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Film Company

    • 2 posts
    April 27, 2009 12:07 PM EDT
    I`ve been looking at gobignetwork.com but have some doubts (partially due to the upfront fee).

    I started a film company, we have two films, both on IMDB, both award winners at festivals (one won best mini-feature this past weekend), however they`re both mini-features/shorts. In order to expand into the realm of feature film (what you usually see in the cinema), we need the money for equipment/payroll/etc. 

    As a member of the Austin Film Society, I`m under their 501(c)(3) umbrella making all donations tax-deductible -- how much will that really help, though? 

    For 100-200K, we can make a competitive film, but we need closer to the 750K-1M mark to make a heavyweight.

    I`m offering extra incentives besides the 501(c)(3) -- film/IMDB credit, passes to the screening, production tours, post-screening parties, the ability to be an extra, etc.

    I just can`t tell if it`s enough. Are there other good places to look for angels (VCs probably aren`t as interested in startup film companies, I`d guess)?
    • 2 posts
    April 27, 2009 1:02 PM EDT
    Hi Robert,

    I`ve not turned in any non for profit paperwork. My company does not have a mission statement that is purely for public good. 

    However, as an individual artist, I am able to fall under the fiscal sponsorship of a 501(c)(3). One of the things I`m trying to discern is whether or not this fiscal sponsorship will provide greater funding than, say, a C-corporation. 

    Because of the nature of the line of work, it seems to fall into a grey-ish area: as an individual artist, I`m under the 501c3 umbrella; as a film company, we are a for profit company.
    • 927 posts
    April 27, 2009 12:25 PM EDT

    redsoxny,

    First of all, you will need to choose whether you want to create a for profit enterprise or be a not for profit.

    People and companies support charitable organizations for their own reasons - but those reasons are quite different than the reasons why they invest in a business.

    By law, you cannot sell ownership in a not for profit entity.

     

     

    ---
    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
    info@bizgrowthmasters.com


    • 927 posts
    April 27, 2009 1:14 PM EDT
    Generally speaking, if you are personally producing films for the "public good" - the not for profit association may be an asset.
     
    In the for profit category, you may find it beneficial to separate the capital requirements for the company from those needed for a specific film.
     
    If you want to delve into your specific situation in confidence, send me a PM or contact me directly.

    ---
    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
    info@bizgrowthmasters.com