Fractured Atlas Has Found Me!

by:

Joe Patti

Fractured Atlas has my home address. I am not sure how they got it, but I have my suspicions. (I’m looking at you Western Arts Federation and Americans for the Arts.) The reason I know this is I received a small pamphlet in the mail this weekend letting me know about Fractured Atlas’ services to artists. My assumption is that this is part of Fractured Atlas’ effort to have a more nationwide reach. While they do have membership across the U.S., the vast majority of their members are on the East Coast, especially around New York City.

As I am wont to do when I see them offering something I like, I am encouraging people to check out their services. The pamphlet says their goal is to support artists, arts groups, arts administrators and other creative types “in the business aspects of your work–through access to insurance, funding, education, technology, and more.”

They have designed the pamphlet like one of those choose your own adventure books to direct you through a survey of their services. The first page directs you either to a page on fiscal sponsorship and insurance, two of the basic services Fractured Atlas has offered since they formed. Here is a look at the center pages of the pamphlet.

Click Image to Enlarge

Fractured Atlas has been demonstrating this sense of fun a fair bit lately. Take for example their espionage themed blog posts about two of their research fellows working on their open source arts administration software ATHENA. It’s a little strange, but a far more interesting read than posts discussing how they analyzed the current market needs and their methodology.

Wait a minute, maybe I am not taking their spy stories seriously enough! Maybe their research fellows are much better than I anticipated and that is who found out where I live! If I turn up missing in the near future, start the questioning with Adam “the Hutt” Huttler.

Info You Can Use: Microvolunteering

by:

Joe Patti

This information has been out since this summer and I have this sense of being vaguely aware of the company being mentioned in tweets, but there was no mention of its significance or I would have covered this at the time. I figured this was reason enough to mention it here and spread the word. (Or I was just living under a rock, but I couldn’t have been the only one.)

A company called The Extraordinaries has essentially shrunk Amazon’s Mechanical Turk service down to the cell phone level with a service called Sparked. I should clarify that this isn’t Amazon’s service offered through cell phones and the service rendered is voluntary rather than the paid work Amazon offers. The similarity is that it connects the needs of companies, in this case non-profits, with volunteers willing to do the work.

According to a piece on Springwise.com,

“…it enlists both individuals and groups of company employees to contribute their expertise to a nonprofit in even the smallest chunks of time. Nonprofits begin by posting requests to the site; those, in turn, are routed to would-be volunteers based on their skills and interests. Examples might include translating a page of a document into Spanish, for instance, or helping to choose a new logo; The Extraordinaries even has pre-built “kits” that turn a series of best practices into tasks for volunteers. Willing volunteers then complete the requests during a spare moment via iPhone (through a dedicated app) or web browser—or they can share it with their colleagues.”

Sparked uses the term micro-volunteering because the tasks are broken down into whatever segments of time you have available. You could conceivably perform tasks on the train commute into work or in a taxi on the way to a party. There are some examples of work that has been completed on their blog, including a recent story about a logo that one volunteer reworked.

I am probably not the first to say it, but given the way today’s digital culture is shaping interactions, I have to think this mode of activity mediated through technology is going to begin to figure largely in organizations’ volunteer programs. It doesn’t help with ushering and important face to face interactions, but it could help with promotional efforts, research, evaluation and maybe even editing program books and designing the covers.

Though I can see it now, people are so impressed with our organization when they attend a show, the decide to start microvolunteering on their iPhones during a performance leaving the staff in a quandary about asking them to stop.

Info You Can Use: More Foreign Artist Withholding

by:

Joe Patti

The issue of the 30% with holding the United States levies against foreign artists doesn’t seem to be going away. Last year I wrote about my victory, with some help from the IRS, in educating my disbursement office about reading tax treaties with other countries. I thought between this new found knowledge and preparing the paperwork well in advance of a performance, most of the problems would be behind us.

Boy was I wrong.

When I returned from the Christmas holidays about two weeks ago, I had a letter from the IRS specifically directing us to withhold 30% from the payment we were making to an artist and then send them proof of having done so. You would think from such a letter that the performers were absconding from the country with huge amounts of cash, but we really aren’t relatively paying them all that much. Especially when you consider their agent gets a cut too. I don’t want to imply that the laws should be applied inconsistently, but it seems like the IRS is either focusing undue attention on small potatoes or they have shifted resources to scrutinize all foreigner artists’ activities. (I still say they would get more bang for their buck going after everyone sheltering money overseas.)

This story has a happy ending, at least for my organization. We received a letter from the IRS today saying the group has entered into an agreement with the IRS and we were specifically directed by name not to withhold the money. Still, the whole incident shows that the IRS is apparently stepping up their activities in this area and you need to be more aware of the laws surrounding withholdings. Artists from Abroad is a good place to start.

Info You Can Use: B Corporations

by:

Joe Patti

Daniel Pink had a tweet today to a Washington Post story about Maryland companies signing up to be classified as a “B” corporation in that state. The B for Benefit Corporation will allow for-profit companies to operate to pursue social ideals.

You may ask what is to keep any company from operating in socially responsible ways? Many companies align themselves with causes to burnish their image, after all. It is actually the stockholders which may pose a problem apparently. According to the newspaper:

“These hybrid entities pay taxes and can have shareholders, without the risk of being sued for not maximizing profits. Companies can consider the needs of customers, workers, the community or environment and be well within their legal right.

A benefit corporation, for instance, could choose to buy from local vendors at a higher cost to reduce its carbon footprint, much as the Big Bad Woof does. The company, as a part of the incorporation, is required to file an annual report on contributions to the goals set forth in the charter and submit to an audit by an independent third party. “

This is different from the L3C structure I have mentioned before. Like the L3C, this structure is not recognized by the IRS. Though I am not sure if it is in the same nebulous area the L3C because it doesn’t seem like B companies are meant ever qualify as a program related investment for foundations. Though there is probably a lot about the structure not covered in the news article.

More information about B corporations may be found online at a site created to advance these type of organizations. I didn’t find any discussion about how the IRS views these organizations and if there are significant restrictions to investing. According to the site the need for a B corporation are: (my emphasis)

“B Corporations address two critical problems:

* Current corporate law makes it difficult for businesses to take employee, community, and environmental interests into consideration when making decisions; and
* The lack of transparent standards makes it difficult for all of us to tell the difference between a ‘good company’ and just good marketing.”

This is an effort they are trying to take nationwide so if you are interested, don’t think it isn’t applicable to you just because you don’t live in Maryland. This could be a viable structure for an arts related organization. While the status doesn’t provide any tax breaks, doing well on the required audit can be a positive signal to interested investors.