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 Post subject: 501c3 or 501c7 for all ages venue
PostPosted: Fri Jan 11, 2013 1:42 am 
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Cam and I were just talking and I asked if the Chestnut crew had considered going to 501c3 path and it's not something that was really on their radar. Obviously, someone's gonna need some start up capital (kickstarter it?) and there are some other interesting options if you go the 501c7, too, especially if you tie it to a para-corporation. I am not a lawyer, but I thought it might be a useful discussion to start. For those of us who were lucky enough to grow up at a time when you knew where there would be all ages shows every week, we know the effect that had on the scene. Consistency is key, as well as a considered plan to stay in the black.

I forgot if If I asked Bryan about whether or not the OG Brycc house was 501c3 and how that played out for them. That said, just search for 501c3 and music venue on google and the massive number of organizations makes me feel like this is plausible.

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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Fri Jan 11, 2013 8:47 pm 
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evenmoregeneric wrote:
Cam and I were just talking and I asked if the Chestnut crew had considered going to 501c3 path and it's not something that was really on their radar. Obviously, someone's gonna need some start up capital (kickstarter it?) and there are some other interesting options if you go the 501c7, too, especially if you tie it to a para-corporation. I am not a lawyer, but I thought it might be a useful discussion to start. For those of us who were lucky enough to grow up at a time when you knew where there would be all ages shows every week, we know the effect that had on the scene. Consistency is key, as well as a considered plan to stay in the black.

I forgot if If I asked Bryan about whether or not the OG Brycc house was 501c3 and how that played out for them. That said, just search for 501c3 and music venue on google and the massive number of organizations makes me feel like this is plausible.


I'm 90% sure that the Brycc House was a 501c3. One of their biggest boons (aside from having really good grant writers on board) was having a sympathetic councilman on their side.


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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Fri Jan 11, 2013 11:22 pm 
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no fun wrote:
evenmoregeneric wrote:
Cam and I were just talking and I asked if the Chestnut crew had considered going to 501c3 path and it's not something that was really on their radar. Obviously, someone's gonna need some start up capital (kickstarter it?) and there are some other interesting options if you go the 501c7, too, especially if you tie it to a para-corporation. I am not a lawyer, but I thought it might be a useful discussion to start. For those of us who were lucky enough to grow up at a time when you knew where there would be all ages shows every week, we know the effect that had on the scene. Consistency is key, as well as a considered plan to stay in the black.

I forgot if If I asked Bryan about whether or not the OG Brycc house was 501c3 and how that played out for them. That said, just search for 501c3 and music venue on google and the massive number of organizations makes me feel like this is plausible.


I'm 90% sure that the Brycc House was a 501c3. One of their biggest boons (aside from having really good grant writers on board) was having a sympathetic councilman on their side.


Yes we were 501c3. We did not have good grant writers on board, tbh; we had someone who was committed to the project on the Metro Council. Good grant writers are hard to find, for one, as are good grants that would fund a project like BRYCC. Part of our failure, actually, was in the thinking — which we learned from some professional activists/grant writers — that corporate grants would be a feasible revenue stream for the lion's share of funding project even before it was well established. I remember budgeting meetings before we opened where all these figures, that turned out to be outlandish, were thrown around regarding revenue to be garnered from grants. The money that's out there, like I said, is really hard to get. There are a lot of people competing for it. You really have to make a strong case for deserving it over some more established project.


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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Sat Jan 12, 2013 3:10 pm 
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Robert wrote:
Part of our failure, actually, was in the thinking — which we learned from some professional activists/grant writers — that corporate grants would be a feasible revenue stream for the lion's share of funding project even before it was well established.


that's where the para-corporation comes in and opens up revenue streams that are typically associated with for profit businesses.

And I know this is a touchy subject, but as I understand it, there are ways to tie both a c3 or c7 to a para-corporation and have a venue that can also sell booze. Because of the way the local ABC works, booze would only be able to be sold in a separate room with a single point of entry with a person checking id, so to have booze as a revenue stream (let's face it, this isn't the worst idea for revenue in this city if you know what you're doing and how to handle the ABC), you'd need a set up like headliners, and you could only have a liquor bar in the balcony or that weird side room- or any theater-type space would be ideal if you could secure the balcony. and the booze can't leave the bar room.

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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Sat Jan 12, 2013 7:12 pm 
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a good lawyer to contact might be Joe Dunman - he's a hardcore dude involved in the OG BRYCC and just passed the bar.

another person who may be good to talk to is Yarmuth. I know he's a busy man but there's no reason why you can't try to set up a meeting. Its a good way to get the ball rolling.

id love to help however i can.

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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Sat Jan 12, 2013 10:52 pm 
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I went back and forth over whether to go 501c3 or LLC for Skull Alley. I opted for LLC mainly because I wanted to include the beer to help make the place more financially stable, and I remembered the general struggle for funds/focus that BRYCC had. In retrospect, I think 501c3 groups CAN get an ABC license so that point might have been moot. At worst, you may have to apply for event permits for each event you want to serve alcohol.

to form a 501c3 you need:

1. Board of Directors - you need at least a president, vice president, secretary, and i believe treasurer. Board must meet at least once a year and keep detailed minutes of their meetings. meeting minutes are public domain and must be kept on file. For brycc we had a lot more members than 4, 50% of which had to be youth (defined as anyone age 25), and included outsiders from the community for "guidance."

2. Mission Statement - A short statement of purpose that describes how the organization would benefit the community. "to provide a place for the rock" probably wouldn't work, but "To establish a community center where young artists can interact and thrive, etc. etc." probably would.

3. Articles of Incorporation - written guidelines for the board/group structure. How long board members serve, when the meetings are, limits on pay for board/employees, how voting works, how new amendments get added, how to remove members, etc. etc. etc. Basically you are creating a legal framework for how your group will run and how it may handle any issues that may arise.

4. Filing fee - I believe its $300 for federal, $75 for state.

Boom, I think that's it if i remember correctly.

Now, you'll have to keep ridiculously anal retentive books because you can be audited at any time. You file taxes for federal and state yearly, sales tax monthly or quarterly (you are responsible for sales tax on all ticket sales, concessions, shirt sales, basically anything you physically sell, but not on donations and i think memberships), and have to keep track of everything anyone donates to you (cash, equipment, etc) in case irs audits someone who claims a donation to your group.

Grants: it's easy to get grants for small things like adding a darkroom, paying for a sound system, or teaching a workshop on underwater basket weaving, but it's hard to get grants for things like rent, utilities, or capital campaigns. Basically, foundations want to fund groups that can show that they are sustainable in terms of their grassroots fundraising to keep the lights on and the doors open but need extra funds to add programming. I think outside of the two grants from the city, which were from an alderman discretionary fund and not a general grant, OG Brycc didn't get any other outside grants.


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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Sun Jan 13, 2013 2:48 am 
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I had an interesting conversation about this subject with Michael Zerang during Cropped Out last year, and from his perspective, you wouldn't even need to form a 501(c)3 to do a non-profit specializing in booking/music curation. According to Michael, there's a few small art organizations in Chicago that actually work together with existing, larger non-profits, as opposed to incorporating themselves. Not entirely sure how the mechanics would work, or if there would be willing partners in Louisville, but it's worth considering, at least from an efficiency point of view.


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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Thu Feb 07, 2013 3:32 pm 
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There is another place in Louisville that will be hosting all ages shows, but we are only trying to do it about once a month. There is a wearhouse on 17th and Maple, the future home of the Louisville Stigmatorium Oddities Shoppe, and any band wanting to book there should contact me at spiders4eyes@hotmail.com, thank you. - Johny

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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Thu Feb 07, 2013 3:44 pm 
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That name is an awesome mouthful. Good luck!
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Louisville Stigmatorium Oddities Shoppe

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 Post subject: Re: 501c3 or 501c7 for all ages venue
PostPosted: Sat Feb 09, 2013 8:02 pm 
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The Stigmatorium, for short. We will also be trying to do b-movie nights once a month, or more..

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