film finance

Doc U, the International Documentary Association’s series of educational seminars and workshops for aspiring and experienced documentary filmmakers, is sponsoring another great event on Wednesday, March 21, 2012 at The Cinefamily inLos Angeles.  This seminar is called The Business Side of Documentary Filmmaking and it features moderator Lisa Leeman (One Lucky Elephant, Crazy Wisdom: The Life and Times of Chogyam Trunga), who will be discussing the ins and outs of accounting, business management and tax reporting along with Chris Perez, Associate at Donaldson & Callif, Jeffrey Schwarz from Automat Pictures, Lee Storey (Smile ‘Till It Hurts: The Up With People Story), and Michael Garelick, ATA, ATP, CEO/President, Garelick Business Management, Inc.

Doors open at 7pm with the discussion and audience Q&A being held from 7:30 – 9:00pm.  The Cinefamily is located at611 N. Fairfax Avenue in Los Angeles and there will be a wine reception immediately following at the venue’s backyard Spanish patio. Tickets for IDA members are $15.00, IDA student members $5.00 and for Non-Members $20.00 and seating is limited. 

For those who are unaware of the programs sponsored by the IDA, they are taught by artists and industry experts and participants receive vital training and insight on various topics including: fundraising, distribution, licensing, marketing and business tactics.  Their mission is to support documentary filmmakers and further the art of the documentary.  Most of their events are held in either Los Angeles or New York, but they also offer a number of benefits that make it a worthwhile organization for anyone interested in documentary filmmaking to join.  One such perk is their Fiscal Sponsorship program, which started in 1998.  This is a formal arrangement in which a 501 ( c ) (3) public charity, agrees to sponsor a project that furthers our mission, for the purpose of fundraising through grants and donations.  This provides a viable alternative to starting your own nonprofit and lets you seek grants and solicit tax-deductible donations for your documentary by giving you the oversight, support and endorsement of the IDA.  Last year filmmakers using the program raised over 3 million dollars to get their documentaries made and seen.  The IDA works with films in all stages of production including outreach and distribution.  As Fiscal Sponsors they take no ownership of the filmmaker’s project nor do they infringe upon creative control or copyright or prevent you from future sales or profit or profit from your profit.  They seek to be as non-intrusive as possible in monitoring projects with their main goal being to assure that the money raised is being properly dispersed and used for the project as intended. 

Another program the IDA sponsors is the Pare Lorentz Documentary Fund which provides annual production grants totaling $75,000 to be used in the creation of original, independent documentary films that illuminate pressing issues in theUnited States.  Grants are made for up to 5 projects that tell and compelling story and focus on one of Pare Lorentz’s themes: the appropriate use of the natural environment, justice for all or the illumination of pressing social problems.  The fund supports full-length documentaries reflecting the spirit and nature of Pare Lorentz’s work with projects featuring objective research, artful storytelling, strong visual style, high production values, artistic writing, outstanding music composition along with skillful direction, camerawork and editing.  This program is made possible by The New York Community Trust and the deadline is April 23, 2012.

For information about the IDA and all of their programs visit their website at http://www.documentary.org/.

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For many independent filmmakers trying to raise funds in order to turn their production dreams into a reality crowdfunding is becoming a way of life and IndieGoGo and Kickstarter friends of the family.  There has been discussion amongst people I know as to which of the two programs is the better choice and I would have to say that I believe it depends on the individual project and the specific goals of the filmmakers involved.  First for a few facts:  IndieGoGo was launched first.in January 2008 at Sundance with Kickstarter debuting a year later.  Although both have many similarities there are a few key differences.  Kickstarter is an all or nothing proposition – if you fail to meet the goal then you don’t get to keep any of the money and it is refunded to the donors.  If the project is fully funded then a 5% fee is charged.  There is also an additional fee which can be up to 5% from Amazon payments for processing the credit cards.  On the other hand, IndieGoGo allows users to keep the funds even if the goal isn’t met.  If it is they charge 4% for their services and if it isn’t that number moves up to 9%.

Aside from the financial considerations, there are also a few other fundamental differences.  Kickstarter is a curated platform and any projects posted on the site must be approved beforehand.  The campaign must be for an actual project with a start and finishing point and not be for a cause.  Projects also have to fit into a specified category such as arts, film or some form of writing and offer rewards to the backers that are part of the incentive for providing funding.  Because of the accountability requirements, Kickstarter has developed an excellent reputation and has become very well known.  It has been estimated that approximately 50% of their campaigns result in success.  With IndieGoGo there is no approval process or waiting period, so you can post a project at any time and begin raising funds.  They also allow business funding, so you can start a campaign for causes and entrepreneurial pursuits as well as creative endeavors.  Also, although you only pay IndieGoGo a 4% fee if you are fully funded, you also pay third-party payment processor fees of up to 3% for check and credit card donations and the 15 cent plus 2.9% fee for those using PayPal.  One more thing to keep in mind is that although IndieGoGo does allow you to collect on donations whether or not the funding goal is met, there is the 9% fee charged, so you want to make sure you have enough capital left over to fulfill your perks and move ahead with your project. 

Before deciding which of these platforms will work best for your project, I recommend going to their websites and checking them out for yourself and then contacting friends who have used them.  If you don’t know anyone personally who has raised cash this way, turn to your social networking contacts on Twitter and Facebook.  I would reach out to people who have been both successful and who have not met their goals so that you can tailor your campaign to give you the best possible chance at success.

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The Latest Film Tax Credit Info from The Incentives Office

January 24, 2012

In view of the constant changes happening with regard to state tax film credits it’s great to receive frequent updates from The Incentives Office.  For those who are unfamiliar with this organization, they help monetize soft money by providing estimates and vetting anticipated tax credits or rebates for producers and lenders.  They are known for [...]

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The “Financing Your Film” Panel is Coming to Sundance

January 17, 2012

If you are one of the lucky people headed to the Sundance Film Festival and are interested in attending a panel discussion that could help you with your filmmaking career be sure to check out “Financing Your Film: Avoiding the Pitfalls from Business Plan to Distribution”, which will be held on Monday, January 23, 2012 from 1:30pm-4:00pm [...]

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A Few Thoughts About Vegas Cine Fest

September 4, 2011

Now that Vegas Cine Fest is over I have some thoughts about festivals I thought I’d share.   For one thing, the more lead time you have to plan the better.  Considering that so many issues for running this event came up and were dealt with within a matter of weeks, the few number of people [...]

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Here’s the Buzz on Either/Or Films – Part 2

May 18, 2011

In Part 2 of this Filmmakers Notebook Q&A  Buzz McLaughlin from Either/Or Films, letting us in on the 411 about what it’s really like to be an Executive Producer. Since you have been the Executive Producer on your projects what recommendations would you make to filmmakers looking to approach investors?  Ah, the old Catch 22 [...]

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028 Filmmaker Josh Cohen is Fighting to Bring Tax Incentives to Nevada

May 10, 2011

Filmmakers Notebook spent some time at Theatre7 along with John Donovan speaking with filmmaker Josh Cohen about the effort he’s spearheading to bring tax incentives to Nevada, which is currently one of six that doesn’t offer a program.  So far, Josh, who is the owner of Las Vegas based Cohencidence Productions and the screenwriter/producer of the [...]

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Producing, Directing & Writing: Filmmaker Angelo Bell Does it All – Part 2

December 4, 2010

Part 2 of the Filmmakers Notebook Q&A with the talented and insightful filmmaker, Angelo Bell.  As I mentioned before, it is not only Angelo’s creativity and abilities that made me want to find out more about him and his work, but his willingness to share his knowledge with others, so here he is once again offering [...]

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Writing, Producing and Directing: Filmmaker Angelo Bell Does It All!

December 1, 2010

The first time I heard of Angelo Bell was on Twitter.  I read a couple of his tweets about writing screenplays and wanted to know more.  Here was a filmmaker with wit and wisdom who was willing to share both with friends and strangers alike via social media.  Very quickly, I realized how much this man [...]

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Filmmaker Heath Tait: Portrait of a Vancouver Vagabond – Part 3

November 28, 2010

Part 3 and the final installment of the Filmmakers Notebook Q&A with Canadian Filmmaker Heath Tait, who has produced the award winning documentary “Vancouver Vagabond”. You paint a different picture of what it’s like to be a Canadian Filmmaker from the one Americans are often presented with, so what recommendations would you make to anyone [...]

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