BY BOB LABATE
Anyone who attempts to create a documentary film should be prepared to face four separate challenges—Formation (Getting Started), Financing, Production and Post-Production/Distribution. In last month’s column, I reviewed common "Formation" challenges based on comments made by a panel of documentary producers and entertainment professionals at a recent seminar held at Columbia College. (For more details on the panel or contact information, visit www.mbc.com.) Now it is time to discuss what many consider to be the most difficult part of documentary producing: Financing.
The Funding Marathon
Most successful documentaries begin with lots and lots of research, which then leads to a story line (or lines). This leads to the preparation of funding proposals together with preparation of a demo tape in support of the such proposals. Such "development" work is tedious and time-consuming, but is essential if the filmmaker wishes to find his or her "focus," which means telling a story, within time restrictions, that will appeal to a general audience.
Unfortunately, there are few sources of documentary development funding and what development funding is obtained is never enough. So the money needed to complete the development process generally comes from the documentary producer or the production company. Development costs can be quite significant and, because most production grants are "forward-looking" (that is they cover only those costs incurred after the grant is awarded), development costs are often total losses for the producer.
This does not mean that you give up your project. Rather, you should recognize the need to prepare two separate budgets, one for the cost of developing your documentary project and a second, larger budget, for the actual cost of production and distribution. It also means that you should understand that financing your documentary is like running a marathon. Pace yourself, budget your time and allow for at least 18 months (and often 2 years) to obtain full funding for your project.
The Funding Campaign
Rarely does funding come from one source or at one time, and a foundation that rejected your written proposal last year may agree to fund if you add a strong demo to this year’s application. Thus, good preparation is essential and organizations such as the Nonprofit Financial Center (www.nonprofitfinancial.org) can help you to prepare a successful grant proposal including your production budget. Grant writing is never easy, but with the help of the NFC or similar organizations you increase your chances of obtaining support.
Also, consider teaming up with an individual or company that has a record of success with producing and distributing documentary films. If you read last month’s column you know that I’m wary of "Fiscal Sponsorship," (that is, an arrangement whereby an existing tax-exempt NFP agrees to "sponsor" your company so that you might qualify for foundation grant money), but there are a number of NFP’s that are both reputable and successful.
Following Guidelines
Whether your production company is a for-profit entity or an NFP, your "treatment" and your budget are the cornerstones of any funding proposal. Your treatment should convey your passion for the project, focused on conveying your essential story line, and it must be consistent with the applicable guidelines of each potential funding source.
As a start, take a look at the Web site maintained by the Independent Television Service (www.itvs.org) as well as the Web site for the National Endowment for the Arts (http://arts.endow.gov). ITVS is a major provider of PBS documentary films and both Web sites provide deadlines for submissions, guidelines and copies of applications for downloading. Each provides funding for only a small number of applicants (about one percent for ITVS) so local foundations should be identified and included in your list of potential funding sources. Be aware, however, that many local sources may require some "community" benefit from your project, so plan accordingly.
Your budget must be realistic, comprehensive and should include a fair estimate of all expenses, including those that are often overlooked, such as legal. Use a model that has worked for other applicants and make sure you know the tendencies and limitations of the various funding sources you approach. For instance, ITVS grants range from $40,000 to $300,000, so do not expect full funding if your project budget exceeds the ITVS funding range. Obtaining support from various sources is routine and anticipate that production may be on a "rolling" basis. But be careful not to commit yourself to produce a $700,000 documentary if probable funding is only $300,000.
Do not expect that a funding source will change its guidelines just for your project. For example, HBO is known for funding only "edgy" projects and winning a grant from ITVS (itvs.org) normally requires submission of a first-class demo tape along with your application. Those who fail to pay attention to official and unofficial guidelines will not be rewarded.
Finally, never take rejection from a potential funding source personally nor let it prevent you from filing funding applications or proposals. For example, one of my clients was rejected by a major funding source but eventually obtained significant funding from that same source after refining her proposal and adding a demo tape to the package. As long as your proposal is well written, professional and appropriate to the source, there is no reason not to apply to number of sources.
© 2002 Robert J. Labate. This column is provided as a source of information and is not to be construed as legal advice or opinion. You may contact me through our firm’s web-site (mbc.com), via email at labate@mbc.com or, via mail, to Bob Labate, McBride Baker & Coles, 500 West Madison Street, Suite 4000, Chicago, Illinois, 60661 312/715-5700.