And I'm pretty sure once the filmmakers receive their money, they're under some sort of contract that requires a finished product. So no, its not some kind of black hole.
I’m curious about this.
I ask for $5,000 on this website for a feature film called “SCAM”.
I get the five large, pay the site their commission, sing the contract
that requires a finished product and collect the, for discussion, $4,800.
Scenario one: I spend $1,000 making the feature but tell everyone
I spent the entire $4,800. Who checks and what do they do if the
prove I lied?
Scenario two: I start the project but in my ignorance of the filmmaking
process I discover that I do not have enough money to finish. My DP
drops out taking the tiny, non paid crew with her but I shoot a few
more days anyway - I really want to fulfill the contract. But it’s a mess
and the lead actors drop out. I cannot finish without recasting and
starting over and I don’t have the money to do that. Who checks on
the project? What happens to me if I am serious and dedicated but
in over my head? Do I have to pay back each person if I do not finish
the product?
Scenario three: I don’t make the movie at all. I spend the $4,800 on
a trip to Vegas. At what point is the contract put into play? Who checks
the progress of the product? What legal entity is responsible when it is
discovered I scammed the donors? Do I get a letter from a law firm
demanding I fulfill the contract I signed? If I ignore it and I prosecuted
in court?
How, exactly, is some sort of contract enforced?