About HotelReel Fiscal Sponsorship

https://nonprofitlawblog.com/fiscal-sponsorship-and-films/

https://nonprofitlawblog.com/fiscal-sponsorship-and-films-part-ii/

Fiscal Sponsorship is used primarily when a film or media-related project wants to secure funding from individual, foundation, government or corporate sources that give only to nonprofit organizations with IRS tax-exempt status. To be considered exempt, an organization must hold a current 501(c)(3) certificate from the IRS.

Rather than attempt to secure tax-exempt status, individual filmmakers may contract with a fiscal sponsor to extend tax-exempt status to that specific project. As a Fiscal Sponsor, The Film Collaborative serves as a conduit for financial resources and provides support and oversight for independently produced projects.

TFC’s Fiscal Sponsorship program provides financial services, competitive administrative fees, and the dependability of working with an established filmmaker support organization.

TFC uses Fiscal Sponsorship Model C: Pre-Approved Grant Relationship in accordance with the guidelines provided by the National Network of Fiscal Sponsors.

In the Pre-Approved Grant Relationship fiscal sponsorship model, the fiscally sponsored project does not become a program belonging to the sponsor but is a separate entity responsible for managing its own tax reporting and liability issues.

TFC does not take ownership of any part of the results of the project’s work. As fiscal sponsor, TFC assures that the project will use the grant funds received to accomplish the ends described in the proposal. 

This is the model of fiscal sponsorship primarily utilized in the arts.

TFC charges an administrative fee for funds granted through our Fiscal Sponsorship program. This 5% fee covers the cost of running the program and managing donations to your project, including bookkeeping, distribution of funds, reporting to funders, maintaining the website, etc.

TFC’s Fiscal Sponsorship program covers the following:

Documentary feature & short films and other works of nonfiction.

Narrative feature & short films and other narrative works (Our Comedy Feature Film Fits Here)

Multi-media projects with film or video as a primary component of the work. 

Film events such as film festivals or screening series

TFC gives priority to projects that have a solid plan to utilize the fiscal sponsorship program for all or a portion of the project budget. We work with projects that plan to raise $25,000 or more via fiscal sponsorship.

Fees:

TFC Contributor level membership is required to participate in the program, $80 annual fee

A one-time Fiscal Sponsorship Application Fee of $45
Admin fee of 5% on funds raised

Online donations incur a credit card processing fee of 2.2% plus $0.30 for each transaction. This fee is passed on from the credit card processor and is not a TFC fee. Online donors have the option of covering the Paypal fee.

Eligibility:

Project must represent an artistic contribution to the film or media art form

The applicant must be a producer and/or director of the project, must hold artistic, budgetary, and editorial control, and must own the copyright of the proposed project.

The project may be in any stage of development, production, post production or distribution.

Projects must be seeking funding from individual, foundation, government or corporate sources that give only to nonprofit organizations with IRS tax-exempt status.

Crowdfunding campaigns to be combined with fiscal sponsorship are also eligible.

Applicant does not need to live in the United States or be a U.S. citizen to apply for fiscal sponsorship.

Elements we look for in a project we will sponsor:

Project tells a compelling story.

Project takes an innovative approach to the subject matter

Project director has the access required to tell the story in a compelling way.

A well-written proposal that follows the application instructions and gives a clear picture of the film’s story and themes.

Project director and/or team are experienced and capable of completing the project.

Audience is identified with a realistic plan for reaching and engaging that audience.

Project has a realistic and well-planned fundraising strategy for using fiscal sponsorship, fundraising outside of the fiscal sponsorship program, and a reasonable chance of raising sufficient funds to complete the project.

Industry standard formatted budget is thorough and realistic.

Project Approval:

Upon approval of your project the following will be requested. Further information and instructions will be included in follow-up correspondence tailored to your project’s unique needs.

Become a TFC member at the Contributor level

Sign Fiscal Sponsorship Agreement stating that you will:

Keep track of all expenses connected with the project

Spend donated funds on project expenses included in the budget approved by The Film Collaborative

Complete and return annual Project Status Report

Comply with all funder reporting requirements, on time, as per the funder’s schedule

Maintain TFC membership at the Contributor level or higher for the length of the sponsorship

Provide a signed W9 form for U.S. filmmakers. International filmmakers will sign an Out of Country agreement or W8 form

Verify the names of the primary and secondary contacts for the project

Provide content for your webpage. Examples can be found here.

Provide bank account info to receive funds

Provide social media links (if applicable)

Verify budget amounts

The Film Collaborative follows the best practice guidelines from the National Network of Fiscal Sponsors. The NNFS promotes the understanding and professional practice of fiscal sponsorship.