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    Kathy Bonner's Avatar
    Kathy Bonner Posts: 4, Reputation: 1
    New Member
     
    #1

    Sep 29, 2008, 06:48 AM
    How to start a support fund
    I am interested in learning how to start a financial support fund for a new musician. He is building a fan base after having great exposure on a Canadian TV show. Maybe he will be offered a recording deal;however, is there a way for his fans to start providing financial support for him now? Can we set up a support fund at a bank in his area? Can it be set up so that fans can donate on-line?
    How do I start a financial support fund for someone? Can I just set it up at a bank in their area? Will people be able to donate on line?
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #2

    Sep 29, 2008, 06:52 AM
    First, please don't start multiple threads. I merged this with the other thread.

    If you want this to be a charitable donation, then you will need to set up a tax exempt fund (501c). So you need someone to make sure get the IRS setup with this. Once you get your tax exempt status, then you can take it to a bank to setup the accounts.

    But frankly, I can't see getting tax exempt status for a struggling musician.
    Kathy Bonner's Avatar
    Kathy Bonner Posts: 4, Reputation: 1
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    #3

    Sep 29, 2008, 07:38 AM
    Quote Originally Posted by ScottGem View Post
    First, please don't start multiple threads. I merged this with the other thread.

    If you want this to be a charitable donation, then you will need to set up a tax exempt fund (501c). So you need someone to make sure get the IRS setup with this. Once you get your tax exempt status, then you can take it to a bank to setup the accounts.

    But frankly, I can't see getting tax exempt status for a struggling musician.
    Hi. Thanks. I'm new at this so didn't know about "threads" etc. I'm not interested in getting into setting it up as a charity for tax exempt purposes. Funny, when I tried to figure out how to reply to you, I hit " Support this user" and et voilą, there was a paypal page so I could support you! How can I set that kind of thing up for this other person?? Many thanks.
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #4

    Sep 29, 2008, 07:42 AM

    Contact Paypal. They can provide you with the code to setup a link like that on a website. You can then create a website for the musician, where people can listen to him, download tunes and donate.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,277, Reputation: 7690
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    #5

    Sep 29, 2008, 08:05 AM

    Part of the issue, is if YOU set it up, the money will be coming to you and you will be liable for the taxes on the money.

    So you need to get with this person, have them on their web site ( or set up a web site) and have them add a place to take money, to sell CD and more.

    My church has a similar thing where you can go and do donations or sometimes buy items online.
    Kathy Bonner's Avatar
    Kathy Bonner Posts: 4, Reputation: 1
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    #6

    Sep 29, 2008, 08:23 AM
    Quote Originally Posted by ScottGem View Post
    Contact Paypal. They can provide you with the code to setup a link like that on a website. You can then create a website for the musician, where people can listen to him, download tunes and donate.
    Thank you. You have been very helpful. 10/10
    Kathy Bonner's Avatar
    Kathy Bonner Posts: 4, Reputation: 1
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    #7

    Sep 29, 2008, 08:23 AM
    Comment on ScottGem's post
    Excellent. 10/10
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #8

    Sep 29, 2008, 08:33 AM
    Hello K:

    I suggest a different approach, and I think it will solve ALL the issues raised above.

    I agree with Scott. You'll NEVER get your struggling musician classified as a charity, so tax deducted donations are out. Now, fans could donate WITHOUT getting a tax deduction, but I don't think they would do that. And why should they? There are GREAT places to donate money where you GET a tax deduction.

    Your musician friend isn't going into this for his health. It's going to be his living. That means he wants to make MONEY. That's cool. It's the American and Canadian way. Should he become successful, those who supported him in the beginning should be paid BACK, and should SHARE in his good fortunes. IF there are no good fortunes, then that's the way it goes.

    Towards that end, start a business. Instead of soliciting DONATIONS, which nobody really wants to give, you can solicit PARTNERSHIPS, or MEMBERSHIPS, or OWNERSHIP (however your accountant sets it up), but it's ALL the same thing basically. Then if your musician friend makes money, everybody will get a share.

    You'll need CPA to get it set up correctly, but THAT'S the way to do it. Keep in mind, this is ONLY the structure. Once it's set up, you can do the web site as suggested. However, instead of buying pieces of HIM, visitors can download and PAY for his tunes. Isn't that the way it's done in the 21st century?

    I know it sounds complicated, but it isn't. Let the CPA do it all. That's why you hire him.

    excon

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