Board of Directors Question
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=3227
Printed Date: 11/23/24 at 4:24am
Software Version: Web Wiz Forums 8.05 - http://www.webwizforums.com
Topic: Board of Directors Question
Posted By: tonyboling
Subject: Board of Directors Question
Date Posted: 6/10/08 at 10:52pm
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Our community theatre doesn't so summer shows. Up until a few years ago some guy in the community put up his own musical in the summer mainly for kids to be in since the regular community theatre doesn't do a lot of kid shows. Well he stopped doing it and two members from our board took it upon themselves to put up a summer show themselves to fill that void. Two years ago they put up a production of Footloose and it did decent. Last year they wanted to tey again and they chose High School Musical and they went to the board of directors and made a proposal. Basically to front them the startup money (to be paid back) and to be able to operate under thier 501(c)3 so they can get cheaper theatre rental. The proposal was passed, HSM went up, was a huge success and made all of it's money back and a $7400 profit. They went to the board and offered them a percentage as a thank you for fronting the cash and the board denied it and said it was their money. Flash forward nearly a year and they're putting up Fame. Now the community theatre just had a terrible season. They lost a lot of money. the board of directors is now trying to pass a resolution saying that the summer theatre's $7400 profit belongs to them and it always has. They're dictating how much Fame's budget is and aren't giving them a lot. Like $2000 after royalties are paid. I know legally nothing can be done, morally and ethically I think it's bankrupt though. Hindsight being 20/20, the summer group should have registered for their own 501(c)3 and pulled their cash out a long time ago. So what are your thoughts? |
Replies:
Posted By: B-M-D
Date Posted: 6/13/08 at 3:23pm
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Wow they refuse the "thank you" money in the first place and then when the going gets tough they suddenly want a piece of it. It's not right and they should be ashamed of themselves.
As for the latest production of Fame that's a whole new kettle of fish and the CT has the right to dictate terms if it's produced under thier auspices. The summer group has essentially three choices: accept the terms & conditions, negotiate with the CT or make other arrangements that don't include the CT. ------------- BD 
"Dying is easy, comedy is hard." |
Posted By: jayzehr
Date Posted: 6/13/08 at 5:41pm
Are you saying that the board refused to give back the $7400 originally claiming it was their money? |
Posted By: JoeMc
Date Posted: 6/13/08 at 7:35pm
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Possibly the board is vacuously liable, by allowing this group to use their not for profit status, for others to gain profit. I don't know but would this not constitute an offence. Which Which would naturally carry a fine &/or even Gaol time, for it's Office Bearers? Also as the original contract between the two parties, has been settled & completed, it' no longer exists. As they say in the classics "Tough Titties!". However this may not absolve the summer group, from being forced into making restitution, to those they made from the mezzanine profits from, thru deception - if push comes to shove, both parties may end 'stirring Porridge' in gaol together. I think if the board were to press for the return of the original profits, they might end up in it, up to their collective eyeballs.  ------------- [western] Gondawandaland "Hear the light & see the sound! TOI TOI CHOOKAS {may you always play to a full house!} |
Posted By: jayzehr
Date Posted: 6/13/08 at 9:29pm
| If the board put up the money to stage the show, and the show was staged by board members under the auspices of the board's 501(c)3, and the proceeds wound up in the board's hands (if I'm understanding the original post) it might be hard to make the case that the money belongs to anyone else unless there is something specific in writing. And though I'm way far from an expert, I agree with Joe that there might be legal questions about a non-profit turning that money over to a person or entity under these circumstances. |
Posted By: Darren
Date Posted: 7/22/08 at 6:36pm
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I think this shows a lack of business sense and morals for the board as a whole. Basically, it's a great argument for why it's very important to get any understand in writing when it comes to producing, presenting, renting or just about anything else.
------------- Darren Farrington Theater Management and Production Consultant http://darrenfarrington.com - www.darrenfarrington.com |
Posted By: stageman 2
Date Posted: 8/27/08 at 9:10am
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what a great way to close a CT. Lack of community support, greed, irresponsible leadership on top of a bad season. Sounds like it's time to replace the board.
------------- Les Liss Fine Arts, County of Effingham info@effinghamface.com www.effinghamface.com Always be yourself because the ones that matter don't care and the ones that care don't matter. |
Posted By: whitebat
Date Posted: 8/28/08 at 10:28pm
| Our CT started out under the umbrella of another 501(c3) (not theater related). They gave/loaned us ~$1500 to get started. But then members of the 501(c3) organization claimed they had made a personal loan/gift using their personal credit card(s). We are now a 501 (c3) in our own right, and they have not asked for the money back. It was good, and I understand legal (because theater fell within the mission of the other non-profit) to start under them because it gave us some funds to get started. But we felt there were too many strings attached as far as what we could or couldn't do. |