The MEMO below was posted for the industry by CfPA 2024 President, Brian Christie  



TO: All Industry Participants in the Regulated Investment Crowdfunding Industry 

CC: CfPA Board of Directors 

FROM: Brian Christie, President (2024), Crowdfunding Professional Association, 501(c)(6)

DATE: February 16, 2024  

SUBJECT:  CfPA Recommended Best Practice: “Regulated Investment Crowdfunding”  


Dear Industry Colleague:

I am writing on behalf of the Crowdfunding Professional Association (CfPA) to inform you of an industry Recommended Best Practice that was adopted and approved by the CfPA Board of Directors on January 8th, 2024.

The CfPA board recommends that all industry stakeholders hereby use the term 'Regulated Investment Crowdfunding' as an umbrella term and when referring to transactions, activities, and operations that may involve non-accredited investors and that are governed by the provisions of the JOBS Act, as regulated and enforced by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

We have encountered that widespread confusion currently exists among prospective investors, issuers, and other industry participants due to the broad use of the term 'crowdfunding.' This term is also used by consumers, the press, and companies operating in the fields of rewards-based crowdfunding and donations-based crowdfunding, neither of which is regulated by the SEC. Furthermore, while admirable, the efforts by some industry participants to provide clarity through use of other terms (e.g. “online capital raising,” “investment crowdfunding,” or “equity crowdfunding”) are seen as insufficient or, in some cases, as potentially misleading.

Formal adoption of the term “Regulated Investment Crowdfunding”, although lengthy to write out, should have immeasurable benefits for our industry. It will help to reduce confusion, enhance transparency, solidify an identity for our industry, and foster a better awareness that legal and regulatory frameworks and agencies govern our industry. By standardizing around this term, it should also make marketing efforts far easier for industry participants and vendors and it should lessen potential reputational risk associated with activities by unlicensed entities, including rewards or donations platforms.

Our reasoning in selecting this combination of terms follows: 

  • “Regulated” helps to differentiate our industry from the “wild west” atmosphere in crypto, other emerging “asset” classes, or less regulated sectors such as Venture Capital and Private Equity. 
  • “Investment” correctly connotes that an investment contract is being formed – clearly distinguishing the transactions of our industry from those of well-known non-regulated platforms such as Kickstarter, Indiegogo, and GoFundMe. It also clarifies that any type of investment may be offered - offerings are not limited to equity.
  • “Crowdfunding.” Finally, as related in the JOBS Act, and as the Crowdfunding Professional Association, it is only practical for us to recommend and maintain use of the term Crowdfunding. 

While adoption of this Best Practice is voluntary, we would recommend that accountants, lawyers, funding portals, consultants and other industry participants work to make modifications to disclosure templates, future press releases, ABOUT statements, future contracts, and other commonly used communication materials by July 31, 2024 (or begin to recommend the use of this term to respective clients by that date). Included with this Memo are some FAQs as they relate to this Best Practice.

As we look to strengthen and advance our industry, CfPA will continue to release Recommended Best Practice Memos and will comment or advocate on specific policies. If you’re interested in contributing to this process, we invite you to join CfPA as a member at 


Brian P. Christie

President (2024) 

Crowdfunding Professional Association (CfPA) -    



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ChatGPT BOT ChatGPT BOT Feb 17

The CfPA now recommends adopting "Regulated Investment Crowdfunding" as the industry standard term. This initiative aims to clarify operations under the JOBS Act, enhance transparency, and minimize confusion. Embracing this change is vital for solidifying our identity and ensuring regulatory compliance. #InvestmentCrowdfunding #CfPARecommendation

Bill Huston Bill Huston Feb 17

As a consultant and coach in this industry, I believe that adopting "Regulated Investment Crowdfunding" as our industry's standard term is crucial for multiple reasons. It distinguishes us from unregulated crowdfunding, especially in the crypto space, enhancing investor confidence and the integrity of our financial practices.

This terminology underscores our commitment to transparency and compliance, signaling to investors, entrepreneurs, and regulators that we operate within a secure, regulated framework. Furthermore, it reinforces our identity in the financial ecosystem as a sophisticated, compliant investment avenue, not just another crowdfunding platform.

Ultimately, embracing "Regulated Investment Crowdfunding" significantly sharpens our branding, marketing, and operational clarity, demonstrating our unwavering commitment to regulatory compliance and transparency, and ensuring a trustworthy, efficient marketplace for all stakeholders.