Frequently Asked Questions (FAQ)

• What is Fiscal Sponsorship?
• What is Arts Engine, Inc.?
• Why should Arts Engine, Inc., be my fiscal sponsor?
• How exactly does fiscal sponsorship with Arts Engine, Inc., work?
• Am I eligible?
• What are the major benefits of Arts Engine, Inc.’s Fiscal Sponsorship Program?
• Is there an administrative fee?
• What are the required application materials?
• When are the deadlines?
• What if I need more information?

What is Fiscal Sponsorship?

Fiscal Sponsorship is a fundraising tool that provides an alternative to establishing your own 501 (c)(3) nonprofit corporation in order to access funding for your non-commercial project from various grantmaking organizations that require nonprofit status from its applicants. The funding, when received, is given to this nonprofit, tax-exempt umbrella organization. This organization, acting as the filmmaker’s fiscal sponsor, administers and accounts for funding on behalf of the filmmaker and his or her project.

The fiscal sponsor is legally responsible for the funds received on behalf of sponsored projects. It must insure that the funds are used for the activities/work agreed upon by the donor and the recipient, and that the donor reporting requirements are met in a timely fashion.

While fiscal sponsorship can save you from the long and arduous process of becoming a 501 (c)(3) nonprofit tax-exempt organization and broadens your funding options, it is important to note that fiscal sponsors do not provide funding themselves, and do not research and apply for grants on behalf of a project or filmmaker.

What is Arts Engine, Inc.?

Arts Engine, Inc., is a 501 (c)(3) organization founded in 2000. We promote media that addresses important contemporary social issues, and seek to enhance public understanding of issues relating to public life, such as race relations, equality in the workplace, criminal justice, immigrant rights, religious tolerance, family life, education and cultural differences.

Why should Arts Engine, Inc., be my fiscal sponsor?

See below the myriad of reasons for seeking our fiscal sponsorship:
• As your fiscal sponsor, Arts Engine, Inc., will not infringe on the creative control of your project, nor do we take ownership of the rights to the project. We help you get your project off the ground, and then it’s all up to you!
• We have a very easy, straightforward application process, with rolling deadlines.
• Our submission requirements are very manageable. For example, sample reels do not have to contain footage from the film in development. Other completed works of any length can be submitted.
• Our application review process only takes between 2 and 4 weeks.
• The program is small and selective, allowing you to receive personalized, efficient attention.
• There are no membership requirements, membership fees or maintenance fees, beyond the $50 application fee.
• Our donation and other financial processes are accommodating and easy to use. Donations for projects can be in the form of cash, check, stock, and credit card; online credit card donations can be made through a unique URL assigned to each project; the re-granting process is easy and straightforward, with minimal paperwork and quick turnaround; there are no minimum fundraising requirements.
• Fiscal sponsorship program members enjoy access to the expertise and advice of the entire Arts Engine staff.
• Filmmakers approved for Arts Engine fiscal sponsorship join an impressive roster of fiscally-sponsored films, such as THE TRIALS OF DARRYL HUNT, PRAY THE DEVIL BACK TO HELL, LIONESS, GARBAGE DREAMS, FAVELA RISING, SERGIO, and IN A DREAM, among many others.

How exactly does fiscal sponsorship with Arts Engine, Inc., work?

Once your project has been awarded a grant or receives a contribution, the funds are mailed to Arts Engine, Inc. We then deposit the funds in our tax-exempt bank account. Within the next 15 days, a check is written to the Project Director or the production company. Checks are disbursed to one name only.

Your responsibilities:

• Provide Social Security and/or Tax ID information to Arts Engine, Inc. once admitted to our fiscal sponsorship program.
• Handle your own production accounting.
• Conform to the production guidelines specified in the grant when using received funds.
• After making use of the full grant, or at the end of the calendar year, supply Arts Engine, Inc., with an expense report that indicates how funding regranted by us was spent.
• Maintain proper tax records, allowing Arts Engine, Inc., to provide tax authorities with the necessary paperwork in the event of an audit.
• Credit Arts Engine, Inc., as a fiscal sponsor in the end credits of your film.

Arts Engine will report to the Internal Revenue Service all funds granted to the filmmaker, and it is his/her responsibility to pay any taxes due on the funds. If a grantmaking organization/individual produces a check payable to the wrong party, the fiscally-sponsored filmmaker is responsible for following up with the grantmaking party to ensure that they write a new check payable to “Arts Engine, Inc.” In addition, the initial fiscal sponsorship agreement is valid through a predetermined expiration date, at which time the sponsored filmmaker may seek to renew the fiscal sponsorship.

Am I eligible?

In order to be eligible to apply to Arts Engine’s Fiscal Sponsorship Program, you must meet the following criteria:

• Your project must be a film, video or multimedia project.
• You must be a U.S. citizen with a Social Security number or have a production company with a U.S. Federal ID number.
• You cannot be a full-time student.
• The project proposal must reflect your ability to develop a high quality project.

We will review your application using the following criteria:

• Is the subject matter relevant to the mission of Arts Engine, Inc., as presented above?
• Is the proposal engaging and clearly written?
• Does the project present a realistic budget?
• Is the apparent fundraising ability of the project director adequate? Does he or she identify appropriate potential sources of funding for the project?
• Are the key project personnel sufficiently experienced, and how feasible is the completion of the project?
• Is there potential for distribution of the final project?

What are the major benefits of Arts Engine, Inc.’s Fiscal Sponsorship Program?

The following is a list of benefits you will enjoy as part of Arts Engine’s fiscal sponsorship program:

Nonprofit Status for Fundraising Purposes
• As we have said above, fiscal sponsorship gives you the opportunity to apply for grants from foundations and government organizations that can only fund nonprofit tax-exempt organizations. Individuals may also make tax-deductible charitable donations to your project.
On-going Consultation
• Arts Engine will discuss fundraising plans, and will be available to advise the filmmaker on the proper use of nonprofit funds. Also, Arts Engine will advise you on reporting requirements for granting organizations.
We Provide the Paperwork
• Arts Engine will save you the hassle of obtaining the extensive required paperwork. We will provide documents regarding the tax-exempt status, board directors, etc., as required by potential funding sources.

Is there an administrative fee?

In addition to a $50 application fee, Arts Engine, Inc., will charge a service commission of 6% of all funds made payable to “Arts Engine, Inc.” Please note that if you are applying for grants, such as the National Endowment for the Arts, National Endowment for the Humanities, New York State Council on the Arts, and other similar governmental granting organizations, we will charge a 7% service commission. As soon as funds clear in Arts Engine’s bank account, a check in the amount of 94% (or 93%, depending to the source of the funding, as explained above) of the total funds will be made payable to the Project Director or the production company.

Arts Engine, Inc., will issue the Project Director a 1099 Independent Contractor tax form at the end of the year for the entire amount of the grant. It is the responsibility of the Project Director to account for the money as income and expenses for tax purposes.

What are the required application materials?

The following material must be included in your Application Package to our Fiscal Sponsorship Program:
• Application Cover Sheet
• Project Proposal (The requirements for the project proposal are listed below. This portion of the application allows us to see exactly what you anticipate sending to funders. If there is a specific grant you will be applying for, feel free to send us the proposal you will use for that funder.)
• Sample Tape and statement on how the sample relates to your current project
• $50 Application Fee
• References (Please include a contact list with phone numbers and email addresses for two personal or professional references.)
• Treatment and Script (Applications for dramatic or narrative projects must also include a treatment and the first 10 pages of your script.)

Proposal Guidelines
The project proposal should be exactly what you anticipate submitting to funders. It should be typed, and written using clear and precise language. While your proposal may differ slightly in format and length, your proposal must contain all elements listed below:
INTRODUCTION
Describe why your project is important, and, in a sentence or two, summarize what you are trying to accomplish. This paragraph should also contain a concise description of the project that clearly states the format and intended length of the finished piece.

PROJECT DESCRIPTION
Describe the format and style of your project, the subject matter, a statement of financial need, and a visual treatment. Tell us why you think the project is important and how you got involved. If there have been other projects on the same topic, tell us how yours is different.

FUNDRAISING STRATEGIES
Tell us how you plan to fund your project. Give specific names of foundations, corporations and agencies to which you will apply. Include a comprehensive list of potential donors that specifies the amounts that you plan to request from each. Be certain to include as much details about any funding you have already received or that is secured and make clear whether the funds are pending or have already been received. Be sure to explain if you are going to solicit donations from individuals, or if you are planning fundraiser events. If available, please include information on other projects you have for which you have successfully raised funds and the funders from whom you have received grants. Applications without a thorough fundraising plan will not be considered. Additionally, if you have not already identified appropriate sources for funding your project, we strongly encourage you to apply at a later date once you have a complete fundraising strategy.

DISTRIBUTION STRATEGIES
Define your primary audience and how you hope to reach them. Describe them in as much detail as possible, and tell us what venues, distributors or alternative strategies will you use and why. Funders want to see who will benefit from the work they fund so be as specific as possible in this section. It is extremely important to include detailed information and avoid generalizations about your audience.

BUDGET
Include the total budget for your project needs, accounting for all phases of production, crew costs, equipment, etc. Include in-kind items as well. Try to be as realistic as possible. Consider the viability of the project and its fundability. Make sure your budget is consistent with your other descriptions.

TEAM BIOGRAPHIES
Even if this is a personal project, film/video production is a group effort, and funders want to know the credentials of your team. If you do not have previous experience as a director or producer, make sure the rest of the people associated with the project are highly qualified. Include a comprehensive bio for yourself and all additional primary personnel.

SAMPLE REEL
The sample reel can be footage from the current project that you are trying to get funded. If you have not made a sample reel, submit the director or main producer’s previous work. Be sure to include a statement on how the sample reel relates stylistically or thematically to your current project. The sample tape is crucial in the fundraising process and is often required by funders. A strong sample strengthens your request for funding tremendously, while a weak one reflects negatively on your abilities as a director and will not bode well for the quality of the finished project.

DRAMATIC OR NARRATIVE PROJECTS
Applications for dramatic or narrative projects must also include a treatment or the first 10 pages of the script.

We strongly encourage you to contact Arts Engine, Inc., prior to submitting your application if you have any questions about the application process. All inquiries should be directed to:

Felix Endara
Filmmaker Services Manager
Arts Engine, Inc.
Phone: 646-2306368
Mail: Arts Engine, Inc.
Fiscal Sponsorship Program
145 West 24th Street, 3rd Floor
New York, NY 10011
E-Mail: .(JavaScript must be enabled to view this email address)

When are the deadlines?

Arts Engine, Inc., accepts fiscal sponsorship applications on a rolling basis. You may submit your project for review at any time. Please keep in mind that the review process takes between 2 and 4 weeks and plan accordingly.

What if I need more information?

After reviewing this material, if you have any additional questions, please contact Felix Endara at .(JavaScript must be enabled to view this email address)

Fantastic news greeted Greg Barker, as Sergio, his documentary about the late Sergio Vieira De Mello, former United Nations High Commissioner for Human Rights, premiered to great acclaim at the 2009 Sundance Film Festival. The film won its editor, Karen Schmeer, an editing award for U.S. documentaries.

Sony Pictures acquired international media distribution rights for By the People: The Election of Barack Obama. The documentary, by veteran producers Alicia Sams and Amy Rice (along with Edward Norton’s Class 5 Films), follows then junior senator Barack Obama as he campaigned for the Office of President of the United States. Previously, HBO had obtained domestic television rights to the film.

Jenn Shaw’s project, My Fellow Organizers (PDF), was highlighted in the Winter 2009 issue of Filmmaker magazine. Her film documents the cadre of community organizers volunteering for Barack Obama’s Presidential campaign in Pennsylvania.

More kudos are in order for Jeremiah Zagar’s In a Dream, which was nominated for an award at the second annual Cinema Eye Awards last March.

One of our newest fiscally sponsored filmmakers, Stephen Maing, was selected along with his project, High Tech, Low Life, for Tribeca All Access 2009. The program is an initiative run by the Tribeca Film Institute aimed at providing mentorship and guidance to filmmakers of underrepresented communities. Maing received an honorable mention for the Tribeca All Access Creative Promise Award at the Tribeca Film Festival in May.

The Good Pitch forum made its first stop in North America in May at Hot Docs after debuting last Fall at the Britdocs Festival. Out of 150 applications, five projects were selected. Three of those projects are fiscally-sponsored by Arts Engine: Resilient, produced by Salty Features with directors Sean and Andrea Nix Fine; Burma Soldier, the directorial debut of photographer Nik Dunlop and produced by Annie Sundberg of Break Thru Films; and Sean Flynn and Beth Murphy’s The Promise of Freedom. The filmmaking teams presented their projects and outreach plans to representatives of various human rights organizations, foundations, NGOs, and media. Enrico Cullen, Arts Engine’s Director of Development and External Affairs, was among those on hand to assist with strategizing about effective means of spreading their films’ messages.

Filmmakers Meg McLagan and Daria Sommers, along with ITVS, screened Lioness to more than 150 people at the House Veterans Affairs Committee Hearing Room. The event was a partnership between two veterans’ service organizations: the Disabled American Veterans (DAV) and the Iraq and Afghanistan Veterans of America (IAVA). The film was shown to members of Congress, Congressional staff, veterans’ service organizations, veterans and active duty soldiers. The screening was followed by a panel discussion with the members of “Team Lioness.”

Congratulations go out to Landon Van Soest and Jeremy Levine, whose Good Fortune will be competing in the Sterling U.S. Feature category at SILVERDOCS. The film is an incisive critique of the international aid industry and how its efforts—although well-intentioned—can end up undermining the communities it seeks to assist. 

Keir Moreano’s As The Call, So the Echo was released by Cinetic Media and Amazon.com, and is now available for purchase online. The remastered DVD includes the film, trailer, director’s commentary, and media interviews with some of the contributors to the film. For more information about the film and to purchase the DVD, go to www.asthecall.com.

Arts Engine welcomes several filmmakers to its stellar roster of fiscally-sponsored projects: Nik Dunlop and Annie Sundberg with Break Thru Films, Burma Soldier; Maital Guttman, Whatint Abafazi: When You Strike a Woman; Kirsten Johnson, Back to School: Armed With Books; Sandy McLeod and Dallas Brennan-Rexer, The Inheritance of Loss; Allison Berg, P&G: The Center of the Universe; Stephen T. Maing, High Tech, Low Life; Danielle DiGiacomo and Chris Kelly, The Cause of Progress; Sam Cullman, Parallax Sounds: Chicago on the Postrock; Ben Herson, Bronx to Bamako; Melanie R.W. Oram, Indelible; Andrea Eisenman, Nobody Should Know; Sarah Teitler, The Werewolf Effect; and Julie Gribble and Martha Davis, Doctors and Detainees. We look forward to helping them along in the paths to the completion and distribution of their films. 

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