Summary
Starting next year, JOBS Act, will allow companies to exchange equity,instead of just products and services, for crowdfunding investments.
Description
"The question isn't whether or not you're able to raise millions fairly quickly," said Lynn Turner, a former chief accountant for the U.S. Securities and Exchange Commission. "The question is what do investors get back for the money that they put in? If 12 or 24 months down the road, it turns out that those investments don't pan out and people aren't getting a decent return, it'll result in crowdfunding getting shut down just like the penny-stock markets got shut down."
But governments are often guilty of using taxes for projects that taxpayers might not consider "a decent return"... like using taxes to pay for wars as a means of bringing peace to the world, perhaps. The taxpayer has no way to close down government. International agencies and governments should get the message that taxpayers don't like a lot that goes on with their money or in their name. Crowdfunding is an alternative way to work for the benefit of the disadvantaged when the big brigade isn't doing so. Not everyone wants a financial return for giving their money. They want to see evidence that their money is doing some good somewhere. There are ways of confirming that what is being done is valid and good. If it doesn't work out then the project gets no more money from individuals and it will shut down itself.
Governments are worried that crowdsourcing/crowdfunding might prove more effective in achieving real beneficial change than they are, so maybe they are already looking for ways to close it down.