Getting Donations For Your Film

[Jim Brennan]

There is currently a thread regarding how one filmmaker is using donations through the internet to fund his film. That conversation has branched out to include other methods, including product placement. I thought it would be worthwhile to start a new discussion regarding the particulars of getting local merchants and suppliers to donate to a project.

I know a few filmmakers in town have had success going to both manufacturers/suppliers of goods, (either consumables like water/soft drinks/snacks, or props), as well as both brand specific vendors (like a sandwich chain), and more general vendors (like a restaurant or box store) to get donations for a project.

So let's chat about this.

We need to know how to sell this concept to the potential donor. So how can we do that?

1) Product placement is one possible pitch, and if the film can feature something in a way that works within the story, and is prominent enough to satisfy the donor, that can be a great help. But in order for a 'product placement' pitch to work, I would think the donor has to believe that people will actually see the movie. Since you are selling something that hasn't been made yet, you are really pitching yourself. Keep that in mind.

2) Is something like this a tax deduction for the donor? If so, what circumstances would allow that? Are the complications of that worth it for smaller donations, like a few cases of bottled water? I don't expect anyone to give specific tax advice in an online forum, but if anyone knows if this aspect is even worth pursuing, please pipe in and give us your feedback. If this is a possibility, then it enables us to go to vendors whose products or services we can't feature in a product placement (like a catering service, or something similar), and give them something concrete to offer in return.

3) There are people who do this for you. If you google "product placement services" you will get a bunch of links on this. Now, whether they are worth your time and effort, or you are worth theirs is up to you to decide. I just thought it was worth noting that they are out there. As with the Tax deduction point, if anyone has any particular experience with this type of service, please pipe in.

4) Local may be better. I have nothing factual to base this on, other than a few stories I have heard from a few local filmmakers, but I think there may be something to it. Go to local, Colorado based companies and pitch them not only your project, but talk about a sense of community, local and state pride. Let them know that you are giving them a chance to show that Colorado is more than the Broncos and Coors beer (unless you are pitching the Broncos or Coors). If your film gets picked up, all of a sudden a bunch of people on both coasts are wondering what kind of soda that guy is drinking in the shot. I wouldn't suggest ruling out national chains and brands, but you might have more success locally.

5) Say THANK YOU It might seem obvious to some, but include the people who helped you in the credits, invite them to the screening, and even give them a copy of the finished product if you think it's appropriate so they can see their name up there. It's a small gesture, but it can mean a lot

Thoughts?

[Rick Shipley]

Nice post Jim and I agree with you 100%. Here is some ideas that some folks may not thought of. Gathering promotional items and auctioning them off in the donator's or company's name can be another way of raising funds. Before I go on, let me explain what I mean here. Say a movie theater owner wants to help your project out but can't afford to give you money but is willing to donate some old movie posters and other freebees. You could in turn around and put them on ebay to turn them into cash. That theater owner or company could still be listed in the Special Thanks credits and you could consider the money made off of these items was donated by him.

Also it was mentioned on another thread that holding a fundraising party is also an great idea for raising funds as well as getting promotional items. Back in Baltimore you could hold a Dance (with a live band), Bull Roast or Crab Feast if you had access to do such a thing at little to no cost, I don't know what the folks in Denver do that is similar. I do also agree that it should be done with little to no out of pocket expense.

The point is that even donated items can sometimes be turned into cash.

I am all about utilizing product placement and advertising funds to help fund your feature. What some folks may consider is on the DVD, you could sell a commercial spot for funds. Does everyone remember that when Top Gun came out on VHS? There was a Pepsi commercial before the movie previews. DVD offers something a little different, under the Special Features section, you could sell commercial space.

Just try to think outside of the box and remain positive.

As far as tax breaks or incentives, I don't know how that works, especially in Colorado. From what I understand, this state doesn't really like to help the film industry. I've heard it explained that the folks here don't want this State to become the next Hollywood. Personally I think that isn't the best attitude to have. People in this town seem to be very proud to be from here and not being able to show it off to the rest of the world is no fun. The last movies I remember seeing that promoted this State was Things To Do In Denver When You Are Dead, Catch & Release (Boulder) and recently I watched an older flick, Continental Divide. I heard Bucket List was shot here but I've never seen it.

Rick

[Coloradosploitation Films]

This state is aweful as far as film tax breaks is concerned....worse still, we're right next door to New Mexico, which is one of the best states for them, and offers much of the same look.
Product placement is a great way to get something for [next to] nothing, just don't expect it to be cash. Cocacola and burger king may be lining up around the block to invest in Shrek part whatever, buy why should they give money to your film? Does Gary from your film class and Terry from the local theater really warrent Pepsi to give a crap? Not unless it's Scarlett Johansen and Natalie Portman in your epic remake of 'Two Girls, One Cup.'
So what can you get out of the deal? Stuff. Lots and lots of stuff. I did a film where I needed signs to make a back entrance to a donut shot into a bar. I talked to the Carona rep at the local liquor store so i could get some carboard signs....and ended up with three cases of beer. We turned that beer into a good start for a fund raising party....along with a similar donation from Tecate.
Local restaurants are great for product placement as well.......not because they'll put cash directly in your pocket, but because they may be willing to feed your crew for a few days [hopefully more] in exchange for their storefront being in frame. This will save you enough cash to maybe be able to shoot your daring finale where the hero proves his love by blowing up a cow with a rocket launcher.
Ah, young love.
Also, look at your local bar. Are you greeted with a handshake and a smile whenever you come in? Has the amount you've put into the bartenders pocket over the years overshadow the time you drank too much and pulled the urinal off the wall? Then you may have the perfect location for a fund raiser! How do you know it's perfect? Because they're not charging you for it! If the Santa Fe art gallery wants to charge you three hundred an hour to host a fundraiser there during the three weeks before their business fails and they're evicted, DON'T DO IT! Never risk losing money in a situation like this.
Then you need to find a band. Well guess what, every jerk and his jerk brother plays and instrument, and most are in a band. Convince them to play a show, qualified or not. Tell them it'll be 'great exposure' and how you'll 'put them on the soundtrack and turn them into stars' [sign nothing to this effect]. Round up anyone with talent. Jugglers, strippers, anyone willing to get on stage and entertain people. Charge five bucks at the door and hope for the best. Even if you make only enough to fund one day of shooting, you still win. Keep in mind that every producer needs to be at least part PT Barnum.

And if all else fails, there's always crime.

[Jim Brennan]

Good comments. Focusing back on the logistics of people donating products or services to your shoot, does anyone know if there are financial (tax) advantages to the donor?

[Jesse & Ana Cordova]

IRS Non profit status letter from IRS 501 (c) would give a tax break to the donor, So like I recently got a about $xxxf product from whole foods, and another $ x,xxx in product from Jointjucie.com I am a member of the Under Water Hockey USA which is under the Under Water Society of America(USOA) along with Nine other water sport groups, I kindly requested utilization of there 501 from the president of the organization USOA shared a little product for one of their event and used some form my project . I requested everyone at our event to write a thank you letter to the organization for donating. In turn the donor will get a DVD of clips of where I placed and used their products in my GIG, and on set.
So in essence I utilized someone else's tax ID to benefit my project so it was a win, win! I suppose if I was a non or not for profit, I wouldn't need that 3rd party. call it IRS Non profit status letter from IRS 501 (c) would give a tax break to the donor, So like I recently got a about $xxxf product from whole foods, and another $ x,xxx in product from Jointjucie.com I am a member of the Under Water Hockey USA which is under the Under Water Society of America(USOA), I kindly requested utilization of there 501 from the president of the organization USOA shared a little product for one of their event and used some form my project . Had everyone write a thank you letter to the organization for donating. In turn the donor will get a DVD with their products in my GIG.
So in essence I utilized someone else's tax ID to benefit my project so it was a win, win! I suppose if I was a non or not for profit, I would need that 3rd party. Call it savoy, slighy or what ever but I didn't lie or mislead anyone.

[Darlene Cypser]

1) Product Placement -- Jim you are under estimating the offering. Typically a product placement offering includes not only screen time for the product which usually includes the caveat that it might end up on the cutting room floor, but also display of banners off set (usually near craft services) of banners or signs listing sponsors, listing in the credits and display of sponsors names and logos on the movie website. What the filmmaker receives is typically in kind products or use of products and the all-important trademark release for use of the logos.

2) Tax deduction -- I practiced tax and business law in Boulder from 1987 to 1999. So I know a bit about this. Donations of inventory products is no more or less a tax deduction than any disbursement of inventory. The cost of inventory used up is deducted from the income. Otherwise the business owner could not deduct it because donations usually cannot be deducted unless they are to an approved type of charity (501(c)(3) etc.) If cash were provided for produce placement that would be considered an advertising and marketing expense and deductible by the business as that.

3) There are people who will do this for you. -- So I hear but I've yet to find anyone who was good at doing it. I've heard some of the services cost more than they deliver. The biggest tip I have about connecting to national product placement possibilities is this: www.erma.org

4) I think you can do a mix of local and national. Some national chains are very indie friendly whether based here or not. Some local restaurants will do fantastic product placement deals. We've had props, foods, meals, bottled water, and fabric for costumes contributed.

The most important thing in approaching anyone about product placement is to act professional.

[Rick Shipley]

But didn't you say that getting money or donations aren't likely to happen with the economy the way it is Darlene?
; )

Since Jim has said that you have done this MANY times, could you give us some insight on approaching companies or business?

Personally, I feel that during preproduction, the production team should come up with a list of things that are going to be needed and things they want to use. An example could be: Say you have a bar scene. First you will need a Bar. Next would be Beer and/or Liquor. In the past I got in touch with car clubs for outside the bar. Also I have gotten video game companies to wheel in a poker game and pool table. I've gotten posters and banners for the walls. I got costumes from a local thrift store. Guns from a airsoft distributor. (On a side note, I did pay $35 for use of the bar, but I didn't pay for anything else.)

If one wants to get creative with this, you could supply most of your production by doing the same thing for every scene. It is also a snowball effect as well. Once you have one or two companies lined up, others will want to follow and get involved. Then by stretching the truth a little, you can get more and more from each new business.

[Darlene Cypser]

"But didn't you say that getting money or donations aren't likely to happen with the economy the way it is Darlene?"

Not at all. I have no idea where you think you saw that. We've had a number of items donated to our productions in the last six months. What I said was that it is rare for businesses to pay cash for product placement to independent films. They are much more likely to give in-kind contributions such as providing water, food or props for your production. For example, Competition Hearwear donated bolts of fabric to The Highwayman which we have used to make costumes. It has saved us hundreds if not thousands of dollars. As Jim can tell you since he was at my pre-production class last year, I always encourage independent filmmakers to seek product placement.

[Darlene Cypser]

In another posting Leigh Ann suggested Freecycle as a place to get donations of props, set dressings etc. I have found it useful.

[Jim Brennan]

Very true. Just be careful not to subscribe to the e-mail version of the listserve, unless you want your inbox to be flooded.

Thanks Darlene.

[elizabeth rivera]

I want to say thank u! I been looking foe a co producer and yuor sugestios came in handing I will resech the ifo you provided it open up new doors for me thanks!
Elizabeth Aka Lezzett

[Jim Brennan]

We are still in the midst of production for Jimmy Said, but even now I can tell you that donations have been a huge help to us.

MaryLee Herrmann and Mona Maser have done an amazing job of getting us meals, either in a restaurant, or on the set. There's nothing like good hot food to keep a cast and crew motivated. And it's even better when it's free.

MaryLee has also gotten a seemingly endless supply of bottled water from Eldorado (thank you very much), donated locations from a variety of places, 'prop' beer from the Boulder Brewery (mmm...beeer), and has even gone so far as to ask Radio Flyer for a red wagon, which they shipped her promptly, free of charge.

All of this is on top of the vast number of crew, actors and other people that have helped us out in a variety of ways. We have gotten the use of specialty props, art direction and graphics by local professionals like Mark Grove, Ken Jones and Jake Newsom either free or at a significantly reduced rate. My guess is that part of the generosity people have shown stems from the script, and part of it came from the people involved and the way they asked.

I am hoping that MaryLee will spend a little time here once we wrap to outline how she works her magic. I have done this type of things before, but never on this scale. She, along with Mona, have not only taken a lot of these logistical things off of mine and Patrick's plates, but their efforts have allowed us to put our capital in other places.

Donations help, and they can be had if you know how to do it. Find yourself a MaryLee. Whatever they cost, they will save you time and money.

[Jim Brennan]

I just want to clarify a few things about my post above.

1) I did not mean to imply that all of these vendors gave us a bunch of stuff for free. So don't start making phone calls saying that "Jim says you gave the Jimmy Said crew free stuff". Some things were donated in exchange for a credit/thank you/mention on the website/ or product placement. In some other cases we worked out another, mutually beneficial relationship.

2) Finding someone like MaryLee is an INVESTMENT. Don't assume that you are going to get someone who can work magic like that for free. Good, long-term relationships are mutually beneficial. Whether it's a writer/actor/producer/PM or whatever. Offer people more than the mere honor of being a part of your project. People that have been around and know what they are doing are long over the thrill of working on a movie. Pay them, or offer them some other form of compensation. What they bring to the table is worth it. One of the most important lessons a producer can learn is that cost and value are not always the same.

3) Don't go to the same well all the time. If I say that Restaurant X gave us a free meal, that is not so YOU go to that same restaurant and ask for the same thing. That will not only yield poor results for you, but it will sour them for future people. What it does mean is that the process works.

Thanks