So, the first one of our Goals for 2008 is to set up the company’s structure. Ultimately, the goal is to be a 501(c)(3) nonprofit organization, so that we - and our contributers - get all of the benefits associated with tax-exempt status.

The question is, when and how do we want to make that happen? Filing for tax-exemption is a lengthy and expensive process, and it’s not necessarily something that we need to do right now. Also, because we ultimately want to fund the program with an endowment rather than donations from the public, there may be other legal structures that would work better for our needs than just becoming a 501(c)(3) ourselves.

From the research I’ve done so far, it seems as though we have three viable options:

1. Get fiscal sponsorship with a company like Fractured Atlas, which would give us the benefits of a nonprofit without the hassle of incorporating immediately. I know a lot of small organizations take this route - sometimes indefinitely - and it might be a good way for us to start out. That way we could start operating as a nonprofit while we continue looking into exactly what kind of company structure we need.
2. Incorporate and apply for tax-exempt status now, so that we can start fundraising for ourselves. This is the most common route, but we’re not exactly the most common organization. From what I’ve read, it sounds as though you have to receive a certain percentage of your funding each year from public donations, in order to maintain tax-exempt status. If we’re planning on ultimately getting all of our funding from an endowment, I’m not sure if that qualifies as “public donations.” Any nonprofit lawyers out there who could help with this?
3. Set up a separate organization to raise money, which would then be granted to the Drama Farm organization. I don’t know a lot about this option yet, but I know a lot of educational institutions have a similar setup, so we need to find out why, and whether it would be appropriate for our purposes. I’ve got a few leads on this one, but if you know anyone with experience in this sort of thing, please send ‘em my way!

So that’s where we stand with Goal #1. We’re continuing to research and talk to our contacts about what our options are, but if you or someone you know has any insight into this, please let us know! Also, if you’d like to be more involved in helping us figure this stuff out, we’d love to have your help. Just leave a comment below, or drop us an email - we want to hear from you!

As promised, some more of my random ramblings as I sort through the whirling Boot Camp-induced tornado that is my brain.

When we last left our free-range dreamers, they were pondering this topic:

Find ways that doing what you do can help other people

Everyone always says that the best way to improve your own situation is to help others improve theirs - it’s sort of like networking karma.

Boot Camp was no different - in the welcome speech and the morning keynote, Darian Rodriguez Heyman and Ami Dar both talked about how using your resources to help the people around you will foster an attitude of cooperation and inspire others to help you with your own work. Darien even challenged everyone at Boot Camp to find two people they could help in some way over the course of the day - either by making connections, suggesting resources, or just sharing ideas. (I found my two!)

The thing that struck me the most about helping others, though, was in the Social Entrepreneurship workshop I went to. Rather than just helping other organizations in hopes of good karma bringing something back to them, Room to Read and GOOD Magazine have actually found a way to use what they’re already doing to help both their own organizations and each other’s.

When GOOD was ready to launch their magazine, they didn’t have the resources (or the desire) to conduct a $12 million direct mail campaign to find subscribers. Instead, they found some organizations with worthwhile causes - like Room to Read - and made a deal with them: Subscribers to the magazine would be given a choice of which of GOOD’s 12 nonprofit partners their subscription fee would be donated to in its entirety; in return for these donations, Room to Read (and the other nonprofit partners) would spread the word about the magazine to their existing base of supporters, encouraging them to subscribe to GOOD - in effect, getting a magazine subscription and giving a donation to Room to Read at the same time.

It’s a win-win situation: GOOD boosts their subscription base, thereby increasing their ad revenue (which is where they make their money), without spending $12 million to do it. At the same time, Room to Read gets even more donations, because their contributors are getting something tangible - a magazine subscription - rather than just a thank-you from the organization. By thinking about how what they were already doing could benefit other organizations, Room to Read and GOOD Magazine were able to join forces and make the most out of their combined resources.

So now I’m thinking, how could we do that with the Drama Farm? What would we be providing that might be of use to someone else? I’m still mulling over the possibilities - if you’ve got any thoughts on the matter, leave a comment - I’d love to hear your ideas!

So, I got back from Nonprofit Boot Camp at 8:00 last night, and my head is still spinning! It was almost 12 hours of fabulous workshops, keynotes, and chatting with other nonprofiteers, and now that it’s over I’m sorting through all of the new ideas and perspectives I’ve found. Here’s just a few of the big things I took away from it - I’m sure there will be more to come in the next few weeks, as I continue to ponder…

Make sure the nonprofit world is right for you

I went to three great workshops, all led by panels of amazing people, but the one that made the biggest impact on my fundamental plans for the Drama Farm was the Reality of Starting a Nonprofit workshop. Ninive Calegari of 826 Valencia (home of the fabulous Pirate Store, as well as many excellent writing and tutoring resources) strongly cautioned against rushing into becoming a nonprofit before exploring the many other options available to small organizations.

If all you’re looking for is the ability to receive tax-deductible donations, you should look into organizations that provide fiscal sponsorship. Basically, they extend the umbrella of their 501(c)(3) status to the organizations they sponsor, accepting tax-deductible donations on their behalf, and then passing the funds on to the supported organization. If you’re in San Francisco, take a look at Intersection for the Arts - they serve as fiscal sponsors of over 100 organizations in the Bay Area.

Another option is to have a fund set up somewhere like the San Francisco Foundation. People can donate money to the Foundation, earmarked for your organization. The money goes straight into your fund, and the Foundation then gives your organization grants out of that fund.

Ninive and the other panelists stressed how complicated the life of an organization can become once it incorporates as a nonprofit, and pointed out that many organizations may never need to. Other than tax-deductible donations for our contributors, the other major benefit the Drama Farm would get from becoming a nonprofit is that we wouldn’t have to pay income taxes - but until we actually have some income, maybe it’s not worth the hassle. So I’m pondering…

Use your Network!

Another thing that everyone stressed, in every workshop I attended, was using the power of your network. Here’s just a few of the key points:

• Ben Rattray of Change.org talked about empowering your network - making it easy and fun for your peers, friends and supporters to contribute to your organization - either by contributing money, getting involved, or just spreading the word to their own networks. Make them feel like part of the whole, and they’ll be more inclined to work for the betterment of the whole.
• John Killacky of the San Francisco Foundation talked about activating your network and cultivating relationships. Once you’ve got your idea nailed down, tell everyone you know. The more people who know what you’re doing, the more likely you are to find the people who are inspired about your plans and passionate about getting involved. Once you’ve found those people, keep in touch with them. Don’t just call on them when you need them - send them updates and progress reports; show them that their opinions and support are important to you, even when you don’t need something tangible from them.
• Jayson Morris of Room to Read talked about one way to activate your network - by creating a buzz list: ask your supporters to sign up, and when you’ve got something really important to spread the word about (the kickoff of a new fundraising campaign, an exciting new programming offer), send them an email. Even if there’s only 20 people on your buzz list at first, if every person on that list passes the word along to 10 of their friends, you’ve just increased awareness of your organization by 200 people! Just make sure not to abuse the list, or you might find yourself in their spam filters!

Find ways that doing what you do can help other people

I have a whole lot more to write about on this topic, but this post is already getting insanely long (there really is a lot of stuff whirling around in my head!) So, I’ll save this one for tomorrow - just to keep you in suspense! =)