Dear Eric: We have friends who consider themselves film directors and have made a number of no-budget films.
We have assisted him as cast and crew, but my husband, a professional film editor, has edited and finished two films for several years without pay.
Initially, the friend set up a GoFundMe to help with filming, festival admissions, and other costs, as is common with such projects, and many of his friends donated.
He’s currently working on his fourth movie and before a day of shooting has even finished he is once again asking all his friends to donate. He says donations are tax deductible. I’m not sure about his 501c3 status, but I do know that he doesn’t have a corporation set up.
We have no intention of donating to his work, but we worry that these same people are giving him more money than they can afford and then probably putting the money on their tax returns.
These people get nothing for their donations other than a thank you credit at the end of the film. There is no accounting for the money raised, leaving us with a sense that our friends are, at worst, scammers and, at best, irresponsible in how they spend their friends and their money.
Should I focus on myself or should I do something to warn the GoFundMe people that their money is just an ongoing scam to support a “filmmaker” and he is spending it frequently?
– Calling “Cut”
Dear Kat: Since you note that this is his fourth film, I don’t think the word “filmmaker” needs to be in quotes anymore. By your description, he did what he said he would do: he made the film! If you want an explanation of how he spent the money, ask.
But I think playing the role of GoFundMe whistleblower is going to be more trouble than it’s worth. Your friends and other donors read the same solicitation emails and attended the same screenings as you. They can judge for themselves.
It is in every artist’s best interest to continue to grow their donor base, both as a way to build a fanbase and to avoid exhausting their original supporters. That’s exactly what happened here. Your friend lost you as a donor because they asked for your favor too many times and didn’t do the proper relationship maintenance. This can be a costly lesson for some artists.
Another costly lesson for artists? Tax evasion! GoFundMe makes it clear that donations to personal fundraisers are generally considered personal gifts and are not tax deductible. The site has a separate portal for charitable fundraisers where those with 501c3 status can register their organizations.
If donors don’t get a tax-deductible receipt from the charity (GoFundMe doesn’t provide one), they’re going to have a hard time getting it to their accountant.
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(For questions, please contact R. Eric Thomas. Contact me at eric@askingeric.com or PO Box 22474, Philadelphia, PA 19110. Instagram Sign up for our weekly newsletter Source.
