Funding Challenges Independent Filmmakers Face

Crowdfunding

One of the most vivid recollections from my early Mennonite childhood was the ‘passing of the plate‘ where everyone put money into a wooden plate that was pass hend to hand, and row on row in church. I guess the grown up version is crowdfunding.  Instead of plates, we now have websites like Kickstarter, Indiegogo and GoFundMe. filmmakers can approach potential backers with their project.

“Veronica Mars” remains the record holder for the most money raised in the shortest amount of time. Some $2,000,000 was raised in ten hours, with the campaign netting over $5,000,000. Blue Mountain State raised nearly $2,000,000. Many films have a crowdfunding element in their financial plan. The Babadook, for example, raised $30,000 to finish some special effects. All proof that the idea of a crowdfunded plan can achieve its goal — and some — if properly planned and marketed.

Reality check
How robust is your social media following, and how determined are you to create an manage a crowdfunding campaign. Remember that ‘free money’ is hard work. I’ve found that a realistic target of £3-5,000 is most likely to suceed.

Grant Applications

All kinds of governmental, arts councils and charitable foundations push money out for filmmakers. Here’s a great list of available grants. In order to apply for a grant, you first need to research the funding body you are applying to. Better not to exhaust yourself looking at the wrong funding source. Then you need to prepare a artsistic statement – a one or two page letter introducing yourself, and how the granty will help you achieve your goal. You’ll then need to deliver a treatment followed by a budget. You might want to create a mood board, and a sizzle reel. And of course, very important, is the accumalation of endorsements from industry and community leaders.

A fellowship is another way you can fund your film. A fellowship, unlike a grant, usually means you will be required to deliver some sort of support to a local community in exchange for cash and mentorship.

Reality check
Grant awards are competitive. There are always more applicants than money to fund them. And if you want to do it right, you need to do your homework to find out what the granting body is saying about the larger message they want to portray. Your application will be time-consuming to complete.

Pre-Sales and Licensing Deals

This relies on selling distribution rights but prior to the film being produced. Genre-driven films fare better in this scenario. and of course, if you have recognisable talent attached it’s a lot easier. A lot depends on the property your film is based on. For example, if you have the movie rights to a well known book, or the true life story of a person still living.

Licensing television or streaming deals are another way to access initial funds. The contracts have been created to provide some degree of distribution surety — a nice thought for buyers since it cuts down on the prepayment risk of paying for something never seeing the light of day on TV.

Be it a Pre-Sales or License deal – you will then need to get a bank to loan against your deals.

Reality check
This route has become more and more difficult to use to secure funding. It is reliant on the properry your film is based on. Obviously, the hotter the better.

Co-Productions

Co-pros are one of the most interesting challenges independent filmmakers face. Simply put, a co-production is a collaboration with filmmakers in other countries. each party to the co-pro deal vends in their county’s tax breaks, subsidies and grants for a film made in that country. Shared resources are another way to keep down the budget. The exchange is usually an equity position in your film.

Reality check
Co-production makes a great deal of sense. But it also involves a great deal of networking. You need to understand international co-production treaties (and the ability to negotiate them).

Angel investors

There are individuals willing to fund independent film in exchange for a portion of the film’s profits. Sometime the funder will find your film champions one of their personal goals. Other times they are simply intrigued by the film industry. And occassionally they want to lend you a helping hand. Whatever the scenario, make sure you have a good, clear understanding detailing thier expectations and demands and written up in a contract.

Reality check
The biggest drawback is when an angel investor threatens you with artistic control. That’s the major pitfall. Beware.

Deferred Payments & Collaborations

Here’s gthe play. You find a cast or crew member. You agree a price for their sevices. And then you get the person or supplier to agree to be paid later, out of profit, if any. But bewre if you are working in the UK. Since 2010 it is illegal to employ any cast and crew without paying minimum wage, currently £12.21 per hour or £7.55 per hour for apprentices. Equity also has rules about actors and their minimum wage. These rules change if your production is an educational project where your cast and crew receive traning. It is a legal minefield, and make sure you understand the rules. Even a collaborator needs to be paid minimum wage. And of course you can offer percentage points in the profit on top.

Reality check
Un the UK the employment rules pretty much have kicked tghe ‘friends and family’ approach to cast and crew into touch.

Guerrilla Filmmaking

Making a movie outside of the traditional industry norms is what Raindance is all about. It works like this:
make a list of all the assets you can use inexpensively. Once you have your list together, write a script that utilises all of the elements.

Reality check
Making a film with what you have access to can be inspiring. It can also be frustrating. But at least your film gets made.