Mission statements need an audience and methodology.
Classifying your theater as a nonprofit organization qualifies it for various grants, may exempt it from taxes and allows donors to make tax deductible contributions. When starting a nonprofit theater, you must first make some decisions regarding the theater company, its purpose and how it will run.
Instructions
Starting Your Theater Company
1. Write down your ideas for your theater’s collaborative structure. Outline the line of responsibility and who will make key decisions. Study similar community theaters’ bylaws as a starting point.
2. Create a mission statement. This is a declaration of what your company aims to accomplish. Mission statements should be very broad, and it is important that they illustrate the company’s tailored goals and vision. Decide on a name for your company that reflects your mission statement. You will also need a company logo.
3. Open a business bank account under your company’s name and register the business locally. Bank accounts are generally free, and this will allow you to keep track of finances and accept checks made out to the theater company. Registering the business locally allows you and your administrative members to act on behalf of the company. Register with your local business bureau.
4. Join local, regional and national theater organizations (especially community theater organizations). They will provide support, resources, networking and often, publicity for your troupe. You can find these at the website Upstagereview.org.
5. Create a contact database for patrons and collaborators. When it comes time to publicize a production, mailings are an excellent tool.
6. Decide what activities your theater will participate in between productions. Decide if you will host stage readings or offer classes and workshops. These are important factors that help the company remain visible and active between productions.
Getting Nonprofit Status
7. Contact the IRS office or check online for the necessary forms for nonprofit incorporation. You will need to decide what kind of entity classification your company will use. The most common is 501(c)(3). This status is tax exempt, and individuals can write off donations to your organizations on their taxes. In order to get this status, your company must be a formal organization. One common type of formal organization, for example, is a nonprofit corporation, which allows the company to hire people and protects officers from being personally responsible for decisions made for the organization. To do this, you will need to create articles of incorporation and bylaws.
8. Create Articles of Incorporation. These will need to include the names, addresses and individuals responsible for your company. Include the methods through which the articles can be changed. Double-check your articles against the IRS requirements. There is often specific language that needs to be included.
9. Create your theater company’s bylaws. Include general information (the company’s name and bookkeeping policies, legal counsel and corporate status), details for office powers, responsibilities, board member terms and replacement procedures, definition of your company’s members, their duties, dues, obligations, powers and privileges, meeting information (annual, regular, special meetings, quorum information and any time and place requirements), and information on any committees including members, meetings, quorum, appointments, duties, powers and membership change.
