Raising private equity is extremely difficult, grants are scarce, and crowdfunding is a highly competitive landscape. But there is a unicorn off in the distance that may work for your next project. Hear me out...
Several years ago, I shot a short doc covering a complex and emotionally charged social issue. I then worked with the subjects of the doc and obtained the rights for the development of a dramatic feature adaptation of their story. The resulting script garnered several awards and a lot of buzz, but the buzz is where it stopped.
Dramas are tough to pitch and produce. Social issue indie dramas... Even tougher. The evidence for a fiscal return on dramatic features without an A-list star attached is scarce. There are outliers of course, but any equity investor worth their weight that isn't your great aunt will want to see a clear path. Hell, for my project, I even had partial funding and a BAFTA-winning lead attached, but the thing just dissolved.
"Why not partner with a non-profit?" people would eagerly suggest. If I heard it once, I heard it a thousand times. Sure, it makes sense in theory. Like minds, an aligned vision... what could go wrong? In my experience, most NP's that I met with couldn't see the value in a small indie drama as a way to promote their agenda. Trust me... I tried every conceivable angle, but in the end... non-profits are very protective of their donor base and of every dollar they bring in. There's virtually no room for a "roll of the dice."
But, just as I was hanging up my spurs on this project, I heard about a fiscal sponsorship opportunity through my local film society. Here's how it worked for me...
• My local Film Society is a registered 501 (c) (3) with a stated mission to promote and grow the local film ecosystem.
• They offer an avenue for filmmakers to partner with them and use their non-profit status to solicit donations to the film society on behalf of the sponsored project. Meaning, Someone interested in making a tax-deductable donation to a film project can do so through the film society.
• The donor gets the tax write off, the film society takes an admin fee of 6% from every donation, and the remainder is kept in escrow for eventual withdraw and use by the filmmaker to make their project. It's that simple.
Of course the film project must exist as a registered LLC with the state and any moneys withdrawn for the project in any given year will be taxed, but if you follow the rules and make fundraising a mission, you could just raise enough to put your script on the screen. Plus... and this is the best part... there are no investors with whom you need to split profits (providing you make a great film and distribute effectively).
In complete transparency, I raised just under $10K in donations through the fiscal sponsorship agreement without a ton of effort. I have a couple of other big projects that have now taken precedent but I plan to relaunch this campaign and will of course keep you all posted on the progress.
So, do any of you have experience with a fiscal sponsor? Let us know in the comments below. Success stories are the best stories!
Hi, Oana Sarban. I tried to make two feature films way back, and the finance bit that gave me the most grief was trying to find investors.
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And judging by the answer, you didn't manage to find investors and therefore the feature films were not made in the end. Was that because you couldn't find interested people or you found some but they had other reasons why they didn't invest?
I couldn't find investors, Oana Sarban. That was one of the reasons the films didn't get made.