Fiscal Sponsorship: Commercial vs. Non-Commercial????

Spinner,

Sounds like your piece falls into that 'quasi-state' of artertainment. I haven't read up on the definition of a non-profit, lately, but I seem to remember that a co-op of three artists can form one legitimately. You would then be eligible to apply for the same grants as say your local museum (your project would still have to meet the funding agency's criteria, but you would be acting as the agent for the non-profit rather than an individual artist appyling).
The grants which come to mind under that consideration would be National Endowment for the Humanities (they grant to individuals and non-profits) and the National Endowment for the Arts (sadly, they only grant to organizations, not individuals anymore).

Have you tried public television's 'Open Call' at ITVS? You can submit your W-i-p along with previous examples of your work for funding? It's worth a try and I believe the next deadline is coming up in August.


*Perhaps a few of the artists here would consider becoming part of a co-op*

A couple of points to consider - and I may have mentioned these in another thread but my memory isn't... um... ah... what was I saying?

Oh right. In the U.S. the primary difference between a "for profit" and "non-profit" corporation is issuing stock. For-profit corporations issue stock (and typically pay dividends on that stock) and non-profits don't issue stock and don't pay dividends.

Depending on the wording of your Articles of Organization (a legal document filed with your Secretary of State's Office) either entity can own property, pay wages, buy, sell, lease, sign notes of credit, etc.

Dissolution of the corporation (shutting it down) is a little different, too. A non-profit must petition a judge to allow the dissolution and all property owned by the corporation must be donated to other non-profits or the government.

The corporate structure is separate from tax exempt status, or being a charitable organization. That's determined by the IRS which, if successful, grants your entity 501(c)(3) status - which is typically necessary to obtain grants. It also allows your corporation to give "charitable receipts" so donations are tax deductible.

There's some special wording that needs to go into your Articles of Organization - key elements the IRS looks for in making the 501(c)(3) determination.

Let me make the disclaimer: I am not a lawyer and this posting does not constitute legal advice.

I wrote my own Articles of Organization for Dedham Digital Studio and submitted them to the Massachusetts Secretary of State's Office. It cost $40 to file (online... wow) and the Articles were approved in a couple of days.

I put in the key elements for 501(c)(3) status but took too long to file with the IRS. They say you can apply up to a year after incorporation. Oh, as far as I know, only non-profits can be 501(c)(3).

So - a non-profit corporation isn't necessarily tax exempt 501(c)(3)... but only a non-profit can apply for that status. Non-profit doesn't mean you can't make money... but you can't issue stock or pay dividends. Think of PBS as the ultimate non-profit corporation in the media business... gets lots of donations, funding from the government, commercial free (arguably) and spends lots of money on production.

bird said:

The grants which come to mind under that consideration would be National Endowment for the Humanities (they grant to individuals and non-profits) and the National Endowment for the Arts (sadly, they only grant to organizations, not individuals anymore).

Have you tried public television's 'Open Call' at ITVS? You can submit your W-i-p along with previous examples of your work for funding? It's worth a try and I believe the next deadline is coming up in August.
*

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...well, first, I was under the understanding that the National Endowment for the Humanities did not fund documentaries. It was one of the first things I found about them and was re-directed to the NEA.

...about ITVS, I am a little wary of my project going to tv first. I would like a theatrical release initially, then heck yeah it can go to tv. My concern comes from Juli Dash's 'Daughters of the Dust'. Somehow that gorgeous film could not be considered for an oscar because it was on tv first. (thats the way I understood it, broke my heart) If you have ever seen that film ohmigod! Its the film that made me want to be a filmmaker. Would ITVS allow me a theatrical release before having to send the film to pbs?...

...incidently, I guess I know its lofty to think that I could be nominated for an oscar, but hey, I don't want to be out of the running because of something that has nothing to do with the quality of the film...

Oh right. In the U.S. the primary difference between a "for profit" and "non-profit" corporation is issuing stock. For-profit corporations issue stock (and typically pay dividends on that stock) and non-profits don't issue stock and don't pay dividends.

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...thanks for the info and it does clear things up, but that's not exactly the question I had....

The way it was explained to me is this: commercial means that you expect the film to go to theaters and possibly get a national release and possibly see some return on your project; non-commercial means that you have educational intentions, the film would go to pbs, be used as an educational tool...

..hey, I'm not a teacher (at least not in the traditional sense) and I don't think I should have to come up with curricula. I think I need to find a way to show sponsors that my documentary does fit the criteria.

...(sniff) I jus' wanna make my movie Is that so wrong??? ...and I don't want to let down some musicians who are putting thier faith in an unknown director whos biggest problem seems to be funding...

--spinner

well, first, I was under the understanding that the National Endowment for the Humanities did not fund documentaries. It was one of the first things I found about them and was re-directed to the NEA.

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Sorry if I sent you on a wild goose chase. There are so many fellowships offered throught the NEH that I think the app process to get a documenatry funded would need to be creatively spun. I've seen many doc's that list the NEH as a supporting agency. As for them directing you to the NEA, my understanding was they cut off grants to individuals after (Serrano or ?) plunged a crucifix into a jar of urine. I imagine this is why you considered fiscal sponsership so that your project could be submitted through said eligible institution? I think that's a wise plan and just because one turned you down, don't be discouraged. Google 'non-profits, arts' or 'fiscal sponsership'. Locally we had one agency which simply charged a set-up fee which would have allowed you to say you had sponsership, but the requirements were that if you ever found funding, a certain percentage had to go back to the sponser institution.

...about ITVS, I am a little wary of my project going to tv first. I would like a theatrical release initially, then heck yeah it can go to tv. My concern comes from Juli Dash's 'Daughters of the Dust'. Somehow that gorgeous film could not be considered for an oscar because it was on tv first. (thats the way I understood it, broke my heart) If you have ever seen that film ohmigod! Its the film that made me want to be a filmmaker. Would ITVS allow me a theatrical release before having to send the film to pbs?...

Click to expand...

For the ITVS 'Open Call', I beleive the 'producer' retains the right to distribute in ancillary markets not adminstered by ITVS. But that, i would imagine, applies after it's public broadcast debut. (I'm not a lawyer either , so take it with a grain of salt ) There is another line which reads: ITVS reserves the right to negotiate other contractual terms as needed'. My feeling is that if your project gets funding through ITVS and upon completetion if the 'powers that be' at ITVS feel you have Oscar-caliber material, it would be in their best interest to allow you (the producer) to follow the appropriate Oscar trial. This is all speculative of course and only my opinion. You could still apply and if awarded a grant you can always refuse if the stipulations aren't agreeable. *and it's a good thing to set your goals high*

Steve,

Great post! I think I'll do some research on starting a non-profit. Any good references, books, links?

bird said:

Sorry if I sent you on a wild goose chase. There are so many fellowships offered throught the NEH that I think the app process to get a documenatry funded would need to be creatively spun. I've seen many doc's that list the NEH as a supporting agency. As for them directing you to the NEA, my understanding was they cut off grants to individuals after (Serrano or ?) plunged a crucifix into a jar of urine. :

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...I remember that, I thought it was Mapplethorpe(sp) that did that. Great, mess everything up for the rest of us

...I think I will go back to NEH and see what I can find....Oh, what the hell, the worst they could do is say no...not that that isn't pretty bad...I'll look into ITVS too, I think I may have missed that deadline....

...once more into the funding breach....

--spinner

There are a number of grants, gifts and other sources of funding.

Look for businesses related to the content of your documentary. Ask if they'll help sponsor for a mention in the credits.

If you're producing it locally, try going to local cumminty banks pitching the concept that it's a town/city based production - and ask for sponsorship.

My experience in fundraising (not extensive) is that, for "grateful acknowledgement" in the credits, local companies will help out and they don't care about commercial release of the film.

Clearly this approach works better for smaller budgets. But local companies also like to donate goods of services, too.

Don't give up the ship! Think a little creatively about funding. Don't look at a bottom line figure (I need $25,000 in cash to make this movie.) Consider alternate ways of obtaining (buy, lease, beg, borrow, but don't steal) materials.

SPaulovich said:

Look for businesses related to the content of your documentary. Ask if they'll help sponsor for a mention in the credits.

If you're producing it locally, try going to local cumminty banks pitching the concept that it's a town/city based production - and ask for sponsorship.

My experience in fundraising (not extensive) is that, for "grateful acknowledgement" in the credits, local companies will help out and they don't care about commercial release of the film..

Click to expand...

...I hadn't given that much thought but I think I will now...

...the credit in the film I have thought of and I am looking into the best way to do that.

--spinner

spinner said:

...I remember that, I thought it was Mapplethorpe(sp) that did that.

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It was Andres Serrano, for sure, with the "Piss Christ" photograph. It's actually a very interesting piece.

Robert Maplethorpe had his own furor over a series of photographs as well, with "The Perfect Moment". This was a retrospective show that covered much of his work from over the years. The defining image was of a naked man (facing away from from the camera) with what appeared to be a bullwhip inserted into his nethers.

...now back on topic, I guess...

....eeewwww!

--spinner