Nature of Crowdfunding

"This type of crowdfunding enables a group of individuals who are interested in a non-financial reward (such as a novel product or experience) to bundle their funds to ensure that their desired reward materializes. The reward may be the product or service. Examples of such rewards include a new gadget, a documentary movie, a custom cruise vacation, etc."

"Reward-based crowdfunding is not covered under MAS regulations. But in this case fundraisers must also abide by charity law. Similar to the case of donation-based crowdfunding, the COC code of practice administrates the reward-based model as well."

Source: Corporate Services