Fan films and 501(c)(3) status.

[Matthew Raymond]

In a separate thread, we started a conversation about the use of 501(c)(3) status in fan films:

As I recall, AP once said that he'd make Axanar a 501(c)(3), but to my knowledge he hasn't done that. Was this a good idea to start with? Was there another kind of 501(c) status he should have pursued instead? Trek Continues released some of their paperwork for the filing process. Would that have been a good starting point for filing? How can the Trek Continues organization be improved, especially in light of revelations about Vic? Given the outcome of the Axanar lawsuit, would they even have a chance of obtaining 501(c)(3) status? Are there moral or practical reasons that fan productions shouldn't obtain such status?

@Professor Zoom subsequently create a quick outline of 501(c)(3) status and made an interesting point about Trek Continues stretching the definition of "educational"...

501 c 3 status is for non-profits that have a mission, like education.

According to the IRS:

The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals

I think it's really pushing it to say a fan film falls into any of those category... MAYBE.... Yeah. Making films of something that you don't have any legal right to make doesn't fall into any of them. I think Continues is under "educational," maybe because it was educational for the cast and crew.... certainly not the viewer.

Personally, it's a lot of work, it's a lot of oversight for a fan film. It perhaps suited Continues because they basically turned it into an ongoing side business. But, now that CBS has the guidelines...

@mthompson1701 mentioned that the guidelines might render 501(c)(3) somewhat of a moot point...

If you really want to talk about 501c3 and the relationship between that and fan films, then by all means make a separate threat and I'll be glad to participate. I don't really think it's needed in light of the guidelines that are now in place.

...To which I mused...

There might be an issue of whether or not the tax on $50,000 actually justifies the expense of a lawyer to help you file. I'm actually a little more interested in discussing film production under 501(c)(3) in general as opposed to a specific fan film context, but I would understand if that doesn't interest you.

@Professor Zoom hinted that only a prolonged endeavor would justify such a status...

Unless you are going into a (non) profit business making films, I don’t see the point of becoming 501 c 3 in any context, fan film or other wise.

I added to that by pointing out that it "takes a village" to form such a non-profit corporation in the first place:

My understanding of 501(c)(3) is that you have to have a whole team put together with specific people occupying specific positions within the organization before you can realistically start to file for non-profit status. You have to write a complete set of bylaws and such. It's a long, involved process. So, you'd be better off waiting until you're fairly far along (end of pre-production?) before even considering it.

Questions remain:

1. Since AP has always stated that he intends to make multiple Axanar-related films, wouldn't this be a good fit for a 501(c)(3) corporation? Why hasn't he pursued this? (I feel like the answer is "grift".)
2. Are there other types of non-profit corporations that would be a better fit for making non-profit fan films?
3. Can the Trek Continues filing paperwork be used as an effective template for your own filing? How can you improve upon that previous filing?
4. Would the lawsuit settlement make it more difficult for Axanar Productions to file as a 501(c)(3) in the first place?
5. Are there specific reasons why one might object to the production of a fan film by a 501(c)(3) corporation?
6. Given the right circumstances, can a 501(c)(3) created to make a fan film qualify as "charitable", given that there seems to be some flexibility in the term?