Documentary Funding | Do I Need An Organization To Accept Funds?
(Los Angeles, CA USA)
We are in the process of creating a documentary. We'd like to take donations for the costs associated with creating our documentary. Do we need to set up a business entity in order to do this, or can we just take donations and use the money for the documentary - what happens if there is excess funds (doubtful)? If we need to set up a business entity, would it make sense to set up a non-profit organization or just a standard LLC?
Thanks so much,
Crista & Christine
Desktop Documentaries | AnswerFrom: Faith Fuller (publisher)
You actually need to do both:
You need to create a business entity (LLC) for your production company and, instead of creating your own non-profit, you should partner with a "fiscal sponsor" so that your business can take donations for your documentary. Don't worry about getting "too many donations" as that never happens. :)
If you anticipate making more than one documentary, then creating your own non-profit should be a consideration.
Here are two articles that should answer all your questions:I'm Working On My First Documentary. Do I Need To Set Up An LLC?What Is A Fiscal Sponsor and Why Do I Need One?
And a few additional resources as you begin to think about raising funds for your documentary.Documentary Fundraising TipsDocumentary Film GrantsDocumentary Fundraising Tool Kit