"Creating Your Own Project" series - Fiscal Sponsorship

"How Philly Moves" photo shoot (Photo: JJ Tiziou

Freelancers are more likely to start their own projects than company dancers. While those with company contracts spend much of their time focusing their energy towards getting promoted, freelancers often have extra time to flex their creativity muscles. For many years, I have been focused on simulating the season of an annually contracted dancer through my freelance career. As I traveled the world from company to company, I watched many of my other freelancing friends create their own projects. Well, now that I've settled down in Philly for the past 3 months, I've had more time to develop my own ideas and see where they take me. In a handful of coming posts, I'll be sharing more about a project that I am creating. But for the time being, I'd like to discuss fiscal sponsorship, an important aspect of raising funds for your own projects. 

When I first started brainstorming ideas to give myself a platform to work more on my choreography, I knew that I would need to navigate the tricky technique of fundraising. I don't like asking people for financial support and have always had great pride in my ability to do things on my own. But when it comes to major arts projects, very few artists can execute their plans without a solid base of funding. Most people's first fundraising thought darts straight into the land of crowd-sourcing (like Kickstarter, Indiegogo, and Rockethub, which I will discuss in a future blog). While this method of fundraising can be a great supplemental tool, there are many more strategic and fruitful ways to fund a project. 

Initially, the people that are going to provide the base of funding for your work will be your friends and family, as well as people that have shown previous interest in you as an artist. But without the ability to offer tax-deductible donations, you are unlikely to field sponsorship beyond $100. Most people don't mind giving a small amount of money without much benefit for themselves other than the gratification of giving and seeing somebody else's passion project come to fruition. Anything over $100 will be difficult to field without a benefit for the donor. What is the best perk you can give somebody who wants to offer a substantial gift? A tax deduction.

How does a lone individual like me offer tax-deductible donations when I am my one single entity. I'm not prepared to start a non-profit organization or field a board for my very first try at self-producing my art. In all of my research over the past few months, I have found that there is a way that I can offer such benefits to anybody that is inspired enough by my work to help commission my process. I can do this through fiscal sponsorship.

Fiscal sponsorship is when a not-for-profit organization (often 501(c)3) offers a pathway for funds an individual raises to be filtered through their company back to the creator in order to help them offer tax-deductible benefits to donors, often for a fee of 5-10% of the donation amount. Essentially, donations are legally funneled through the organization to appear as if the company is receiving the gift.

Beyond the benefit of receiving tax credits on donations, fiscal sponsorship also allows an individual to apply for grants in a way that they couldn't have before. Again, using the umbrella of the sponsoring non-profit, one can reach out beyond seeking offerings for individuals and apply for grants that are only available to not-for-profit companies. Using fiscal sponsorship, you can open many more pathways to receive larger amounts of funding to make your project a reality.

How do you find an organization to fiscally sponsor you? I did a great deal of research on my path to funding my work. After checking out a handful of potential sponsors, I settled on New York Live Arts (often referred to as NYLA). In order to apply for sponsorship, I had to sign up as an Associate Artist ($100 fee). From there, I had to write a proposal. This included information about my project, its mission, a loose timeline, a budget, and how I planned on raising funds. Once I submitted all of this information, I had to travel to New York City for an in-person meeting to discuss specific details of my project. I was lucky enough that NYLA was happy to fiscally sponsor me with no further questions beyond my proposal.

While I set my sights on NYLA for sponsorship, there are many other organizations that help artists gain a non-profit-like status. Among those I researched were Fractured Atlas and The Field. These organizations regularly offer fiscal sponsorship to artists. Along my path, I also found that you can reach out to any non-profit organization and request that they allow funds to be allocated through their organization. If you have a relationship that could open up this door, be sure to have clear terms on how this set up will work in writing. Every organization will be different in the percentage of funds they keep for helping you out,  how long it takes for that money to be released, how you apply for grants, what type of grants you can apply for, and much more. Be sure that all of this is clear before you sign any contract. Also be aware that you will be responsible to pay taxes on the money that you raise. Keep tabs on your expenses to make sure that you deduct the expenses to minimize how much you have to pay back at the end of the year.

Fiscal sponsorship is a god-send to many self-creating artists like myself. It is very unlikely for most individuals to receive larger donations without offering something to funders beyond your final product. With fiscal sponsorship, you not only open up the possibilities of greater funding, you vastly expand your pool of grant applications. If you ever consider creating your own work; whether for one show, a tour, an installation series, or anything else that inspires you, definitely look into connecting with a respectable non-profit organization that will allow your funds to be stream-lined through their system.

How to find and obtain health insurance

In the dorms at the School of American Ballet, attempting to do a breathing treatment for my asthma. My suitemates, Jermel Johnson (now Principal Pennsylvania Ballet) and Andrew Scordato (now Corps New York City Ballet), decided to have some fun while I used my nebulizer.

When I first decided that I was going to create this blog, I made a list of more than 30 topics that I felt were important to touch upon. Of course, I have added more to that list over time. But from the start, I knew that I needed to write a blog about obtaining health insurance as a freelance dancer. I've put it off and put it off again, but for good reason. How could I write a blog about searching for health insurance if I had never done a search myself? Well, dear followers, the search is over. I applied for my own health insurance plan earlier this week and now that I have gained credibility in writing this post through experience, I am prepared to share what I have learned through the process.

Being diagnosed at the age of 4 with severe asthma really taught me the importance of having health insurance. I visited the hospital at least 5 times per year until I was about 17 years old for asthma related problems. When I left PNB, I felt extremely fortunate that I was offered 18 months of continuing health coverage as a part of a federally regulated program called COBRA. I was moving across the country the day after my duties had ended with PNB, working with a new company, commuting over an hour each way from the suburbs, and searching for a new place to live in a city that wasn't very familiar. I hardly had time to figure out how to obtain health coverage.

COBRA was a godsend. I still had coverage to pay for that earwax blockage that prevented me from hearing out of my left ear for five days only three weeks after moving (ewww...gross), which surprisingly screwed up my ability to balance while dancing. I struggled to pay the $521.70/month tab, but felt that I was very lucky to still have the option to take care of myself. COBRA only lasts for 18 months after you cease working for a company. As I approached month 16, I had to begin seriously looking for coverage that was affordable, allowed me to take care of my asthma and medications, and offered options for physical maintenance while avoiding completely breaking the bank. Now that I have figured things out, I am still kicking myself that I could have been saving hundreds (and I mean hundreds) of dollars a month.

Before one starts looking for an affordable health plan, they should first determine their needs. For me, I am asthmatic and require certain medications that need to be refilled nearly every month. I also want to feel that if I am ill, that I can go straight to a doctor. I don't want to question whether I should see a doctor. If I have to pay a great deal out of pocket, chances are that I will keep putting off an appointment until I am way to sick to work. Being a dancer, I also feel it is important to have an option for physical maintenance to keep my body in the best condition that I can. So, for me, an ideal plan has affordable prescription coverage, low co-pay with no/low deductibles, and "specialist" coverage for PT and chiropractic care. I also travel a lot, so it would be impractical for me to get an HMO plan, where you have to choose one main doctor that gives you referrals for anybody outside their services (these plans are usually cheaper). I need a PPO plan that allows me to go to any provider that accepts a specific health insurance company's plan (read here for more information about HMO vs PPO).

Where does one begin their search for health insurance? My partner (life partner) owns an organizing business (Shameless plug) and has become "Philadelphia's next top networker." In his many ventures to make friends, obtain clients, and learn what people in Philly are all about, he met an insurance broker. Since my partner doesn't have any health insurance at the moment, the broker told him he could help him out. My partner mentioned that I would soon need to find new coverage and the broker offered me some great advice. If you have recently left a company and are on COBRA and you like your current health plan, call your current provider. PNB offered insurance through Regence, which is a subsidiary of Blue Cross Blue Shield. BCBS is one of the largest providers in the country. Using this network, with the right plan, I have had easy access to most providers, even though I live across the country. This is extremely important for freelancers who spend a large amount of time away from their home-base. All one has to do is call the customer service number on their insurance card and ask to talk to a representative about switching over to an individual plan. A dancer could easily do this before expensive COBRA payments kick in. Just make sure that you don't have a lapse of coverage for more than 63 days. Law states that an insured person can not be denied health coverage if they have had coverage less than 63 days before applying (read here). This method of seeking insurance is the quickest way to gain and continue coverage.

What are you supposed to do if you have had a lapse of 63 days without coverage, are leaving your parent's insurance plan, or have never had your own insurance coverage? The first thing you can do is call major national providers like BCBS, Aetna, or any others on this list. This is going to require a lot of time, patience sitting on the phone, and self-comparing. If you do have access to an insurance broker, like I did, you may want to give them a call and get advice from them. Don't be afraid if you don't have access to a broker. There are many websites that act like insurance brokers. One site I found particularly useful was Ehealthinsurance. Beyond that, one can use finder.healthcare.gov, healthinsurance.org, or any of the useful sites that are listed in this great article about finding your own insurance. Be aware that coverage can change according to your state, age, and other conditional items. If you don't get your health insurance through one of these websites, you can at least use them as a tool to get a general comparison of rates.

If you feel that you need some advice or assistance in looking for the right insurance plan, among other things, there are three great resources that EVERY freelancer should know about. Fractured Atlas is an organization that helps support and service artists of all types, from organizations to freelance dancers. If you look around this website, you can find information that can help you find health insurance. One can also join the Freelancer's Union. This union is free to join and their mission is to "connect freelancers to group-rate benefits, resources, community, and political action to improve their lives – and their bottom lines." Lastly, a dancer that has already spent some time as a professional can contact Career Transitions for Dancers for advice on insurance and beyond. I am sure there are many more resources out there that I have missed. If any of my readers have more to share, please feel free to leave a comment with that information below.

In the end, I ended up going with the carrier that I had through my COBRA with PNB. I was able to switch my company plan to an individual plan that is comparable to my previous coverage and I will be saving nearly $300 a month to boot. If you want to see what my plan looks like  click here and find the PPO 30 Copay plan. My co-pays are generally low, there is no deductible in-network, and I can see a physical therapist or chiropractor if necessary. Even though it was a lot of work to figure all of this out, I am glad that I can continue protecting my body and my wallet. As dancers, it is important that we do everything that we can to maintain our instrument. Every dancer should have some form of health insurance. According to this 2006 article in the L.A. Times, "Classical ballet companies, weighing injury totals against the number of dancers who perform each year, report a 67% to 95% annual injury rate." If a dancer is on their own, they need to have an option to take care of themselves if, and when, injury occurs.