tax deductible crowd funding... 18% off the top to the org though..
http://www.usaprojects.org/
just FYI:
http://www.usaprojects.org/
just FYI:
tax deductible crowd funding
- Thread starter wheatgrinder
- Start date
Yeah there's a women's film organization that will let some projects under their not-for-profit/tax-exempt umbrella, too.
Definitely something to keep in mind.
Definitely something to keep in mind.
wheatgrinder, correct me if I'm wrong, but if your film is tax deductible, you can't keep any of the profits (like there would be any ) .
) .
In this case the film itself isn't non-profit, the organization collecting the money is. They collect it as a non-profit and distribute the money to projects which don't have to be non-profit, so whatever you earn later is still yours to keep.
Even if the film was somehow done as a non-profit you could probably still keep most of the profits - you just need to structure it so that the profit goes towards salaries for everyone involved, becoming a business expense rather than a profit. Set up the salaries as deferred, then pay them as the money comes in - maybe if the film really blew up you'd have profits you couldn't keep (once the deferred payments were all met) but the likelihood of that happening isn't very high. In any case I don't see much reason to structure a film project as non-profit in the first place unless your primary goal is to use the film to raise money for a cause. Better to just try and find a fiscal sponsor in most cases.
Even if the film was somehow done as a non-profit you could probably still keep most of the profits - you just need to structure it so that the profit goes towards salaries for everyone involved, becoming a business expense rather than a profit. Set up the salaries as deferred, then pay them as the money comes in - maybe if the film really blew up you'd have profits you couldn't keep (once the deferred payments were all met) but the likelihood of that happening isn't very high. In any case I don't see much reason to structure a film project as non-profit in the first place unless your primary goal is to use the film to raise money for a cause. Better to just try and find a fiscal sponsor in most cases.
I wasn't considering it myself, I just ran across a project that was so I reported back here...
that said, I think the non-profit question was answered correctly, it matches what they say on the web site..
Why use it and lose 18% is the big question?
How much does indiegogo and kickstarter skim off the top?
that said, I think the non-profit question was answered correctly, it matches what they say on the web site..
Why use it and lose 18% is the big question?
How much does indiegogo and kickstarter skim off the top?
They're both 4-5% for completed projects, plus another 3-4% in credit card processing fees. For Indiegogo projects that don't hit their goals the base rate goes up to 9%.
The usual reason to have a fiscal sponsor is to become elegible for money that is earmarked for non-profits. For instance, we've got one for the current documentary I'm working on so that we can apply for grants that require it. The sponsoring non-profit may also work to raise money for your project since they stand to benefit from the donations as well.
Doing it for a crowdfunding effort seems odd - most small donations won't be enough for the donors to deduct anything anyway, so it seems more appropriate for funders who are going to donate amounts of several thousand or more.
The usual reason to have a fiscal sponsor is to become elegible for money that is earmarked for non-profits. For instance, we've got one for the current documentary I'm working on so that we can apply for grants that require it. The sponsoring non-profit may also work to raise money for your project since they stand to benefit from the donations as well.
Doing it for a crowdfunding effort seems odd - most small donations won't be enough for the donors to deduct anything anyway, so it seems more appropriate for funders who are going to donate amounts of several thousand or more.