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Actually other projects have kickstarted, that’s not even the problem. It’s when they founded the studio and started paying themselves salaries it became a problem.

This, this, this.

It was always a for-profit venture. Regardless of the the Axanar team is saying now. They took Kickstarter funds from a fan film and create a for-profit business. They used the funds to create Axanar Studios, which they plan to use as a full production house and film school. If they used the funds to simply create a

^ This

The makers of Axanar are paying themselves salaries from their crowdfunded movie and wanted to use the money to set up a future, for-profit studio for the creators, and they were doing it on the back of fans of an established, copyrighted franchise which CBS, who own the TV rights (and Paramount, who own the movie

The problem is that they were using it to help fund a new studio. That sounds like for profit to me.

Keep in mind CBS is going after them because Axanar is no longer a “non-profit” production, since they are paying themselves with Kickstarter money and planning on using funds to open their own production company.