Kickstarter is a great tool for musicians (and other artists) that want to raise money from their friends and fans for an upcoming project. For instance, James Low just successfully raised the money he needs to do a proper release of his new CD, Whiskey Farmer. Pre-funding not only helps the artist but gives the contributors valuable gifts from the artist depending on what is contributed - like an early download of the CD to a full concert in your living room (along with posters, tee shirts, etc, etc).
Another of my favorite artists in town, Tony Furtado, launched a campaign last week to raise money to put together a live video for DVD distribution. Check out the video and head over to Tony's Kickstarter page to help him meet his goal.
Maybe he'll even make you some cupcakes!