fiscal sponsorship + crowdfunding = $$ for creative projects

Download Fiscal Sponsorship + Crowdfunding = $$ for Creative Projects

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Presented by Dianne Debicella - Program Director, Fiscal Sponsorship.Presentation covers:Definition of fiscal sponsorship and crowdfunding, Taking advantage of the fiscal sponsorship program. Review of the leading crowdfunding platforms. Keys to crowdfunding success, Benefits of crowdfunding, and Crowdfunding myths.

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  • 1.Fractured Atlas Presents:Fiscal Sponsorship + Crowdfunding= $$ for Creative ProjectsDianne Debicella - Program Director, Fiscal Sponsorship

2. What were going to cover: Definition of fiscal sponsorship and crowdfunding Taking advantage of the fiscal sponsorship program Review of the leading crowdfunding platforms Keys to crowdfunding success Benefits of crowdfunding Crowdfunding myths 3. But First Nice to Meet You! 4. What exactly is a fiscal sponsorship? Fiscal sponsorship is a legal agreement between an artist or arts organization and a 501(c)(3) charity (like Fractured Atlas) It allows the sponsee to raise tax-deductible contributions through individuals and grants Funds are given to the sponsor and are restricted to the specific purpose and use of the sponsee Without getting tax exempt status, you can use fiscal sponsorship to solicit contributions from individuals and institutional funding agencies 5. Benefits of the Fractured Atlas FiscalSponsorship Program Fundraising: having the ability to give donors a tax-deductible receiptfor their contribution of cash (checks or credit card) or tangible items Grants: having access to foundations that only allow tax-exemptcharities to apply Also, with FA fiscal sponsorship, you can gain access to:Nonprofit rates with vendors and companies who offer themReview of all grants and solicitation materials 6. Arts Fiscal Sponsors: Best Practices All fiscal sponsors charge a fee, usually 5 - 10%. FAs fee is 6% The sponsor provides oversight for the funds that are raised and how they are spent (May request receipts, invoices, contracts) Most sponsors, including FA, will never own any of your work, or any of the rights to it Many sponsors, including FA, will review grant proposals to make sure that they are appropriate and that the foundations are good matches All fiscal sponsors should have some sort of written agreement for the fiscal sponsorship arrangement 7. Who Can Use the FA Fiscal SponsorshipProgram? Individuals and organizations with a US social security number or Federal Tax ID(also called an EIN) The individual or organization must have an artistic focus or strong arts component Individuals must have a project in mind or ongoing work and creativedevelopment Organizations that are waiting on their own 501c3 status, or who are not planningon filing for their own status The potential project must NOT have investors or commercial intent; they shouldbe nonprofit and have a charitable purpose (But please pay yourself if you can!) 8. So how do you get sponsored? 9. Applying for Fiscal Sponsorship Become a member of Fractured Atlas Carefully review the agreement, eligibility, benefits, and policies and procedures Submit the application Deadline is the last day of the month, approvals are sent no later than the 15th of the following month We do not judge the quality of your work and simply need to see that it is artistic and nonprofit in nature 10. Revenue: The BreakdownFrom How the United States Funds the Arts www.nea.gov/pub/how.pdf 11. So what is crowdfundingAccording to Wikipedia:It is the collective cooperation, attention and trust by people whonetwork and pool their money together, usually via the Internet, in orderto support efforts initiated by other people or organizations. 12. Who are the providers? www.kickstarter.com www.IndieGoGo.com www.rockethub.comThere are others, but these are the major players right now. 13. Picking the Crowdfunding Site for you 14. Coming up with your Game Plan Preliminary project planning Choosing the Crowdfunding platform thats right for you Setting up your campaign Running your campaign 15. First things First Budgets: (Without a budget, how would you set your goal?) Be realistic with your budget. Always allow ten percent extra. Try to keep your budget indie (read: small). Keep expenses reasonable, but dont compromise quality.Now that you know your expenses, you can figure out what your goal is. 16. First things First Defining your project Learn how to talk to other people about your project. Remember, general projects dont get funded. Start thinking about time frames. Think about why youre different. 17. OK. Now what?Logistics: Pick the crowdfunding site you will use. You need to set up an account to use any of these sites. Study the payment options. Read the terms of service or agreement. 18. Now what continued.Content: Write an amazing (yet concise) description of your project. Get your Pitch Clip up on YouTube or Vimeo. 19. Now what continued.Timing and Goals: Set your time frame. Set your goal. Dont set up two crowd funding campaigns. 20. Donor Perks Donor perks are really the heart of crowdfunding. Determine perks that you can afford and correlate them to a reasonable givinglevel. Remember, you will have to email or mail these perks, and get donor mailinginformation. Average donation amounts are around $70 dollars. Need a boost? 21. Perks, continued. Youll probably only get a few heavy-hitter donors, folks whodonate above $500. But their perk should be EXTRA special.There should be cache for the special few giving that much. Perks should get more personalized and more limited as thegiving level goes up. Your perks can set you apart. 22. Audience BuildingTime to sit back and relax, right? Nope. Invite Friends Use the widget tools Facebook Dont forget Twitter, Myspace, Tumblr, etc. Talk to bloggers, organizations, and other folks who are interested in your topic. Keep your content current!Some people find that this is a full time job. Be prepared. 23. Dont forget your manners. Each crowdfunding website will have a way for you to send your thanks to yourdonors automatically. Personalize the thanks to your donors if you can. For substantial donors, make sure to send a card with your perk items. You neverknow when youll be fundraising again! 24. Crowdfunding myths Random people WILL contribute to my campaign. Its easy, Im gonna sit here and do nuthin Post it, and they will come. Diamonds for donors Huge goals = huge donations! 25. Conclusions Send a thank you letter before cashing a donation check (thank before you bank) Prepare options/customized levels of giving for individual and corporate donors Keep current promotional materials on hand at all times (and business cards in your pocket...you never know who youre going to meet!) Keep all funding sources & potential funding sources informed about progress & events Apply for grants until you are ready (seriously folks, would you jump into the ocean without knowing how to swim?!) Give up after only one year - this is long-term work that requires continuous commitment. Crowdfunding is a TON of work and is not for everyone. Crowdfunding is a great way to raise seed money and market your work 26. Learn more about Fractured Atlas Fiscal sponsorship: http://www.fracturedatlas.org/site/fiscal/ Call us at 212-277-8020 Email us at support@fracturedatlas.org Contact us to learn more about our partnership with IndieGoGo andRockethub. 27. Additional Resources Chronicle of Philanthropy: www.philanthropy.com Philanthropy News Digest: www.fdncenter.org/pnd Wikipedia on 501(c)(3): www.en.wikipedia.org/wiki/501(c)(3) IRS Website on Exempt Organizations: www.irs.gov/eo 28. Book recommendations The Only Grant-Writing Book Youll Ever Need: Top Grant Writers and Grant Givers Share Their Secrets! by Ellen Karsh and Arlen Sue Fox The Foundation Centers Guide to Proposal Writing by Jane C Geever The Budget-Building Book for Nonprofits: A Step-by-Step Guide for Managers and Boards by Murray DropkinTo contact us with specific questions, or to request a PDF of this presentation... support@fracturedatlas.org 29. Any questions?Call us at 212-277-8020Email us at support@fracturedatlas.org

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