Law for filmmakers and entrepreneurs

Blog

How to Run a Successful Film Crowdfunding Campaign – the legal aspects

More and more filmmakers are relying on self-distribution. This is because the ‘old’ funding money of distributors’ minimum guarantees from a few presales plus tax credits is no longer working. Tax credits still play an important role of course and I do still see films being presold. However, the amount and value of the presales has substantially decreased over the last decade. This leaves filmmakers looking for elusive investments from so-called ‘equity investors’ – and even with a couple of those in place, filmmakers might still be facing a bit of a ‘gap’.  

One way of dealing with this – crowdfunding – of course isn’t new. They have been around for a while, even in times when presales were still at a healthier level. It feels as though they are now back and I’ve seen them crop up in a few different spaces. Often for trailers and pitch documents but frequently also for documentaries and feature films that cater for a specific (narrow) audience.  

Crowdfunding campaigns are a great way of building your audience, which can drive sales at a later date. However, by the time your campaign page goes public, your audience should already exist (at least the base of it – think social media, email lists, etc.) your rewards should already be designed, and your rights should already be in order. 

A successful film crowdfunding campaign is built long before a single backer sees it.  

How Reward-Based Film Crowdfunding Works 

Reward-based crowdfunding is straightforward in principle. A filmmaker sets a funding goal, creates a campaign page, and invites backers to pledge money in exchange for perks. Under an all-or-nothing campaign, the platform releases funds only if the campaign reaches its target within the stated timeframe; otherwise, backers get their money back. Under other campaigns, the producer sets a funding goal but may still draw down funds on the last day of the campaign if the goal hasn’t been reached. 

It's worth being clear about what this model is and isn't. Backers aren't buying a share of your film or expecting a financial return. Instead, what you offer them are tangible token of thanks, such as a poster, a VIP ticket to the premier or a thank credit in the end rollers. 

In fact, from a legal point of view, in a reward-based campaign, backers should not be offered equity (i.e. shares) in your company, profit participation, repayment with interest or another financial return unless the structure has been reviewed by your lawyer and accountant.  

Your backers are supporting a creative project because they believe in it. In fact, I recently invested in a crowd-funding campaign for a short documentary on trans rights that did so well that the producers are now trying to stretch the money to make a whole feature film! 

In your campaign communications, you should be really clear to describe the pledge accurately, avoid guarantees about production, release or returns, disclose material risks  and of course comply with the platform terms, UK advertising rules and applicable laws. 

The main platforms operating in this space each have a different character. I cannot comment on the pros and cons of each but I wanted to give you a starting point for your next steps:  

  • Kickstarter is the most recognised name in film crowdfunding. It operates on an all-or-nothing basis, which creates urgency but also risk. If you don't hit your goal, you receive nothing, and your backers aren't charged. 

  • Indiegogo used to offer more flexibility, including a keep-what-you-raise option for campaigns that don't reach their target. That flexibility was discontinued in 2025 and it now also offers on a all-or-nothing or fixed basis.  

  • Seed&Spark is built specifically for independent film and documentary projects. Its model is slightly different: campaigns need to reach at least 80% of their goal to receive the funds. It also offers filmmakers personalised campaign feedback and other film-focused crowdfunding support. 

Of course – every film and every campaign is different. Choosing the right platform depends on your project, your audience, and your fundraising goal. I'd encourage any indie filmmaker to spend time on each platform before committing, looking at what successful film crowdfunding campaigns in your genre actually look like and what they offered backers. 

How to Build an Audience Before You Launch 

To build an audience before you launch, you need to start months in advance. The filmmakers who hit their targets spent time cultivating a community of people who already care about the project before the campaign page goes live. 

Here's what that looks like in practice: 

  1. Start with who you already know. Your immediate network, friends, collaborators, fellow filmmakers, and anyone who has supported your past projects is your first wave of backers. Lining up early supporters to be first in line to support you on the crowdfunding platform signals credibility to everyone else who finds the campaign later. 

  1. Grow an email list. A direct line to people who've actively opted in to hear from you is one of the most valuable things you can build ahead of a campaign launch. Even a few hundred engaged subscribers can make a meaningful difference to your opening days. 

  1. Build in public. Share the making of your film before there's anything to fund. Behind-the-scenes moments, casting updates, location scouting, and script development. Of course, there are the usual social media platforms – don’t forget about sites like LinkedIn or the more blog-heavy websites out there. Where you find your audience and backers depends very much on the type of film you are developing. And the more invested they are before you start your crowdfunding campaign, the more likely they are to give you when you launch! 

Designing Reward Tiers Backers Want 

Here are some ideas to get you going:  

Step 1: Anchor your entry tier low. Your first reward tier should be accessible enough that almost anyone who cares about the project can participate. A thank you in the credits, early access to a trailer, and a digital update.  

Step 2: Build a middle tier that does the heavy lifting. This is marketeers tell me the majority of your funds raised will come from. Think about what a genuine fan would actually value. A personalised video message, an invitation to the premiere, and early access to the finished film. Meaningful perks that are still deliverable.  

Step 3: Create a high-value tier for your most committed backers. Possible high-value rewards include a courtesy executive producer credit (carrying no ownership, approval, control, employment or profit-participation rights), a supervised set visit subject to production requirements, or consideration for a background role subject to casting discretion, eligibility and any required performer documentation.  

Step 4: Think outside the box. What else might your audience be into? If your film is a rom com then maybe a chat with the principal cast about dating (I actually saw this recently on a film about dating in your 30s and 40s)? If your film is a horror movie then maybe a free make up session with your make-up artist?  

Step 5: Price for deliverability. Every perk is a commitment. Before finalising any tier, confirm that the producer can fulfil it within the disclosed timetable and budget, cap the number available where appropriate, state any material eligibility, territorial, travel, substitution and delivery conditions, and reserve a reasonable right to provide a reward of equal or greater value if fulfilment becomes impracticable.  

Clearing the Film Rights Before You Go Public 

A film crowdfunding campaign is a public act. The moment your page goes live, your story, your trailer, your footage, your music, and your visuals are visible to anyone who finds them. What most filmmakers don't think about until it's too late is whether they actually have the right to show any of it. 

I've seen campaigns pulled down mid-run because the rights to material shown in the campaign video hadn't been cleared. It doesn't matter how much momentum you've built or how many backers have already pledged. If the rights aren't in order, the campaign stops. 

Here's what needs to be cleared before you go public: 

  • The footage itself. Whether it's a short film, a sizzle reel, or behind-the-scenes material from your debut feature, you need to own or have secured the rights to everything shown. If other people contributed creatively to that material, the producer should obtain written agreements assigning or licensing all rights required for the campaign and film, including rights to edit, promote and exploit the material in all intended media and territories, together with consents and waivers of moral rights to the extent permitted by law. 

  • Music. This is the area that catches filmmakers most often. Using a track in your campaign trailer without clearance is an infringement, regardless of how briefly it plays. The producer should obtain written synchronisation and master-use licences covering the campaign, social media, platform hosting, paid promotion and any continuing availability of campaign materials, or commission original music under an agreement assigning the required rights and addressing performers' rights and moral rights. 

  • Third-party material. Unless a documented exception clearly applies, clips, images or footage from other productions used in campaign materials require written permission covering the intended media, territories, term, editing, promotion and paid advertising, and the producer should retain evidence of the licence and source. This applies whether you're referencing comparable films, showing archival material, or using stock footage as part of your storytelling. 

  • Script and story rights. If the film is based on existing material, the producer should obtain a written option or assignment covering the adaptation, development, production, promotion and intended exploitation of the film before crowdfunding, with a term extending through the anticipated financing period and clear chain-of-title warranties and remedies. It goes without saying that the producer should not launch a campaign around material they do not control, and the campaign terms should explain material development – for example, are the underlying rights subject to an option agreement (and therefore more secure) or a shopping agreement (riskier for the producer) or does the producer own them?  

Getting the rights in order is crucial for your film and for protecting your backers’ interests.  

If you're preparing to crowdfund and want to make sure your rights are properly cleared before the campaign goes live, I'd be glad to have a conversation. 

NB: I am qualified to advise on matters of English (UK) law. If you need help with matters governed by another jurisdiction, I am afraid I will not be able to assist. 

Silvia SchmidtComment