Crowdfunding in the Philippines
Crowdfunding is an old concept, really. Pulling a small amount of money so that you can make someone’s business or dreams into reality is basically bayanihanusing online platforms,” Chux Daza, one of the co‑founders of Philippine crowdfunding website The Spark Project, said during the Crowdfunding Meetup on May 17 at Penbrothers, Makati.
Approaching only its second year, Gava has raised millions of donations already from different campaigns including its most successful and still ongoing campaign the University of Santo Tomas College of Science’ “Project AGham” that wishes to continue educating future scientists and promote the “culture of science” as a driver of social change and development of the nation. Based on GavaGives, the project has so far raised $52,606 or P2.6 million with the target of $80,000. Gava’s charity organization partners include World Vision, Operation Blessing, CARA, Haribon Foundation, Save the Children, WWF, Make Your Nanay Proud Foundation, and Children’s Hour.
How legal is crowdfunding in the Philippines?
Don’t let the law hold your business back – In recent years, crowdfunding saw an increase in popularity among Filipino entrepreneurs looking for a new and effective way to jump-start their start-ups. With the establishment of local crowdfunding sites this popularity will only grow in the years to come.
In 2008, crowdfunding boomed in the U.S. as a direct result of the financial crisis. Because of this, the U.S. government drafted the JOBS Act of 2012 (Jumpstart Our Business Startups Act) that regulates the amount of money allowable for crowdfunding and some security exemptions. With the JOBS Act of 2012, crowdfunding in that country became a quick and safe way for start-ups to get their funding.
In the Philippines, on the other hand, there are no clear laws that directly address crowdfunding as of now and, according to Atty. Francis Lim, former President of the Philippine Stock Exchange, any related legislation is not likely to come anytime soon.