California | Entertainment Law
8/31/06, 4:41 pm
Legal Question
Is a Fiscal Sponsorship subject to securities law?
Hi, and thank you in advance for your
time. Our film is being financed
through a Fiscal Sponsorship with a 501
(c)(3), which means that the
contributions are tax-deductible and
are not ''investments.'' However, if we
were to offer profit sharing as an
incentive to contribute to the film,
would that fall under securities law?
Can we draw up a private contract
between us and the contributors for
some form of profit return, even if we're
not ''selling shares'' in the film?
Thank you again for your help.
Best,
JR
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