Small businesses may be very successful raising funds through Kickstarter, but those who receive those funds shouldn't forget the potential tax implications of crowdfunding.
For its part, Kickstarter (with the caveat that they are not tax attorneys) claims that in general, "funds raised on Kickstarter are considered income." However, the crowdfunding platform also claims that Kickstarters may be able to classify certain funds as "nontaxable gifts" instead.
So which is it? Should businesses treat Kickstarter or crowdfunding money as taxable income?