Fractured Atlas Presents: Fiscal Sponsorship + Crowdfunding = $$ for Creative Projects. Dianne Debicella - Program Director, Fiscal Sponsorship
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1 Fractured Atlas Presents: Fiscal Sponsorship + Crowdfunding = $$ for Creative Projects Dianne Debicella - Program Director, Fiscal Sponsorship
2 What we re 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 Fiscal Sponsorship Program Fundraising: having the ability to give donors a tax-deductible receipt for their contribution of cash (checks or credit card) or tangible items Grants: having access to foundations that only allow tax-exempt charities to apply Also, with FA fiscal sponsorship, you can gain access to: Nonprofit rates with vendors and companies who offer them Review of all grants and solicitation materials
6 Arts Fiscal Sponsors: Best Practices All fiscal sponsors charge a fee, usually 5-10%. FA's 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 Sponsorship Program? 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 creative development Organizations that are waiting on their own 501c3 status, or who are not planning on filing for their own status The potential project must NOT have investors or commercial intent; they should be 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 Breakdown From How the United States Funds the Arts
11 So what is crowdfunding According to Wikipedia: It is the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations.
12 Who are the providers? There are others, but these are the major players right now.
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16 Picking the Crowdfunding Site for you
17 Coming up with your Game Plan Preliminary project planning Choosing the Crowdfunding platform that s right for you Setting up your campaign Running your campaign
18 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 don t compromise quality. Now that you know your expenses, you can figure out what your goal is.
19 First things First Defining your project Learn how to talk to other people about your project. Remember, general projects don t get funded. Start thinking about time frames. Think about why you re different.
20 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.
21 Now what continued. Content: Write an amazing (yet concise) description of your project. Get your Pitch Clip up on YouTube or Vimeo.
22 Now what continued. Timing and Goals: Set your time frame. Set your goal. Don t set up two crowd funding campaigns.
23 Donor Perks Donor perks are really the heart of crowdfunding. Determine perks that you can afford and correlate them to a reasonable giving level. Remember, you will have to or mail these perks, and get donor mailing information. Average donation amounts are around $70 dollars. Need a boost?
24 Perks, continued. You ll probably only get a few heavy-hitter donors, folks who donate 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 the giving level goes up. Your perks can set you apart.
25 Audience Building Time to sit back and relax, right? Nope. Invite Friends Use the widget tools Facebook Don t 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.
26 Don t forget your manners. Each crowdfunding website will have a way for you to send your thanks to your donors automatically. Personalize the thanks to your donors if you can. For substantial donors, make sure to send a card with your perk items. You never know when you ll be fundraising again!
27 Crowdfunding myths Random people WILL contribute to my campaign. It s easy, I m gonna sit here and do nuthin Post it, and they will come. Diamonds for donors Huge goals = huge donations!
28 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 you re 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
29 Learn more about Fractured Atlas Fiscal sponsorship: Call us at us at Contact us to learn more about our partnership with IndieGoGo and Rockethub.
30 Additional Resources Chronicle of Philanthropy: Philanthropy News Digest: Wikipedia on 501(c)(3): IRS Website on Exempt Organizations:
31 Book recommendations The Only Grant-Writing Book You'll Ever Need: Top Grant Writers and Grant Givers Share Their Secrets! by Ellen Karsh and Arlen Sue Fox The Foundation Center's 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 Dropkin To contact us with specific questions, or to request a PDF of this presentation... support@fracturedatlas.org
32 Any questions? Call us at us at
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