Running Your Theater: 501c3 status

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501c3 status

Printed From: Community Theater Green Room
Category: Theater Administration
Forum Name: Running Your Theater
Forum Discription: General questions about how to make it work
URL: http://www.communitytheater.org/forum/forum_posts.asp?TID=1571
Printed Date: 11/21/24 at 10:03pm
Software Version: Web Wiz Forums 8.05 - http://www.webwizforums.com

Topic: 501c3 status

Posted By: genesius
Subject: 501c3 status
Date 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?

Replies:

Posted By: tristanrobin
Date 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.

Posted By: POB14
Date 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.asp?TID=1570&PN=1&TPN=1 - http://www.communitytheater.org/discuss/forum/forum_posts.as p?TID=1570&PN=1&TPN=1

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

Posted By: dougb
Date 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.

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

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

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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}

Posted By: leegabs
Date 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.

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

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

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

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

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

Posted By: laurielu
Date 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

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Nothing changes if nothing changes.

Posted By: Topper
Date 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.

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

Posted By: kmdded
Date Posted: 4/26/07 at 10:11pm

Along this line with starting a non-profit theatre.....How many people must constitute the board of directors and can the founders be on the board or does it have to be broader than that?

Posted By: laurielu
Date Posted: 4/27/07 at 3:31am

Our group just got our 501(c)(c) status. We did it with four board members; two of us were founding members. We were never asked about the make-up of our board. We did, however, incorporate in our state first and then we had a tax/accounting specialist (not necessarily a CPA) do the paperwork for us. She was happy to help and in lieu of payment, we've given her 'patron' status.

Hope this helps,

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Nothing changes if nothing changes.

Posted By: laurielu
Date Posted: 4/27/07 at 3:34am

Oh, I should add that the IRS fees are rather steep. We paid $750 for the 501(c)(3) because we had over a certain amount in our bank account.

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Nothing changes if nothing changes.

Posted By: POB14
Date Posted: 4/27/07 at 9:18am

Originally posted by laurielu

Oh, I should add that the IRS fees are rather steep. We paid $750 for the 501(c)(3) because we had over a certain amount in our bank account.

It's based on gross reciepts, not cash on hand. http://www.irs.gov/pub/irs-pdf/f8718.pdf - Form 8718.

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