What does it mean to be tax-exempt and how does that positively, or negatively, impact how much money you can raise for your film? There are film organizations, such as the International Documentary Association (IDA) and Filmmakers Alliance that have fiscal sponsorship programs as part of their services to members. What this means is that you can attach a non-profit organization to your project and utilize their 501c(3) status (see below on what that might mean). They act as an oversight partner and will charge a small percentage, usually 5%, for private and foundation contributions, and a fee starting from 5%, but not exceeding 8.25%, for governmental awards to cover the administration costs of monitoring the monies granted in connection with sponsored projects.

By way of example, Polish-born filmmaker, Marzena Grzegorczyk, sought out Filmmakers Alliance to be a fiscal partner to raise money to fund her feature, Sex Life of Savages. You can visit adardor.com to see how she set up her fundraising web site for the film. The site includes a blog and payment information on where you can send your donation, accepting check or credit card. Filmmakers Alliance doesn’t yet have any kind of PayPal system, but they’re working on it. Marzena hopes that they set it up soon. Although based in L.A., like most filmmakers, she travels extensively and needs the ease and accessibility of a service like that.

I asked Marzena what the motivating factors were in deciding to embark on a fiscal sponsor relationship with a non-profit or 501c(3) entity. (The tax code from the IRS on this is pretty thick going, but basically a foundation that has this status exists on public support and some funds from income from investments and endowments. This offers the potential supporter to deduct his/her “contribution” representing up to 50% of the donor’s adjusted gross income. Depending on whether you’re an individual donor or a corporation, the percentage varies.) Marzena decided to start this type of fundraising because “I wanted to push my project forward. My script has been circulating among industry people for a few months. It generated interest, but so far no producing/financial commitment. I was getting impatient and wanted to move the project forward. Non-profit fundraising seemed like something that I could do on my own without relying on other people’s time, tastes, etc. It was intended as the first stage in my fundraising efforts.”

As a member of the IDA, a filmmaker has access to their Fiscal Sponsorship Program, which assists more than 300 documentary projects in film, video and interactive media and allows a filmmaker to raise funds under the their non-profit banner. Admission to this program is only available to members and requires filling out an application with a $75 review fee. I was accepted into their program for a documentary project I was developing in the South Pacific last year called The Kingdom Just West of Midnight, about the people’s democratic movement in the Kingdom of Tonga. At this point, the project is moving along like a gigantic ice flow, but I must say that it was beneficial for me to be able to say to potential funders and investors that I had this kind of relationship with a well-regarded international entity like IDA. It carried some heft, in other words, in the doc world. (Not that any money has come through yet, mind you. But still.)

In applying for these programs, (or any grant-writing exercise, for that matter) you have to force yourself to hone your synopsis and/or treatment for your film. Ultimately, this helped me with my pitching skills—I learned how to present my project in the most favorable light, with the biggest emotional impact I could muster on the page, in order for an administrator, inundated with submissions up to the eyeballs, to put it in the “let’s consider that one” pile. I’m a proponent of applying for things as much as you can. It’s good practice for all kinds of things, particularly your sales skills. It does take inordinate patience since most funding institutions or fiscal sponsorship programs, labs, etc. can take up to six-to-eight weeks to get back to you with a nay or yea on whether they’re considering funding your project or will allow you to act as a legal representative in an agreement with their institution. In essence, you become the project director of your film—a role a lot of filmmakers find daunting. Don’t be daunted.

Finding a fiscal sponsor is not really difficult. There are several across the country. A little bit of Internet research will stand you in good stead. You’re very likely to find a non-profit entity (arts funding or otherwise) in your area. Ask to speak with the public relations office and find out more about what kinds of programs they’re offering. Think of your project, whether it be documentary, feature, multimedia, or video, creatively in terms of it’s proposed impact on various things – society, children, politics, law-making, groundbreaking use of technology, historical resonance. If your project falls outside the mainstream of what the studios or other major filmmaking companies want, then create your own category of blockbuster and figure out how to enlarge your audience – you might surprise yourself.

Not all films need to have a mission to better the universe to qualify for a fiscal sponsorship. However, you are asking for donations, so be cognizant of the fact that someone is making a choice to put some of their money into your film. It’s your responsibility to make it worth their while. This will lead to long-term relationships with producers and other people who have successfully assisted you in funding your project to move forward with production, post-production, marketing, distribution, etc.

The fundraising hat for any filmmaker is often the least desirable role one has to take on when there are only a handful of people (or just you) to do all the selling for the film. But, it’s the filmmaker-of-today’s lot so embrace it and educate yourself as much as you can. Soon, you’ll be the “go-to” guy or girl on behalf of other people’s projects and, poof, you’re a mini-mogul with his/her own studio worth billions. It could happen.

Pamela Cohn is a freelance multimedia producer and documentary filmmaker and DP based in Los Angeles, California. She is a “have-camera-will-travel” kind of gal and has several international projects in development and production. Her documentary with Lisandro Perez-Rey, "La Fabri_K: The Cuban Hip Hop Factory,” recently screened at the AFI International Film Festival in Los Angeles and is currently being marketed at Cannes. She graduated from Sarah Lawrence College in New York in 1993 with concentrations in poetry, American history and Italian language and literature. She welcomes any questions on any aspect of the process, creative, logistical or otherwise, and will be happy to share resources, ideas and technical information. She can be reached at pamela@thefilmlot.com.