think-outside-the-boxDo you have a creative project you’d like to get funding for? There are basically two ways of going about this – the for-profit method and the nonprofit approach. Both are workable and depend on the unique needs of your project. Both require a certain amount of business acumen, which you as an artist entrepreneur should always be striving for. Also, both tactics involve forming entities, so you should get the advice of a good attorney who does this kind of thing (since we’re not lawyers).

The for-profit model works well if your project looks like it is going to be profitable. Then you can, in good conscience, involve investors. To get investors these days requires having taken the project down a path so to speak wherein it has shown it can make a profit. This may sound like catch 22 – how do you make money to show investors you’re making money if you don’t have investors in the first place? If this is true of your project you may want to consider the nonprofit technique.

Nonprofit basically means you have a 501(c)(3) status or you have gotten a nonprofit umbrella (fiscal sponsorship) from an organization that does. Going with an umbrella can be a good choice if you are just starting out and means you can accept grants and donations, plus your donors get a tax write-off. This is the preferred process for doing movies in the current times, since it’s tough to make good with investors on the for-profit method. Though, in the case of a movie or any other kind of creative project, if you go the non profit route you need to make sure it it has a noble cause such as social justice.