James L. Paris's Blog, page 233

A Christian Kickstarter Campaign - Why I Turned To Crowdfunding

Crowdfunding, for those that don't frequent the Interwebs, is a new way of raising money for your idea or creative project. Sites like Kickstarter are providing a platform for entrepreneurs to raise millions of dollars. Kickstarter has also become an extremely popular crowdfunding platform for Christian projects as well.

Kickstarter has reportedly received over $1 billion in pledges from 5.7 million donors to fund 135,000 projects, which include films, music, stage shows, comics, journalism, video games, and food-related projects (Source: Wikipedia).

What is truly unique about donation based crowdfunding is that you don't have to pay back the money since it is not a loan. You are also not giving up ownership in your enterprise in exchange for the funds raised. Backers receive rewards for contributing to a project. The rewards can vary from a simple thank you, to a signed copy of the finished album or DVD, a t-shirt, or even the honor of being listed in the credits of a movie. Since you don't get a tax deduction for your contribution the project creator does not need to be a non-profit.

Why I Turned To Crowdfunding

I have been operating my various organizations as for-profit businesses since 1991. Many have suggested to me along the way that I go non-profit. For me, I have always felt more comfortable with raising the money for our operations through the sale of our products and services. There is a major disadvantage to this structure, however, when it comes time to fund a major project. Crowdfunding turned out to be the perfect answer for us when we considered funding a faith based movie project.

The Numbers Don't Lie - And The Numbers Are Pretty Remarkable

Kickstarter campaigns have an overall success rate of 43%, which I think is downright amazing. That means that almost half of all campaigns are successful. Remember, however, that Kickstarter campaigns are an all or nothing proposition. If you don't raise your minimum, no money is collected from your backers and you walk away empty handed. Of course, the more money that you attempt to raise the lower your odds of success. In my own case, we are raising a minimum of $25,000 for How To Pray For A Financial Miracle. One chart I found online showed a success rate of only 25% on Kickstarter campaigns raising this amount of money. Still, in business today there are few things that you can embark upon that have a one in four chance of success.  When you consider that this is money you do not have to pay back and that you are not giving up stock in your company, it is a dream for a project creator.

Raising Money For A Christian Movie

My Kickstarter campaign is to create a movie version of my  book, How To Pray For A Financial Miracle. Christian movies, in particular, have had major success using Crowdfunding. Consider the success of Darren Wilson, who raised $357,000 to make a movie titled, Holy Ghost Experience. Wilson is by no means alone, as a quick Google search will list dozens of Christian movies made possible through crowdfunding.

Some People Just Don't Like The Idea Of Crowdfunding

Our campaign has been going now for three days and I just received the first angry e mail. In a nutshell the writer said that I should fund the movie with my own money. They added that if they had any money to give to a project they would use it to fund their own book idea. Well, maybe they are right in one sense. After my first introduction to crowdfunding a few years back, I thought much the same way. Why should I give a guy some of my hard earned money so that he can develop a salad dressing, design a computer game, or write a book? BUT, then I got it... Crowdfunding finally clicked with me when I discovered projects that I was personally enthusiastic about. For me, I don't get too excited about salad dressings or video games, but when I saw the Gosnell Movie Project on IndieGoGo I had to put some money in. A movie that will blow the lid off the most egregious abortion practices in the United States. A story of a doctor convicted of the murder of three infants. A story that the liberal media has all but buried - I'm in! There are millions of people perusing these projects, you just have to find that tiny percentage that your project will resonate with. 

Why People Give Money To Crowdfunding Projects

For some people it is all about the cause. If you find a project that will further a cause that you believe in, why not throw in a few bucks? For others, it is mostly about the rewards. In fact, some crowdfunding campaigns offer such elaborate rewards, that what they are really doing is funding their project by pre-selling their product. Consider the Kickstarter campaign of the Coolest Cooler.  Ryan Grepper, from Portland Oregon, raised more than $13 million dollars! This is truly remarkable, especially when you consider that the goal of his campaign was only $50,000. What is important to note here is that most of this money came from people that will receive one of his coolers as their reward. Still a great campaign, but quite different from one built around a cause.

 A Step Of Faith And A Fleece Before The Lord

The idea of 'putting out a fleece before the Lord' comes from the story of Gideon. In Judges 6, when God directed Gideon to gather the Israelite army to defeat the Midianites, Gideon wanted to know if he was really hearing the voice of God. So, he put out a piece of wool outside overnight and asked God to make it wet while keeping the surrounding dirt dry (as a sign that he was really hearing God's voice in all of this). Gideon did indeed find his piece of wool completely soaked in water and the surrounding ground dry. It is always a good thing to confirm that you are really hearing God when you decide to embark on something big (such as in Gideon's case, going to war). 

I believe that I have been hearing the Lord direct me toward spending more of my time sharing my testimony and the story in my book, How To Pray For A Financial Miracle. I have even been feeling lately that He is leading me to make this the centerpiece of what we do at ChristianMoney.com. The leadership of our organization has had numerous discussions about this. We have even thought at some point we might even stop teaching our popular courses on Internet business and eBook publishing so that we could spend more time on the topic of finances and prayer. 

Am I Hearing God's Voice?

This movie project is my fleece before the Lord. I know it is a long shot for us to raise $25,000 to $50,000 to make this movie. What is so exciting, however, is the idea that it is now up to God. If He is in this He will fund it. I am so excited to see what God will do here. Either way, it will provide an answer on what direction I need to take our organization. There is also the side benefit here of learning how to actually do one of these campaigns. This experience would also give me the opportunity to help others with a Christian crowdfunding training of some kind. Have you raised money with crowdfunding? Please use the comments section below to share your own story.

Helping you make the most of God's money!

James L. Paris 
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice 
Jim Paris 24 Hour Radio 

Credit Repair Advice - Online Dispute Or Letter?

The Internet has changed just about everything, and that includes the world of credit reports and credit repair. Consumers can now access their credit files online and even initiate disputes through credit bureau websites. If you have read our book Credit Scoring Secrets, you are well aware of your credit rights. Of course, the centerpiece of credit repair is the dispute letter. We have our own series of credit repair letters that are available for free to members of ChristianMoneyPlus.com. Today I want to address a frequent question on whether or not to use the online dispute option (now available with all three credit bureaus).  

The latest question I received yesterday from a reader that was challenging an item on her credit report that was older than 7 years. She used the online approach and she received an immediate answer - an answer that she did not like. The online portal immediately informed her that the item was verified to be up to date and that it was not going to be removed. This directly contradicted information she had received by mail six months earlier. At that time, her printed credit report listed this item and noted that it would be removed in September of 2014. In the meantime, it appears that it was transferred to a new collection agency. The current owner of the debt is now reporting it as a new item and this is why the online dispute failed.

Of course, the item should still be removed and the fact that it has been picked up by a new collection agency does not change that. This does provide further confirmation of my longstanding belief that online disputes are ineffective. If a consumer challenges an item the credit bureau is obligated to investigate this item within 30 days. In this situation not only does our reader have documentation that the item is older than 7 years, she has a recent report from the bureau confirming this. It also raises serious questions about how the credit bureau could have fulfilled its obligation of an investigation in the five seconds it took for our reader to get her online response.

I advised her to use a certified letter with a return receipt outlining all of the details and demanding removal. I also strongly recommended that she discontinue the use of the online portals for future disputes. These portals seem like the easier option, but they continue to be the least effective method of dispute. Before sending a letter to a credit bureau, be sure that you carefully read their requirements. You must provide proof of your identity and your current address. You don't get to decide what constitutes this proof. Be sure that your letter includes all of the required items or it will be sent back to you with no action taken. 

More articles on credit and credit repair.

Helping you make the most of God's money!

James L. Paris 
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice 
Jim Paris 24 Hour Radio 

How To Pay Off Credit Cards With New Internet Loans

Eight benefits of Peer To Peer lending and how to use this funding source to quickly pay off high interest rate credit card debt.

How To Pay Off Credit Cards With Internet Based Loans

8 benefits of Peer To Peer lending and how to use this funding source to quickly pay off high interest rate credit card debt.

Strategic Credit Card Default - Can You Just Walk Away?

The term 'Strategic Default' has been coined to reference individuals that decide to 'walk away' from a mortgage obligation. These are people that are hopelessly underwater on their mortgage (owing much more than the value of their home).

Although I may be the first to use the term strategic default within the context of credit card debt, the idea of making a conscious decision to default is comparable. I regularly hear of people that have enormous amounts of credit card debt. In fact, I am amazed that in this economy, card issuers are still granting such large credit lines (even to people of very modest means). It is not uncommon for individuals to share with me that they have $25,000 in credit card debt, many even well above $50,000. Consider the reality that $50,000 at typical interest rates would require $10,000 in payments per year just to pay the interest. By itself, that is more than $800 monthly!

The Question: My elderly mother is in her 70's and has $30,000 in credit card debt. She simply can't make the payments anymore and she wants to know if she should file for bankruptcy.

In this particular case, Mom did not own a home. Her car was several years old, she had no investments or other assets to speak of, and was ostensibly judgment proof. 

Answer: There may be no need to even file for bankruptcy. Mom could simply send a letter to each account and inform them that she is unable to make the payments. 

What happens next will surprise most people - probably nothing. If Mom does not have the ability to make the payments and has no assets to go after, the debt will likely be written off. The only point at which a bankruptcy would be a consideration is if Mom is served with a lawsuit. If a creditor decides to take legal action and obtains a judgment, things could get nasty. Even if Mom does not have any substantial assets, she could still be required to repeatedly appear for depositions to answer questions about her finances. The judgment creditor might try to go after Mom's late model vehicle or the few dollars she has left in her checking account to pay this month's bills. If it gets down to this, then the cost of a bankruptcy would be worthwhile. 

What About The Phone Calls And Letters?

The collection letters I can't help you with, but you can stop the phone calls with a simple cease communication letter.

Know Your Rights Based On Where Your State Laws

The laws of each state will vary on what assets are available to creditors that obtain a judgment for an unsecured debt. Some states, like Florida, even have a provision that protects a primary residence from such judgments. This is why O.J. Simpson moved to the Sunshine State and bought a large home. NOLO Press has a great web page on how to collect a judgment. If you review this information it can be a good guide as to what you might expect as the debtor based on your location.

The Dreaded 1099- C

If you receive a 1099- C from a credit card debt that was written off, you may end up owing taxes. The amount of taxes could be substantial as outlined in this article. There is an exclusion on debts that are included in bankruptcy, so if this happens in your case you might need to consider bankruptcy. I don't know why some individuals get a 1099-C when a debt goes bad and other do not. You can only cross this bridge when you get to it. Another valuable resource is Dan Pilla's book on How To Eliminate Taxes On Debt Forgiveness.

The e Mail You Don't Need To Send Me After Reading This...

'Jim, I thought you were a Christian. I just read your blog post and see that you are now recommending that people don't pay their debts'  

Of course, pay your debts if you can. Try to make settlements with your creditors if possible. The point of this article is that if you are financially insolvent, you may already be bankrupt without even needing to go to court to have the proceeding. A bankruptcy can easily cost $2,000 or more and will hang with you for many more years than defaulted credit cards.

Helping you make the most of God's money!

James L. Paris 
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice 
Jim Paris 24 Hour Radio

 

The Larger Issue Behind Tip Shaming

A lot of debate has ensued over the recent story of highly-paid Philadelphia Eagles football player LeSean McCoy having "stiffed" a server at a local Philly eatery by leaving a 20-cent tip on a $60 check. According to McCoy, the service was terrible, and he wanted to convey that opinion very clearly. In response, the management of the restaurant, PYT, decided to "shame" McCoy over his tiny tip, and posted a photo of the receipt on social media.

Predictably, a lot of people in “Internet-land” went ballistic over the idea that a multimillionaire athlete would leave such a small tip for a server, and, in doing so, missed the real offense here – namely, that a restaurant, or any business establishment, for that matter, would think it appropriate to post a customer’s receipt on social media in an effort to embarrass him.

There is an even-larger issue at play: a lot of folks have become far too comfortable with the notion that, in this age of social media, each one of us should expect that anything we’re doing as private citizens going about our private business can be captured on film and posted on social media for the rest of the world to see. I am quite aware there is no constitutional right to privacy, but should we not ask ourselves just what sort of world it is in which we want to live with respect to this sort of thing? I shudder to think about the public villain I might have become if any of my, say, 15 or 20 worst social moments in life was singularly captured on film, with no context whatsoever, and displayed publicly. Who in the world wants to be judged on the basis of that? No one, of course, and yet far too many people are unable to contain themselves when they see someone who happens to be flailing about in the midst of one of his own 15 or 20 worst moments – out comes the cell phone, which doubles nicely as a camera, and now that particular moment can not only live on, but it can be shared with the rest of the world. How wonderful.

At the end of the day, what, precisely, the circumstances were at PYT restaurant that prompted McCoy to leave his 20-cent tip are known only to the people who were there, and even among them the story is not the same. It would be a grave mistake, however, to decide that the important issue here is about tipping; rather, it is about the growing sense of entitlement on the part of many that anything anyone does while he’s minding his own business is now not only our business, but is the business of everyone else on the planet.

Robert G. Yetman, Jr.
Managing Editor, The James L. Paris Report

Fake Students Awarded $200,000 In Financial Aid

http://www.christianmoney.com On this episode fake students awarded $200,000 in financial aid, Satanic ritual in Oklahoma planned for this week, Yahoo strong armed by NSA in secret trial, why the best thing Ray Rice can do is to shut up and take a year off, Pope Francis marries couples 'living in sin,' New York going after Airbnb hosts for operating illegal hotels, Britney Spears wants her $200 million dollar fortune back, and Bill and Hillary Clinton are back on the campaign trail in Iowa.

Trade For Free Books, Audiobooks, Textbooks And More

I just stumbled across an interesting website called PaperbackSwap.com (despite the name, it is not limited to paperback books). The site is free to join (for now) and operates as a platform for people to trade books, audiobooks, and textbooks online. It appears to be a straightforward arrangement. List your books on the site, and for each one ordered by another member you earn a credit toward a book for yourself. It is your obligation to pay the postage on the books you send out. This means, however, that you get free shipping on the books you receive. The site says that typical shipping (using media mail) is around $2.38. 

I really love this idea and I have a lot of books I need to do something with. I have no space for more books, so I came up with an interesting spin on this. I may go ahead and list 20 or 30 books on the site and accumulate my credits. I can then use the credits to buy books to give away. In fact, the site makes this super easy with a gift certificate option or by selecting 'mail to a friend' in your shipping instructions.

A lot of possibilities here... Maybe for your pastor, the church library, a ministry to people that can't leave their home due to a medical condition, the grandchildren, etc... Also, since the site includes textbooks it could really be a goldmine for college students as well. In my own case, few people I know would be interested in my personal stash of books. What sane person would sit around reading financial and technology books? So, this gives me an easy way to convert my geeky books to titles that 'normal' people would enjoy.

Helping you make the most of God's money!

James L. Paris 
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice 
Jim Paris 24 Hour Radio

5 Ways To Make Money From An eBook Other Than Your Royalties

http://www.makemoneywithanebook.us Most people are unaware of the supplemental opportunities associated with publishing an eBook. The royalties are great, but in this live event Jim Paris and Bob Yetman will share five ways you can make money other than your royalties.

The Murder Of The Middle Class - Wayne Allyn Root

Author Wayne Allyn Root joins Jim Paris Live to discuss his new book, The Murder Of The Middle Class. Topics covered include the nation's national debt at more than $100 trillion, the apathy of President Obama, how to cut government spending, fix healthcare, and deal with the immigration and welfare problem. Will Hillary run in 2016 and will Wayne Allyn Root run for the Nevada Senate seat of Harry Reid? www.christianmoney.com