This is it: sooner or later you will have to bite the bullet and raise funds to develop and complete your documentary project. If you are like most of us, asking for money is something you don’t want to do. To be successful, you first must get over this reluctance to ask for support.
Is your project worthwhile? Do you believe your project will add value to people’s understanding of its subject? Do you believe that spreading this knowledge is important? Is your project truly meaningful? Your answer to these questions is already yes or you would not be working on it. The next step is to help others understand why this project is valuable. Fund-raising is more than just asking for money; it is about building relationships with people who care about your work. When others learn about the valuable work you are doing, you have created an opportunity for them to participate in your project by providing financial support. If you are truly convinced of the benefit of your work, you should be able to be your own best missionary.
Blue Earth project photographers who were successful fund-raisers each believed their project was so important that people would love to have the opportunity to contribute to something that valuable.
Do you need to be a nonprofit with 501(c)(3) status to raise funds? The answer is no, but it may affect the way you go about fund-raising.
You may be able to get contributions from a business even if you do not have 501(c)(3) status if the contribution is for a legitimate business expense. The most usual business expense category is promotion. You must, however, offer a promotional benefit to the business, and that should be stated up front. Recognizing the business as a sponsor in publications, exhibits, or promotions for exhibits is a typical way to create an advertising and promotion business expense.
If you do have 501(c)(3) status, individuals can take a charitable deduction for contributions made to your project. However, this contribution is limited to the amount by which the contribution exceeds the fair market value of anything received in return for the contribution. For example, if your fund-raising involves the usually successful method of giving a print in exchange for the contribution, the donation will not be tax deductible if the fair market value of the print equals or exceeds the amount of the donation. In this case, 501(c)(3) status is not relevant.
As an example, a now very successful photographer in the North-west funded 10 of his photographic trips by asking individuals to contribute to his anticipated trip expenses in exchange for the right to select a print from images taken on the trip. The donation for each print was set at a price slightly below the photographer’s usual selling price. When the photographer returned from his trips, he would set up a special exhibit so the donors could view the images and select their print. This also whetted the appetite of the donors for the next round of prints from the next trip. This method was successful in funding the trips without 501(c)(3) status.
However, if you have donors who contribute to your project with-out receiving anything in return, their gift will be tax deductible only if they make that donation to a registered nonprofit.
If you have 501(c)(3) status, charitable contributions by corporations and businesses are also tax deductible, and likewise are subject to the limitation that the contribution must exceed the fair market value of anything received in return. In-kind contributions are also tax deductible. It is important to remember that individual charitable donations by employees are oftentimes matched by their employer if the donation is made to a registered nonprofit. This is another way in which businesses can help contribute to a project.
Frequently, a business entity or an individual may be unwilling to give money but quite willing to give in-kind contributions. Be aware of what types of things such individuals and organizations may sell or produce to see if any are usable by you directly or through an auction or other fund-raising device. It’s also important to remember that in-kind donations, and cash contributions, can be used to match funds raised through a grant.
Additionally, if you have 501(c)(3) status you will be able to apply for grants from more foundations than if you were applying as an individual artist. Most foundations are required by law to each year give away 90 percent of their income to nonprofit organizations with 501(c)(3) status. They cannot meet this obligation by giving funds to individuals. Thus, this fund-raising avenue is not available to your project unless your project has 501(c)(3) status through a nonprofit organization.
Some foundations do give funds to individuals. The method of applying these foundations is usually similar to that of applying to foundations whose contributions may be made to nonprofit organizations only. Several government agencies also will provide funding for worthwhile projects. These agencies may or may not require that the applicant be a nonprofit organization. Thus, the material in this book about applying for grants has universal application.
All foundations and some businesses have specific procedures to follow in seeking funds. Before you apply, make sure your project is of the type that the funder is interested in. That information is readily available from potential funders. Don’t waste your time, and theirs, applying for funds for a project that does not meet the funder’s interests. Once you have found a grant source that aligns well with your project, read through the entire application (paying special attention to deadlines and application procedures).
Surprisingly, one of the most commonly cited reasons for rejecting a proposal is that the applicant failed to follow the organization’s rules about applying for funds. Another common difficulty is that the applicant does not directly answer all of the questions in the grant application in a clear and concise manner. You must be compelling and concise if you expect your application to be seriously considered by the individuals who decide who will be funded. Foundations are usually flooded with funding requests, and you have to draw attention to the uniqueness of your project. If you need it, get help writing. The clearer your application can be, the better chance you have of receiving funding.
Judy de Barros, Malcolm Edwards, and Marissa Chavez
This series features selected articles from Shooting From The Heart: Photography That Makes A Difference, our highly regarded handbook for photographers developing documentary projects. If you can’t wait for the full series to be published, feel free to download a free PDF version of Shooting From The Heart and have a copy to keep as your own!
