation of the project. In some cases, project creators could also decide to discontinue with the project. It will be up to the project creator to determine their course of action and coordinate with their backers should they choose to refund their contributions.
What happens when a project gets delayed?
Delays are common for projects. Sometimes, no matter how much planning is put into the implementation of the project, changes do happen which can be a cause of delay. We encourage project creators and backers alike to keep in constant communication for any updates throughout the implementation of the project.
How do I reach a project creator?
We strongly encourage you to build a relationship with the project creators you are supporting. Project creators provide links on their campaign pages to the different communication channels you may use to get in touch with them.