Crowdfunding in the Horse World
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by: Susan Winslow
In January, pizza deliveryman Jarrid Tansey was forced to return $7 he thought was a tip from a Westport, Massachusetts car dealership. When he returned to the dealership to give back the money, videotape captures the employees jeering and bullying him, including threats to “get his job” and a vulgar woman who offers to place her boot in an unpleasant location. Miraculously, Tansey keeps his cool, gives back the $7, and leaves amid taunts and jeers.
The video was posted on Liveleak and went viral within hours. People were outraged at the way Tansey was treated, and a sympathetic viewer started a campaign on GoFundMe titled “Get Jarrid His Tip Money!” Within one day, over 1,800 people chipped in to raise over $20,000 for Jarrid Tansey.
How does the humiliation of a pizza guy have anything to do with the horse world? It’s called crowdfunding, and it’s a relatively new social platform where people can support a cause, make a statement, or ask for help from a worldwide audience. Empathetic horse people have taken to this worldwide media to help others after barn fires, injuries, horse or human illnesses or simply for help with a creative project.
Crowdfunding sites like Kickstarter, Indiegogo, and GoFundMe offer opportunities for individuals to support start-up companies, individual projects, or social initiatives. The pitch often includes a video or photographs, a written statement of need, and, in some cases, reward tiers. Most donations are not tax deductible unless they are made to a valid 501 c (3) charitable organization, but that hasn’t stopped people from helping others in need or supporting a cause. Crowdfunding campaigns have individual timeframes, with donations being held by the web host until the final date, after which funds are disbursed to the entity that initiated the campaign. Most host websites make their money by withholding a modest percentage of donations as a fee.
There are four basic types of crowdfunding. “Get Jarrid His Tip Money” is an example of Donation Crowdfunding, where support is requested without a quid pro quo. People simply pledge their support through a donation made through facilitators like PayPal. Rewards Crowdfunding is just that: you give and you get something back through reward tiers. Competitor Richard Spooner’s effort to raise $500,000 to buy a Grand Prix horse is an example of Rewards Crowdfunding. His campaign on Rockethub offers tangible benefits for each level of support, from signed photographs to lessons or a ride on the Grand Prix horse, depending on how much you give. With four months to go, he has raised $6,830. Equity Crowdfunding offers financial backers the opportunity to support startups in return for a share of future capital. Lending Crowdfunding is a platform for startups that need instant capital in return for a pledge to pay back supporters with interest during a pre-determined time frame. Through the Internet, this type of world-as-neighborhood support network is growing fast.
It’s also making an impact in the horse world. In addition to providing help for victims of barn fires, injuries, and other misfortune, crowdfunding is now being used as a creative way to make it to the big horse shows.
Last year, a hard-working 24-year-old named Lindsay LaPlante of Encinitas, California had a dream to attend the 2014 AQHA World Show with her talented gelding, Mac N Cheese Please, aka “Noodle.” She was no stranger to elite competition, topping some of the most respected names in the business to win Junior Trail on Only Good Sox with a score of 233.5 at the World Show in 2011.
This time, the road to the World Show was different. Juggling multiple jobs and school, she recalls, “My Mom, Susan Fristoe, and my grandparents supported my show career throughout California when I was growing up. We couldn’t really afford to show at the national level, but they pitched in to help me get there in 2011. When I turned 18, my Mom told me, if I wanted to show, I would have to pay for it on my own. I’ve trained Noodle since he was a yearling straight out of the pasture. I knew he had the talent to make it to the World Show, but it costs between $5,000 and $6,000, which is a lot of money to come up with on your own. I’ve been a vet tech, and I manage and teach riding at Silver Spur Riding School under the guidance of Liz Place of Liz Place Performance Horses in San Diego, so I had saved up a lot, but it was still out of my reach. Noodle and I qualified for the 2014 World Show, so when a friend suggested crowdfunding, I figured I would give it a try. I set up an account on GoFundMe, and the response was just incredible.”
In the span of five months, Lindsay’s crowdfunding campaign netted an impressive $2,900 toward her goal of $5,000, including a generous donation from AQHA Professional Horse trainer Jason Martin, who also posted an inspirational message on her page. “In 1988, the first year I went to the AQHA World Championship, I also needed to get donations to get there. I even had a donation jar at the local feed store. In a borrowed truck and trailer I headed to OKC to follow my dreams. Most people thought I was crazy and didn’t have a chance, I’m sure. I always believed in myself and never listened to others who said I would never or could never do it. This put a smile on my face today when I ran across this. This just proves you still don’t have to be rich in this sport to make it. The road may be a bit rougher, but it’s so rewarding! [I’m] so happy there are still a few me’s left out there! Good luck in OKC; I will be cheering you on.”
Lindsay says his words of encouragement meant as much to her as his generous financial support. “When I started the campaign, I thought I’d get about $500, so I was just blown away by the people who stepped up to help and the amount I received. I had worked hard and saved up, and their support gave me the chance to realize my dream. In addition to their financial assistance, their belief in me made me want to go out there and really do my best for them, too. It was really neat to have their support.” Lindsey made her team proud at the 2014 World Show, taking third place in Junior Trail behind Bruce Vickery’s record-breaking score of 238 1/2 on Signature Absolute and the Reserve Champion pair, Blake Weis on Snap Crackle Pop.
“It really was an incredible experience,” she says with a smile. These days, she has her hands full, teaching 65-70 lessons a week at Silver Spur. “I love working with the kids, and I have no plans to do another crowdfunding campaign. Noodle is being leased by a novice amateur planning to show him this year, and he’s for sale to the right home.” When asked if she would return to social fundraising for another run at the World Show, she responds, “Crowdfunding was great, and it helped me realize my dream, but I wouldn’t do it a second time. That would seem kind of greedy, and that’s not who I am.”
This busy horsewoman offers sage advice to anyone considering crowdfunding to help with their riding goals, “Be realistic about your goals and how much you need to get there. Be honest, and don’t rely on crowdfunding as your sole way to reach your goal. Be gracious to anyone who’s willing to help in any way. It’s important to have gratitude for the people who supported you, whether it’s for $5 or $500, or someone lending you a saddle pad or show shirt. Whatever someone does for you, it’s important to say thank you.”
Lindsay has given riding lessons for years to support her competitive interests, thus making her a professional, so there was never any question about her amateur or professional status when receiving support through crowdfunding. However, as this method of raising money becomes more popular, many questions have been raised about the status of competitors who go this route: amateur or professional?
Recently, the National Reined Cow Horse Association (NRCHA) announced that crowdfunding violates Non-Pro Rule 2.1.1 that states in part, “Payment of entry fees and/or expenses by anyone other than the Non-Pro, his/her immediate family or his/her corporation is considered remuneration.” The penalty for violating the non-pro rule is the loss of non-pro status for that season as well as the inability to compete the following season before being able to apply for non-pro status the following year.”
The AQHA has also considered the issue of crowdfunding as it could affect amateur status. Pete Kyle, AQHA Executive Director of Shows and Judges, offers this advice, “As long as an individual adheres to rule SHW 225.3 in the AQHA Handbook, AQHA does not control how the income is created by individuals to show and compete. According to the rule, the payment for entry fees and/or expenses must be made by the amateur, the amateur’s immediate family, or an amateur’s national sponsored team.”
AQHA Regulation 225.3 outlines the requirements for Amateur status and the penalties for non-compliance. Specifically SHW225.3.1 states that an amateur must not have “shown, judged, trained, or assisted in training a horse (whether or not a registered American Quarter Horse) for remuneration, monetary or otherwise, either directly or indirectly. Payment of entry fees and/or expenses by anyone other than the amateur, the amateur’s ‘Immediate Family’ as defined herein or an amateur’s nationally sponsored team (team demonstrations, exhibitions or international competitions only) shall be considered remuneration.”
Before thinking about starting a crowdfunding campaign for show costs, all competitors should review their respective breed rule books thoroughly to make sure they aren’t jeopardizing their status.
Also, donors to crowdfunding campaigns should use the “is it real” litmus test before committing their money. Where there are generous people, there are also those who prey on them, so stories of fraud and financial predators using crowdfunding are rampant.
In November, KXAN Investigator Lindsay Bramson profiled the story of a Taylor, Texas man whose fiancee, Jessica Roderiguez, died after childbirth. The man, Moses Perez, was bereft, and the sister of one of Jessica’s co-workers started a crowdfunding campaign, ostensibly to help him with medical bills and funeral costs. The funds were withdrawn by the woman who started the campaign, but Perez never saw a dime. Due to the zealous work of the investigative reporter, the woman who started the fraudulent campaign and took the money was arrested for “defrauding donors online.” It is unlikely that the generous donors who stepped up to help Perez will ever get their money back. Sites like snopes (www.snopes.com) and the local attorney general’s office are helpful venues for checking out potentially fraudulent campaigns.
Despite the occasional pitfalls, crowdfunding is an ingenious way to support a cause, affect social change, or simply help someone in need. Most of us can only dream of winning a championship title at an event like the AQHA World Show, but when we’re part of a team helping someone on that quest, it’s exciting to be part of their success. Crowdfunding is clearly here to stay, and it’s likely there will be more people in the equine industry taking advantage of this source of worldwide support. The key to asking for help is to be clear and honest. The key to helping is to temper compassion with a little bit of common sense.
Aside: This article is in no way intended to be an endorsement by The Equine Chronicle of utilizing crowdfunding for any reason. It is simply an informative piece about a relatively new social platform that’s gaining ground in the horse industry. It is entirely a competitor’s own responsibility to confer with their respective breed association and rulebook to ensure no exhibitor status rules are being violated.
