Crowdfunding: Do you know where your money is going? - WTVM.com-Columbus, GA News Weather & Sports

Crowdfunding: Do you know where your money is going?

Posted: Updated:
Joseph Borg, Alabama Securities Commission Joseph Borg, Alabama Securities Commission
  • NEWSMore>>

  • Teens threatening with guns resurface in Columbus viral video

    Teens threatening with guns resurface in Columbus viral video

    Thursday, August 28 2014 11:41 PM EDT2014-08-29 03:41:08 GMT
    The video, titled East Columbus or E-Dub, shows a group of young man flashing guns and threatening to shoot someone. It's an older video police say they've looked into. News Leader 9 spoke exclusivelyMore >>
    A threatening viral video about a Columbus neighborhood resurfaces raising concerns for those living near the highlighted location. News Leader 9's Tyrone McCoy took the video to police and neighbors for response.More >>
  • Are you the Sports Overtime Fan of the Week? Prove it!

    Are you the Sports Overtime Fan of the Week? Prove it!

    Thursday, August 28 2014 11:37 PM EDT2014-08-29 03:37:05 GMT
    You can get in on the Sports Overtime fun with our new segment Fan of the Week! Take a photo of yourself or your crew at the high school football game or whatever you want, and post it on Twitter using
    More >>
    You can get in on the Sports Overtime fun with our new segment Fan of the Week! Take a photo of yourself or your crew at the high school football game or whatever you want, and post it on Twitter using the hashtag #SportsOT9.More >>
  • Police: Missing teen girl found safe

    Police: Missing teen girl found safe

    Thursday, August 28 2014 11:36 PM EDT2014-08-29 03:36:09 GMT
    The Columbus Police Department reports that they have located 16-year-old Faith Taylor. Police say she was found at approximately 5 p.m. and is in good condition. She is currently staying with extended
    More >>
    The Columbus Police Department reports that they have located 16-year-old Faith Taylor. Police say she was found at approximately 5 p.m. and is in good condition. She is currently staying with extended family at this time.More >>

MONTGOMERY, AL (WSFA) - Maybe you've heard of websites like Kickstarter and GoFundMe. They are part of a new breed of online fundraising tools. The process is called crowdfunding. It allows individuals to donate small amounts, but when added to the 'crowd,' it turns into large amounts of money.

Many non-profit groups and charities use these sites to raise money legitimately. But the Alabama Securities Commission wants you to think twice before you type in your credit card number.

When congress passed the JOBS Act, it included new rules that make crowdfunding sites exempt from federal oversight. That means that crowdfunding requests are not reviewed by the Securities and Exchange Commission.

Alabama Securities Commission Director Joseph Borg is particularly concerned about investment opportunities on crowdfunding sites. He says scammers could use the sites to peddle fraud.

"Once exempt, crowdfunding investments will not be reviewed by regulators before they are offered to the public, nor will they be required to provide the same level of disclosures to investors or regulators required of securities offerings," Borg said.

"Investors will need to be extremely cautious as they may be bombarded with all manner of offerings and sales pitches."

Experts say it's important to know where your money is going. If you know the group that is raising money, a crowdfunding site is most likely a safe way to make a donation. But if you're approached about an unfamiliar investment opportunity, make sure you do your homework.

Copyright 2013. WSFA 12 News. All Rights Reserved.

Powered by WorldNow

1909 Wynnton Road
Columbus, Ga. 31906

FCC Public File
publicfile@wtvm.com
706-494-5400
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and WTVM. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.