Open House
A New Musical Film by Dan Mirvish
Because finding a home should be something to sing about.
Financing Options
There are two primary ways to support the production of Open House. You or your company can make either an indirect contribution or a direct investment depending upon your needs and long-term goals. This page will go over the two options in detail:
I. Indirect: Grants, Donations, Endowments
Technically will be made to the California not-for-profit (501C3) independent film support organization, Filmmakers Alliance - which will in turn disburse funds to Bugeater Films, LLC, for the express purpose of financing Open House.
- Advantages:
- All donations are immediately tax deductible.
- Certain foundations or public funding sources that are required to grant monies only to non-profits will want to use this option.
- Will be listed in credits, press releases and website, in addition to any other product placement arrangements.
- "Executive Producer" credits may be available.
- Invited to all premieres, festivals and other special events.
- There is no minimum or maximum contribution limit.
- Disadvantages:
- Will not share in profits.
- Filmmakers Alliance deducts a 5% administrative fee from all donations.
II. Direct: Private Investment
Individuals or organizations will be able to purchase units directly in Bugeater Films, LLC, with a unit price of $5,000. There is no minimum to the number of units investors can purchase.
- Advantages:
- Will share in all profits.
- If there are no profits, the investments can be written off taxes over time.
- Will be listed in credits, press releases and website, in addition to any other product placement arrangements.
- "Executive Producer" credits may be available.
- Invited to all premieres, festivals and other special events.
- Disadvantages:
- Investments are not immediately tax deductible.
- Certain foundations or public funding sources may be precluded from this option.
- Disbursement schedule:
Any income derived from the sales or licensing of Open House or its associated rights (ie. music rights) will be disbursed in this order:
- 1. Any outstanding debts owed by the LLC will be paid back first.
- 2. All contractually bound "deferred" pay to cast, crew or vendors.
- 3. All private investors in the LLC will be paid back their full investment, plus 10% (considered as interest).
- 4. Any additional money that comes in will be considered net profit and will be split 60% to the private investment pool, and 40% to the "creative team." The creative team will consist of the director, producer, writers, composer, choreographer, some cast and crew. Known as "points," this 40% will be divided according to individual employment agreements as a way to incentivize these individuals to work for less than standard motion picture wages.
Disclaimer:
Investment in a project of this nature involves substantial risks, and should not be undertaken by those individuals or organizations who can not afford those risks. Anyone seriously interested in contributing should consult their own tax professional for complete tax advice. This website should not be construed as a formal offering or complete business prospectus, but rather is designed to give a general overview of the project.
