The real cost of storm chasing - and how to fund it

[Warren Faidley]

One caution point with crowdfunding: The IRS is starting to go after individuals who have raised money and not reported it, misreported it and/or used it for personal projects while trying to avoid taxes. I know this because a reporter contacted me for comments about a story he was working on involving Kickstarter and the misuse of funds. More on this at some point.

The problem I see with crowfunding is that you never really know how the funds are actually used. Your only obligation as a creator is to provide a "gift" or "product" when completed. I would feel guilty if hard working people provided me with funding only to be used for side show vacations, toys and publicity projects.

W.

 

[Jim Michael]

I just never understood the crowdfunding thing. People take family vacations every year without asking strangers for handouts.

Crowdfunding isn't a handout. The successful projects provide the participants with something tangible. You have to be sufficiently creative to offer something with value to those who participate, like a t-shirt with a clever design, a print of your best weather shot, a DVD, invitation to the party at the screening of your film, their name in the credits as an associate producer, etc. The formula should be something like 1) I have a project idea 2) I need funds to get the thing going 3) if you participate and help fund it you get something at a level equivalent to your contribution.

 

[Jon Strebler]

Crowdfunding isn't a handout. The successful projects provide the participants with something tangible. You have to be sufficiently creative to offer something with value to those who participate, like a t-shirt with a clever design, a print of your best weather shot, a DVD, invitation to the party at the screening of your film, their name in the credits as an associate producer, etc. The formula should be something like 1) I have a project idea 2) I need funds to get the thing going 3) if you participate and help fund it you get something at a level equivalent to your contribution.

In certain instances, it definitely can qualify as a handout. If people are willing to fund chasers then more power to them and I don't have an issue with it, but let's just call it what it is.

 

[Justin Wilcox]

Crowdfunding isn't a handout. The successful projects provide the participants with something tangible. You have to be sufficiently creative to offer something with value to those who participate, like a t-shirt with a clever design, a print of your best weather shot, a DVD, invitation to the party at the screening of your film, their name in the credits as an associate producer, etc. The formula should be something like 1) I have a project idea 2) I need funds to get the thing going 3) if you participate and help fund it you get something at a level equivalent to your contribution.

Oh I get that. If the contribution matched the normal cost of a t-shirt, dvd, or signed book I wouldnt have said anything, but from the ones ive seen over the years it just isnt that way. Asking $100 donation for a t-shirt is a handout to me, or $1000 for a 30 minute Skype session lol.

 

[Justin Wilcox]

Must have me confused with someone else LOL. We pay for chases out of pocket, as they come, as we can afford to.

Meh, it was a convo I joined in on STchat midway through some time last year lol. It was a good idea anyway imo. If I cant pay it off I wont chase. It forces me to build my credit back up. At least thats what I tell myself lol.

 

[Ben Holcomb]

Justin Wilcox I would take a can of soup over Applebees any day (yuck, Applebees)

I keep good records of my mileage and expenses and write them off against anything I make. I just do it all as a self proprietorship, and haven't had any problems. My tax guy has suggested I don't write off everything, so I usually don't. I can "find" those later in case I was audited. I do show profit every once in awhile, especially last year. This year I should break even to a slight loss. It's all a little give and take.

With that said, storm chasing is one of the biggest parts of my life and I really enjoy chasing, so the cost is irrelevant to me. I usually spend money each month on traveling and I just plan to spend that storm chasing when the spring rolls around. This year should be extra cheap with gas being so low. I've also got a ton of Hilton points, so I should be able to score some cheap hotel rooms. On top of that, I put everything on credit cards and earn cash back, miles or hotel points for every buck I spend then pay it off at the end of the month. It's really a win win.