Money Talk: Sponsorship and non-501c?

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Sponsorship and non-501c?

Printed From: Community Theater Green Room
Category: Theater Administration
Forum Name: Money Talk
Forum Discription: Questions about fundraising and promotion
URL: http://www.communitytheater.org/forum/forum_posts.asp?TID=3063
Printed Date: 11/22/24 at 4:56am
Software Version: Web Wiz Forums 8.05 - http://www.webwizforums.com

Topic: Sponsorship and non-501c?

Posted By: landon2006
Subject: Sponsorship and non-501c?
Date Posted: 3/20/08 at 2:48am

I have just started a new, nonprofit community theater. We have an issue though, even though we are a non-profit corporation (according to Indiana law) we are not a 501 (c) 3 yet. We hope to apply for it in the near future, but can't afford the $750 at the moment.

Since we don't have any money, and we need some to mount our first production, we need to find sponsors. However, without being a 501 (c) 3 we are concerned that we won't be able to get business to give us money or goods since they can't right it off on taxes.

We anticiapte having 501 by the end of the year, and since we are a community theater that operates much like any other 501 (C) community theater, there is no reason why our application should be approved, in which case even people who gave us money or goods now without 501 (c) could still right it off as soon as well receive the status (once approved, 501 (c) roles back to the date of the forming of the corp).

It's not like people will be giving us money for nothing, since they receive quite a bit of advertisement in return, we just can't seem to think people will sponsor a non-501(c), at least not until we have our actual status... an I wrong in thinking this?

Thanks,
Landon

Executive Director,
The Broadway Entertainment Company Inc.
www.broadwaybloomington.org

Replies:

Posted By: Nanette
Date Posted: 3/20/08 at 9:29am

When we started out, we were lucky enough that a local person (to this day I don't know who he was) loaned us the money for the first production. We paid him back from our profits and kept the rest. Of course, we had to keep exact records/receipts of where the money went, but it was excellent practice for our company who has to do that anyway.

You might want to ask around or put an ad in the paper seeking community support. You might be surprised at what the public would dish out if you only ask.

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In a world of margarine, be butter!

Posted By: landon2006
Date Posted: 3/20/08 at 4:31pm

We have anticipation of putting on a Haunted house in October, which should bring in $70 - $85k (Haunted Houses are a big business here in Bloomington with all the college kids).

I know if we wait till then we would have the money to mount the show... But I don't wanna wait that long...

We actually need about $30,000 in total money and assets. Although we hope to be able to work it out with local business where instead of money they sponsor materials. In the long run, thats what we'll be spending it on anyway.

However, we need around $15,000 in funds to cover the Royalty cost, book rentals and theater rental fee's. Other than that, the other $15,000 can be either in goods or money.

Landon

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Posted By: John Luzaich
Date Posted: 3/21/08 at 10:37am

Landon,

It's been our experience that business owners and managers do not make a decision to sponsor something so they can write it off. That's the last thing on their mind. They're thinking "What's in it for me and my business?" What do they get in return? What is the benefit to their business for sponsoring something? They want increased visibility and they like to associate themselves with others in the community with good reputations. You need to sell the benefit of being associated with your group and make a real compelling argument on why they should sponsor you. We tell our sponsors that "We have a great reputaion in our area and we spent 30 years developing that reputation". Businesses will want to sponsor with us because they like attaching themselves to us. In addition to all of that, our sponsors get:

(1) 50 tickets to the sponsored performance

(2) name or logo on our posters

(3) name or logo on the title page of our playbill

(4) a pair of season tickets

(5) use of the party/reception room for free (usually a rent is charged)

(6) curtain announcement on stage greeting with executive director

(7) can display their business promotional materials in the lobby

(8) hang 8' banner for their business (they provide) inner or outer lobby

(9) name or logo on our newsletter or postcard sent out to our entire

mailing list to promote the show

(10) mention in our e-mail blast

(11) listed in all of the press releases and P.S.A.'s we send out

Businesses realize they get something in return for their sponsorship dollars, they are more willing to part with their money. Banks are constantly hit up for sponsoring many different worthwhile causes and events. So are certain types of other businesses. Make them realize it's a great thing to partner with you!

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John
cfct@cfu.net
http://www.osterregent.org
http://www.facebook.com/osterregent