Reserved Funds
What is the Reserved Funds Policy?
At Linno Fund, we developed the Reserved Funds policy to streamline the refund process for both campaign owners and backers. Refunds are a standard part of the crowdfunding experience, as contributors may sometimes make mistakes or change their minds. While Linno Fund has an established Refund Policy for campaigns across the platform, many campaign owners prefer the flexibility to offer refunds even after their campaigns end or when the Refund Policy doesn’t apply.
The Reserved Funds policy holds back a small percentage of each campaign’s total funds (known as “Reserved Funds”), specifically to allow campaign owners to process refund requests easily and efficiently. These Reserved Funds are unique to each campaign, are not pooled with other campaigns or Linno Fund, and are also used to cover any potential chargebacks filed by backers.
Read on to learn more about how Linno Fund’s Reserved Funds policy works!
What Amount is Reserved, and When Will Reserved Funds be Disbursed?
Amount Reserved
Once a campaign raises at least 1,000 in its currency, 5% of the total funds will be held in reserve. This percentage of Reserved Funds will continue to adjust automatically to reflect 5% of the current total funds raised as a campaign grows. Linno Fund may also adjust this reserved percentage as necessary, as outlined below.
Disbursing Reserved Funds
For campaigns not participating in Linno Fund’s InDemand feature, the Reserved Funds will be held for a minimum of 6 months after the campaign ends. The remaining funds will be disbursed according to Linno Fund’s policies on fees and fund disbursement. For campaigns in InDemand, Reserved Funds will be held on a rolling 6 month basis, calculated from each contribution date.
After the initial 6 month hold, Linno Fund will review your campaign based on several factors to decide whether to disburse the full Reserved Funds amount or retain part of it to accommodate ongoing refund or chargeback requirements. If some Reserved Funds remain held beyond this period, Linno Fund will continue to periodically review the campaign for possible disbursement. All decisions regarding Reserved Funds disbursement and policy timing are at Linno Fund’s sole discretion, and by using Linno Fund as a campaign owner, you agree to this Reserved Funds policy as outlined in our Terms of Use.
Evaluation Factors for Reserved Funds Disbursement
When determining whether to disburse Reserved Funds, Linno Fund considers a range of factors, including:
- Estimated Shipping Timeline and Fulfillment Progress: Whether perks are shipped as promised and on schedule.
- Campaign Responsiveness: How regularly the campaign team responds to backers’ comments and posts meaningful updates on both current and any past campaigns.
- Refund and Chargeback Rates: The rate of refund requests and chargebacks associated with the campaign.
How to View Your Reserved Funds Amount
To monitor your Reserved Funds, navigate to the Finances dashboard in your campaign profile by following these steps:
- Log in to your Linno Fund account.
- Click your name in the top right corner, then select "My Campaigns."
- Open your campaign page.
- In the left-hand toolbar, click on "Finances."
- You’ll find the Reserved Funds amount in the Financial Overview section.
Important Things to Keep in Mind
Since at least 5% of your funds will be reserved for 6 months after your campaign ends, consider this when setting your campaign’s funding goal. If your project requires a specific funding amount, consider increasing your goal to ensure the net disbursement meets your needs. For more guidance on setting campaign goals, check out this article.
The Reserved Funds policy helps campaign owners fulfill refund requests with ease, while providing financial security for backers. This streamlined approach reflects Linno Fund’s commitment to fostering trust and transparency in the crowdfunding community.
