BUSINESS
WEDNESDAY, APRIL 1, 2015
A4 HERMISTONHERALD.COM
Send submissions or story ideas for the Herald Business page to Editor Jessica Keller, jkeller@hermistonherald.com
Crowdfunding
and taxes:
What you
should know
C
rowdfunding — the
online method of
raising money from
people around the world —
is less than a decade old,
allowing artists, activists
and a growing number of
entrepreneurs to connect
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outside the conventional
lending system.
Here’s how
crowdfunding works.
Through sites like
Kickstarter, Indiegogo or
RocketHub, campaigners
seeking funding create
a pitch that educates
potential funders — or
“backers,” as they’re
often called — on their
project. Campaigns share
their funding goal and the
various rewards backers
will receive for taking
part; backers respond with
pledges made via credit
card. If the campaign
meets its goal and
deadline, the crowdfunding
site activates all the card-
based pledges and the
campaign is funded.
While estimates
vary widely, research
organization
Massolution (http://
www.crowdsourcing.
org/editorial/2013cf-the-
crowdfunding-industry-
report/25107) put 2013
crowdfunding revenue at
$5.1 billion globally. Many
crowdfunding efforts today
are artistic or cause-based,
but that is expected to
change in the near future.
Implementing the
crowdfunding provisions
of the 2012’s Jumpstart
Our Business Startups
Act (https://www.sec.gov/
spotlight/jobs-act.shtml),
the U.S. Securities and
Exchange Commission
LVSXWWLQJ¿QDOWRXFKHV
on regulations allowing
ordinary investors to
participate in equity
FURZGIXQGLQJIRUWKH¿UVW
time. This would mean
that business owners could
raise money via the web
in exchange for a piece
of ownership in their
company.
Because the process of
crowdfunding is relatively
easy compared to other
means of obtaining capital,
some might neglect
to research potentially
XQIDYRUDEOHWD[¿QDQFLDO
or legal implications
from their campaign.
Potential crowdfunding
campaigners might want
to make a preliminary call
WRDTXDOL¿HGWD[DGYLVHU
¿QDQFLDOSODQQHURUDQ
attorney before launching
any online fundraising
effort. Individuals,
FRPSDQLHVDQGQRQSUR¿WV
have different tax issues
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that could blunt the
effectiveness of any
fundraising campaign.
Depending on the
fundraising goal and how
that money will be handled
in the aftermath of the
campaign, experts say
some situations may call
for a particular legal entity
to be formed in advance.
If appropriate, participants
could seek guidance to
form an actual business
(https://www.sba.gov/
writing-business-plan) or
QRQSUR¿WKWWSVZZZ
FRXQFLORIQRQSUR¿WVRUJ
tools-resources/business-
SODQQLQJQRQSUR¿WVHQWLW\
JASON ALDERMAN
MONEY MATTERS
Visa columnist
Discussing structural
issues in advance will not
only help with tax issues,
but also lead to better
strategies for fundraising
and long-term mission.
Bottom line: If
you are interested
in crowdfunding
either as a
campaigner, a
beneficiary or a
backer, research a
potential project
thoroughly and
consider getting
individualized
tax, financial
or legal advice
before you
proceed.
%HQH¿FLDULHVVKRXOG
also consider any potential
tax issues they could face
as recipients of money
from a crowdfunding
campaign. Depending on
individual circumstances,
crowdfunding a person’s
unpaid medical bills
PD\KDYHVLJQL¿FDQWO\
GLIIHUHQWWD[UDPL¿FDWLRQV
than crowdfunding
RQH¶VLQGHSHQGHQW¿OP
project. It is not enough
to consider the tax issues
for the campaign and
FDPSDLJQHUV%HQH¿FLDULHV
require their own due
diligence to make sure
crowdfunding provides the
PRVWHI¿FLHQWVROXWLRQIRU
their needs.
Finally, backers should
consider whether they
have any tax questions
about their support. To
date, most crowdfunding
supporters give such
small amounts tax issues
don’t really surface. That
may change in the future
as crowdfunding moves
into the commercial
arena. No matter what
the circumstance, any
potential crowdfunding
backer who works with a
TXDOL¿HGWD[¿QDQFLDORU
legal professional should
consider asking if there
DUHPRUHHI¿FLHQWZD\VWR
offer support.
Bottom line: If
you are interested in
crowdfunding either as a
FDPSDLJQHUDEHQH¿FLDU\
or a backer, research
a potential project
thoroughly and consider
getting individualized tax,
¿QDQFLDORUOHJDODGYLFH
before you proceed.
— Jason Alderman
dLreFWs 9Lsa¶s ¿nanFLal
education programs. To
Follow Jason Alderman on
Twitter: www.twitter.com/
PracticalMoney
HermistonHerald
VOLUME 109 ɿ NUMBER 20
JESSICA KELLER
EDITOR
jkeller@
hermistonherald.com
541-564-4533
MAEGAN MURRAY
REPORTER
mmurray@
hermistonherald.com
541-564-4532
SEAN HART PHOTO
Harley Swain Subaru General Manager Mike Boedigheimer shows the plans for an expansion of the service and sales depart-
ments, which he hopes will begin this year at the dealership. The long-time Hermiston family-owned business is donating
$7,890 to the Hermiston Senior Center at 11 a.m. Saturday.
SHARING THE LOVE
Harley Swain
Subaru donating
more than $7,500
to senior center
BY SEAN HART
HERMISTON HERALD
Harley Swain Subaru
is sharing the love with
a large donation to the
Hermiston Senior Center.
At 11 a.m. Saturday,
the family-owned Herm-
iston auto dealership will
present $5,390 raised
from Subaru’s Share the
Love event and an addi-
tional $2,500 from the
business to the senior
center, which will use the
funds for furniture and
other needed supplies.
Harley Swain Sub-
aru General Manager
Mike Boedigheimer said
he was pleased with the
amount of money raised
during the event and that
the business will give it
to such a deserving local
cause.
“Subaru, for the past
five or six years, has
had the Share the Love
program, where people
would come in and pur-
chase cars, and they could
make a donation of $250
to several different chari-
ties,” he said. “This year,
SEAN HART PHOTO
During the Subaru Share the Love event, Harley Swain Subaru
raised more than $5,000 for the Hermiston Senior Center and
chose to donate an additional $2,500 to the center.
they decided to have the
stores pick something in
their community and give
it to.”
He said Perry Haw-
kins, who has been help-
ing the senior center with
the new facility being
planned, had approached
him about donating to the
center, and when local
causes could be added to
the list of national chari-
ties for the Share the Love
event, Boedigheimer said
it was a perfect fit. Each
person who purchased a
new Subaru selected how
the $250 donation would
be divided between about
six different choices, he
said, and about 95 percent
of the people chose the
senior center.
Boedigheimer
said
Harley
Swain
Suba-
ru chose to add its own
funds to the money raised
because the senior center
is important to the com-
munity.
“The seniors are a big
part of our community,”
he said. “The community
is what makes our living,
obviously the custom-
ers, and we just wanted
to give back. We figured
that was a good place.”
Boedigheimer said his
mother, Eva Swain, and
her late husband, Harley,
started the business in
1976 in the same location,
1915 N. First St., Herm-
iston.
Eva Swain said do-
nating to the senior cen-
ter has been her favorite
Share the Love donation.
“We do have lots of
seniors in the area, and
maybe they don’t get
enough,” she said. “May-
be people don’t think
about helping them out as
much as other charities.
We’re glad to do it. The
community has been real-
ly good to us, so we want
to give back to them be-
cause they’ve given to us.
We’re very grateful to the
community.”
Boedigheimer
said
Harley Swain Subaru is
one of the longest fami-
ly-owned dealerships in
the area, with repeat cus-
tomers who have been
coming to the business
for many years. He said
the business sells new
Subarus and a variety of
makes and models of used
vehicles and will soon be
expanding with bigger
service and sales depart-
ments.
“Business has been re-
ally good,” he said. “Sub-
aru, obviously, they’ve
been growing for the last
three or four years. They
are not making the cars
fast enough. It’s been re-
ally good.”
Harley Swain Subaru
is open from 8 a.m. to 6
p.m. Mondays through
Fridays, from 9 a.m. to 6
p.m. Saturdays and from
11 a.m. to 4 p.m. Sundays.
BUSINESS BITES
Chambers hosting China
tour presentation
People interested in visiting the
Great Wall of China, touring the Bund
in Shanghai or taking a boat ride on
the West Lake are invited to join the
Hermiston and Umatilla chambers of
commerce at 4:30 p.m. Tuesday at the
Hermiston Conference Center board-
room, 415 S. Highway 395, for an ori-
entation meeting about an all-inclu-
sive, 10-day trip to China for $2,399
per person.
The price includes round-trip air-
fare from Seattle, accommodations
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meals a day, all in-country transpor-
tation, gratuities, taxes, fees, deluxe
bus tours and professional English
speaking tour guides. The trip will
tour seven of China’s 10 wonders of
the world.
Tour dates are Oct. 19-28, 2015.
Hermiston chamber Executive Direc-
tor Debbie Pedro will share a Power
Point presentation of the trip she took
To contact the Hermiston Herald for news, advertising
or subscription information:
• call 541-567-6457
• e-mail info@hermistonherald.com
• stop by our of¿ces at 333 E. Main St.
• visit us online at: www.hermistonherald.com
SEAN HART
REPORTER
smhart@
hermistonherald.com
541-564-4534
SAM BARBEE
SPORTS REPORTER
sbarbee@
hermistonherald.com
541-564-4542
in October 2014 and answer any ques-
tions.
For more information, contact
541-567-6151, debbie@hermiston-
chamber.com or visit www.hermis-
tonchamber.com.
School district hosting
educator job fair
The Hermiston School District is
hosting the 2015 Northeast Oregon
Educator Job Fair from 10 a.m. to
2 p.m. April 11 at Hermiston High
School, 600 S. First St., Hermiston.
All prospective teacher candidates
are encouraged to attend and meet
one-on-one with building principals
DQGKLULQJRI¿FLDOVIURPQRUWKHDVWHUQ
Oregon school districts and educa-
tion service districts. Registration is
available online at https://hermiston.
tedk12.com/hire/ViewJob.aspx?Jo-
bID=226. Registration ensures that
regional administrators are ready to
meet with teacher candidates and dis-
ANNUAL SUBSCRIPTION RATES
Delivered by carrier and mail Wednesdays and Saturdays
Inside Umatilla/Morrow counties .........................$42.65
Outside Umatilla/Morrow counties ......................$53.90
JEANNE JEWETT
MULTI-MEDIA CONSULTANT
jjewett@
hermistonherald.com
541-564-4531
cuss teaching interests. Additionally,
teacher contact information will be
SURYLGHG WR KLULQJ RI¿FLDOV WKURXJK
the 2015-16 hiring season. For more
information, contact the Hermiston
School District Human Resources
Department at hr@hermiston.k12.
or.us or by calling (541) 667-6031.
Administrative
professional’s day set for
April 28
The Hermiston Chamber of Com-
merce will host an administrative pro-
fessional day luncheon beginning at
11:45 a.m. April 28 at the Hermiston
Conference Center, 415 S. Highway
395.
During the event, guests will enjoy
a catered lunch and entertainment by
Sharon Lacey, a motivational humor-
ist. Tickets cost $18 and can be pur-
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For more information, call the
chamber at 541-567-6151.
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KIM LA PLANT
OFFICE COORDINATOR
klaplant@
hermistonherald.com
541-564-4530