Community Theater Green Room Discussion Board: 501c3 status

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genesius
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Topic: 501c3 status
Posted: 9/02/05 at 8:27am

We are considering a gas allowance/reimbursement/whatever for actors who live more than 25 miles away. We'd do a flat $300 per show, which comes nowhere close to actual costs. The question is: does that endanger our status as a non-profit organization? I'm thinking not, because it isn't work for hire. Our directors get $500 per show and I don't see the difference, but the 501c3 status is the current arguement against the gas money. Any words of wisdom? Advice yea or nay?

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tristanrobin
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Posted: 9/02/05 at 10:08am

In our city, we have two major (nationally recognized) non-profit
theatres - Yale Repertory and Longwharf Theatre.

Donations to both these theatres result in tax deductions.

They both hire all their actors (Equity).

Why would your organization be different?

Heck - even the Salvation Army hires their personnel.

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POB14
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Posted: 9/02/05 at 10:44am

If you look at Pub. 557 from the IRS, the only thing that can cost you your status is if the purpose changes (i.e. you become for-profit). As Tristan pointed out, you can HIRE people; why wouldn't you be able to reimburse expenses? If you sent a tech out to buy wood to build a set, wouldn't you reimburse her for the expense? Same thing.

Added: Or, you could just charge people to act, as in this thread:

http://www.communitytheater.org/discuss/forum/forum_posts.as p?TID=1570&PN=1&TPN=1

POB
Old Bugger, Curmudgeon, and Antisocial B**tard

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dougb
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Posted: 9/18/05 at 12:35pm

An interesting wrinkle out here in Washington State: The state has determined in its infinite wisdom that any payments to actors make them employees with all the attendant paperwork - payroll taxes, deductions, workers comp, unemployment taxes and so on. Arguments about actors being self employed, independent contractors or multiple employers fell on deaf ears because the theater set the work schedule. Reimbursements has not been addressed but flat fees and honorariums are considered pay.

If your state is as arts unfriendly and ours, you may have a similar problem. You might be able to get around it by paying specifically for exact mileage using the IRS reimbursement amount.

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Gaafa
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Posted: 9/19/05 at 4:40am

How would you go with giving Podium?s & honorariums?

Joe
Western Gondawandaland
turn right @ Perth.
Hear the light & see the sound.
Toi Toi Toi Chookas {{"chook [chicken] it is"}
May you always play
to a full house}

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leegabs
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Posted: 3/22/06 at 11:14am

I would like to start a Community Theater in my area, rual Oklahoma, but I need resources to research the profit vs non-profit corporations and how it applies to theater. Books would be good but I don't want to buy 50 How-To books. Web site reccomendations would be great too. I'm really starting from scratch and though I've had some theater experience, school and community theater, mostly off-stage, I don't have a clue how to get started. There are about 12-15 people who are also interested in this venture with me and I'd like to plan our first meeting by May.

"I lived but for a brief moment and then the curtain fell." Lee

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75director
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Posted: 3/22/06 at 4:21pm

Take a look at this section of AACT website http://www.aact.org/start/index.html it talks about the logistics of starting a community theatre.

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Kathy S
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Posted: 3/24/06 at 1:22am

There are also some places on this discussion board where this topic has been very thoroughly discussed....

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laurielu
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Posted: 4/16/07 at 1:45am

Dougb:

It is now 2007....are the rules in Washington State the same? I'm in southwest Washington. We just did a musical and gave our piano player an honorarium. Do you have a website that could address this question?

Thanks,

Laurielu

Nothing changes if nothing changes.

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Topper
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Posted: 4/16/07 at 8:21am

Another solution might be to have the actors pay for their own gas, collect the receipts, and turn them in for reimbursement.

"None of us really grow up. All we ever do is learn how to behave in public." -- Keith Johnstone

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Running Your Theater
Community Theater Green Room Discussion Board :Theater Administration :Running Your Theater

Author	Message
genesius Walk-On Joined: 2/21/05 Location: United States Online Status: Offline Posts: 0	Topic: 501c3 status Posted: 9/02/05 at 8:27am
	We are considering a gas allowance/reimbursement/whatever for actors who live more than 25 miles away. We'd do a flat $300 per show, which comes nowhere close to actual costs. The question is: does that endanger our status as a non-profit organization? I'm thinking not, because it isn't work for hire. Our directors get $500 per show and I don't see the difference, but the 501c3 status is the current arguement against the gas money. Any words of wisdom? Advice yea or nay?

	IP Logged

tristanrobin Celebrity Joined: 4/25/05 Location: United States Online Status: Offline Posts: 704	Posted: 9/02/05 at 10:08am
	In our city, we have two major (nationally recognized) non-profit theatres - Yale Repertory and Longwharf Theatre. Donations to both these theatres result in tax deductions. They both hire all their actors (Equity). Why would your organization be different? Heck - even the Salvation Army hires their personnel.
	IP Logged

POB14 Celebrity Joined: 7/01/05 Location: United States Online Status: Offline Posts: 349	Posted: 9/02/05 at 10:44am
	If you look at Pub. 557 from the IRS, the only thing that can cost you your status is if the purpose changes (i.e. you become for-profit). As Tristan pointed out, you can HIRE people; why wouldn't you be able to reimburse expenses? If you sent a tech out to buy wood to build a set, wouldn't you reimburse her for the expense? Same thing. Added: Or, you could just charge people to act, as in this thread: http://www.communitytheater.org/discuss/forum/forum_posts.as p?TID=1570&PN=1&TPN=1
	POB Old Bugger, Curmudgeon, and Antisocial B**tard
	IP Logged

dougb Celebrity Joined: 3/30/04 Location: United States Online Status: Offline Posts: 148	Posted: 9/18/05 at 12:35pm
	An interesting wrinkle out here in Washington State: The state has determined in its infinite wisdom that any payments to actors make them employees with all the attendant paperwork - payroll taxes, deductions, workers comp, unemployment taxes and so on. Arguments about actors being self employed, independent contractors or multiple employers fell on deaf ears because the theater set the work schedule. Reimbursements has not been addressed but flat fees and honorariums are considered pay. If your state is as arts unfriendly and ours, you may have a similar problem. You might be able to get around it by paying specifically for exact mileage using the IRS reimbursement amount.
	IP Logged

Gaafa Celebrity Joined: 3/21/04 Location: Australia Online Status: Offline Posts: 1181	Posted: 9/19/05 at 4:40am
	How would you go with giving Podium?s & honorariums?
	Joe Western Gondawandaland turn right @ Perth. Hear the light & see the sound. Toi Toi Toi Chookas {{"chook [chicken] it is"} May you always play to a full house}
	IP Logged

leegabs Walk-On Joined: 3/22/06 Location: United States Online Status: Offline Posts: 0	Posted: 3/22/06 at 11:14am
	I would like to start a Community Theater in my area, rual Oklahoma, but I need resources to research the profit vs non-profit corporations and how it applies to theater. Books would be good but I don't want to buy 50 How-To books. Web site reccomendations would be great too. I'm really starting from scratch and though I've had some theater experience, school and community theater, mostly off-stage, I don't have a clue how to get started. There are about 12-15 people who are also interested in this venture with me and I'd like to plan our first meeting by May.
	"I lived but for a brief moment and then the curtain fell." Lee
	IP Logged

75director Celebrity Joined: 8/19/05 Location: United States Online Status: Offline Posts: 122	Posted: 3/22/06 at 4:21pm
	Take a look at this section of AACT website http://www.aact.org/start/index.html it talks about the logistics of starting a community theatre.
	IP Logged

Kathy S Celebrity Joined: 8/21/04 Location: United States Online Status: Offline Posts: 303	Posted: 3/24/06 at 1:22am
	There are also some places on this discussion board where this topic has been very thoroughly discussed....
	IP Logged

laurielu Walk-On Joined: 4/07/07 Location: United States Online Status: Offline Posts: 0	Posted: 4/16/07 at 1:45am
	Dougb: It is now 2007....are the rules in Washington State the same? I'm in southwest Washington. We just did a musical and gave our piano player an honorarium. Do you have a website that could address this question? Thanks, Laurielu
	Nothing changes if nothing changes.
	IP Logged

Topper Celebrity Joined: 1/27/05 Location: United States Online Status: Offline Posts: 543	Posted: 4/16/07 at 8:21am
	Another solution might be to have the actors pay for their own gas, collect the receipts, and turn them in for reimbursement.
	"None of us really grow up. All we ever do is learn how to behave in public." -- Keith Johnstone
	IP Logged

Topic: 501c3 status( Topic Closed)
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