Posts Tagged ‘Non-Profits’

What Are Contracts for?; Non-Profit By-Laws Made Simple; Are Union Strikes Force Majeure events?; Artist Visa Updates

Wednesday, June 7th, 2023

LAW & DISORDER

Performing Arts Division

June 7, 2023 

INSIDE THIS ISSUE:

• What Are Contracts For? 

• Non-Profit Laws Made Simple 

• Are Union Strikes Force Majeure Events? 

• Artist Visa Updates

 

Legal Issue of the Month:

What Are Contracts For??? 

It’s no secret that a vast expanses of artists, venues, managers, presenters, and agents prefer to have engagement contracts with all the “fun stuff” (dates, fees, travel, repertoire, etc) confirmed and signed on the front and the “terms and conditions” left alone, shunned, cold, abandoned, and forsaken on the back. Such “terms and conditions” are often dismissed as “just all the legal stuff” or “the legalese” or “stuff we had a lawyer draft for us years ago and we have no idea what it means, but we can’t change it.”

First, whether it’s the time of the sound check, 4 bags of raspberry Haribo gummy bears the Artist wants in the dressing room, or the number of comp ticket, everything put in a contract becomes “legal stuff.” Second, though, indeed, boring (even for me), the “legalese” typically addresses important issues such as whether or not the venue can make an archival recording and what they can do with it, rights and licenses, cancellation terms and conditions, who’s responsible if someone gets injured, what constitutes force majeure/Acts of God (remember how everyone suddenly started reading those for the first time during COVID?), and other issues that everyone ignores until something goes horribly wrong, at which point they all start arguing over what they assumed these terms meant.
A contract in and of itself will not protect you. Contracts are not self-enforcing. There is no scenario in which a signed paper talisman with the right magic words will allow you to sleep embraced in the amble bosom of self-delusion that everyone will do what they are supposed to do, people will not act in their own self-interest and still claim the moral high-ground, and nothing can go wrong. Signatures do not guarantee that dates will not get cancelled even if the contract specifically says it is non-cancellable or even that you will get the fee everyone agreed upon.
If a date gets cancelled or you do not get paid, your signed contract merely becomes a coupon redeemable for a lawsuit to enforce it. However, are you really going to sue anyone? Is there such a significant amount of money at stake that it’s worth the cost and time, financially as well as emotionally? Are you willing to subsidize a trial lawyer’s $11,000 Japanese NEOREST toilet just for the self-satisfaction of proving a point? Do you ever want to work with that venue or artist again?
So why bother? What are contracts for?
Contracts are for managing expectations, both your own and the other party’s, by spelling out ALL of your concerns and requirements (not just the “fun stuff”) before music is composed, airline tickets are purchased, or recordings made. Contracts are for discovering and discussing unexpressed assumptions. Contracts are for planning and assessment. Contracts are for reading and discussion. Contracts are for knowing what the other party is and is not willing or able to do, and then deciding whether you can compromise or whether you are willing to proceed and accept the risks. Contracts are for starting a conversation and ending in a relationship.
If you’re just tossing unread papers back and forth through Docusign so you or your contract administrator can tick that box off the list, don’t complain when the artist trashes the dressing room and refuses to perform upon failing to find their gummy bears. 

Dear Law and Disorder:

Actual questions we get asked and the answers people actually don’t want

“Non-Profit By-Laws Made Simple” 

Dear Law & Disorder:
We are forming a non-profit. Can you recommend a good template for by-laws? We just want to keep it simple so we can get it set up right away and get started. We’ve already got some people willing to donate as well as serve on our board.
Aside from an outhouse erected on a popsicle stick over a tidal bore, non-profit institutions are, perhaps, the most precarious and dysfunctional of all structures ever conceived within which to conduct business. Without a strong set of by-laws, carefully and thoughtfully crafted to address your unique mission, stakeholders, goals, and challenges, your non-profit is likely to perish from such commonly fatal non-profit diseases as Foundersitis, Administrative Staff Infection, Systemic Committee Infarction, Micromanageitis, Consultant Dependency, Strategic Streptococcus, and Gangrenous Board Members.
Your by-laws are the foundation upon which your organization will be built. They determine how your non-profit is structured and managed. They will describe the roles, expectations, duties, and responsibilities of board members. It will set forth how decisions are made and conflicts resolved. At the same time, like strategic plans and business plans, by-laws are not commandments fixed in stone. They will provide a steady hand of direction within a flexible mechanism for addressing growth, challenges, and situations as they arise. In other words, whilst by-laws do not require a constitutional convention, they are also not something to be crafted with speed and indifference.
Assuming you are serious about forming a sustainable business and not merely hoping to circumvent having a viable business plan by hoping to supplement your income through a quick influx of donations and grants, you should gather as many different samples of by-laws from as many different organizations that have similar missions as yours. Analyse them to see how the successes, failures, and experiences of other organizations may apply to your own. Remember, when forming a non-profit, it is the board members who will ultimately control and run the organization, not you. So, just because someone wants to donate money does not mean they should also serve on the board. Ideally, those persons who are already willing to serve as your initial, founding board members should also be interested and committed enough to assist you in the process of crafting the by-laws.
Whether you are forming a Children’s Vuvuzela Choir or the Wilma Schiddy Centre for the Arts, simplicity kills the soul—or, in this case, a non-profit. 

 

Breaking the News!

Are Union Strikes Force Majeure Events? 

When concerts and performances started falling during COVID, it sent everyone into a delirium over whether, how, when, why, if a pandemic constituted a Force Majeure event allowing an engagement contract to be cancelled without penalty. As no one was happy with answers, everyone began re-drafting their contracts to deal with future pandemics.

Hollywood’s current Writers Guild of America strike has spotlighted yet another hidden Act of God: labour strikes. Many “standard terms and conditions” give a party the right to cancel a contract in the event of a labour strike. This means that if you are engaged to perform as a soloist with an orchestra and the orchestra goes on strike, the orchestra can terminate your engagement contract without penalty. This can apply to any situation where a union strike might impact the resources needed to fulfil a contract—such as booking an event at a university-based venue and the teacher’s union goes on strike or being booked to perform and your sets and props cannot be delivered due to a trucker’s strike. Imagine my own surprise when, as a person whose wife had to show him how to change the windshield wiper fluid in my car, I woke up one day as a member of an adjunct faculty and also found myself a member of United Auto Workers…which then went on strike!

You can read more about this issue HERE

 

Artist Visa News & Nausea 

• The Status of Proposed Petition Fee Increases.
There have been no new updates from USCIS regarding its proposed fee increases and other changes. Whilst our crystal ball remains cloudy, the runes tell us to expect “some” changes, we just don’t know when or to what degree. In the meantime, all fees remain the same and there remain no limits to the number of beneficiaries that can be listed on O-2 or P petitions.
• COVID Vaccinations Are No Longer Required To Enter The US
Effective May 12, 2023, the Biden administration lifted the requirement that non-US citizens and non-US residents have COVID vaccinations to enter the US. However, ye who enter here will continue to be required to abandon all hopes.
• No More Passport Entry Stamps
Also this month, US Customs and Border Patrol (CBP) confirmed that it will be implementing “stamp-less entries” for everyone arriving in the US. This means that when you enter the US on a visa, you will no longer receive a physical stamp and handwritten notation in your passport. Instead, your date of entry, your visa status, and the date by which you must leave will hereinafter ONLY be recorded on a digital entry/exit form called an I-94 which will ONLY be available on-line at the CBP I-94 Website .
Whilst CBP has been recording entry/exit information on digital I-94 forms for several years now, CBP officers continued to stamp passports. As it was not at all uncommon for the information on the I-94 to be incorrect, having a physical stamp meant that before you left the airport you could check and confirm that all of your information was correct. Now, for example, if you have a visa that expires on June 30, but the I-94 says May 30, you will need to leave by May 30 regardless—but you won’t know that a mistake has been made in your record unless you dash to the I-94 website as soon as you leave the immigration area and make sure your I-94 is correct. If it is not, you will need to find the CBP officer lurking betwixt the Cinnabon and Chick-Fil-A and ask them to correct it.
• There Is Nothing Graceful About US Visas  
…and speaking of entries and exits, please note that there are no automatic “grace periods”—10 days or otherwise—added before or after the validity dates of a visa. There never have been. This has always been a myth—or, at least, mischaracterized. When an individual enters the US, CBP officers have the discretion to allow them up to 10 extra days to remain in the US as a tourist. However, it is the burden of the visa holder to make the request to a CBP officer upon entry to the US. The extra dates are not automatically given.
If the officer approves (and they usually do), the approved extra days MUST be reflected on the I-94. So, if you want to claim the 10 extra days: (1) You must request the extra time; (2) the CBP officer must approve the request; and (3) the additional days must be reflected on your I-94 entry/exit form. However, as discussed above, as entry/exit information will henceforth only be recorded digitally, you will need to check the I-94 website before you leave the airport to make sure the extra days are reflected on the I-94. Otherwise, even if the officer verbally approved the extra days, you will be required to leave the US by whatever date is listed on the I-94.
The better practice is that if you know you or your artist plan to hang around after your show to attend the Toadlick County Monster Truck Mash-Up and Watermelon Bake-Off, just add those extra days onto the visa petition so your visa will be valid for the full time you want to be in the US. You can always still ask for the extra days on top of that to get even more extra time.
• Current USCIS Service Centre Processing Times:
Vermont Service Centre:      Standard processing: 6 – 8 weeks
                                              Premium processing: 9 – 10 days      
California Service Centre:    Standard Processing 3 – 4 months
                                              Premium Processing 13 – 14 days

 

 

Deep Thoughts

“Try not to focus too much energy on whether you can trust someone else. When a bird lands on a branch, it doesn’t trust that the branch will never break. It trusts its ability to fly away if it does.”

Anonymous

 

 

 

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Let us know what you’d like to hear more about.
Send us an email, post on Facebook, mail us a letter, dispatch a messenger, raise a smoke signal, reach out telepathically, or use whatever method works for you.

GG Arts Law provides a comprehensive range of legal services and strategic support for the performing arts, including: Artist Visas, Taxes, and Touring; Rights & Licensing; Negotiations & Representation; Contracts; Business & Non-Profit Organization & Management; Project Management; and Strategic Consulting & Planning.

 

OFFICIAL LEGALESE:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a threatening email, filing a lawsuit, or basically doing anything that may in any way rely upon an assumption that we know what we are talking about or one size fits all!

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Posted in Acts of God, Contracts, Law and Disorder: Performing Arts Division, Non-Profits, Uncategorized, Unions, Visas | Comments Closed

Who’s Responsible For Performance Licenses?

Wednesday, June 26th, 2013

By Brian Taylor Goldstein, Esq. Dear Law and Disorder: In all of my artist’s booking contracts, the presenters are required to obtain ASCAP, BMI and SESAC licenses. I recently received a contract back from a venue in which they crossed out that language. They told me that their policy is not to get these licenses and that the artist is responsible for obtaining them. It was my understanding that it was always the venue’s or presenter’s responsibility to obtain the performance licenses from ASCAP, BMI, and SESAC. Am I wrong? You’re not wrong, but you’re not entirely correct either. The truth is that it is the legal responsibility of all parties to make sure that the proper licenses have been obtained for a performance. Which party actually obtains them and who bears the costs is a matter for negotiation. Whether it’s a festival, a school, a nightclub, or a large performing arts center, non-profit or for-profit, it’s the legal responsibility of the owner/operator of a performance space/venue to ensure that the necessary rights and licenses have been obtained with respect to all copyrighted music which is performed at that venue. (Actually, this legal responsibility is not limited to performance rights, but extends to dramatic rights, synchronization rights, broadcast rights, and all other required rights and licenses which pertain to music, images, trademarks, recordings, images, or other protected rights or materials which are used as part of the performance.) However, it’s equally the legal responsibility of the artist, and in some cases, the producer and promoter, to ensure that they have all of the required rights and licenses, including performance licenses from ASCAP, BMI and SESAC. Why? Because if an unlicensed song is performed at a venue, then the US Copyright Act allows all the parties involved in the performance—the artist as well as the venue/presenter, the producer, the promoter, and anyone else involved in the performance—to be sued by the publisher or copyright owner. Stealing a song is like robbing a bank: the entire gang is arrested; regardless of who broke open the safe, who drove the get away car, or who simply served as look out, they all participated in the robbery. I am familiar with many venues which do not want to be burdened with the perceived cost and difficulty of obtaining performance licenses (which, depending upon the specific circumstances, may be neither costly nor particularly difficult), refuse to do so, and insist on the artist obtaining the licenses. However, in my opinion, for reasons I have written about in earlier blogs, this is a foolish policy. In practice, it’s simple easier for venues and presenters to obtain ASCAP, BMI and SESAC licenses than the artist. The venue can purchase a blanket license from each organization that permits all of the music in their catalogs to be performed by any artist at the venue during the license period. These licenses can cover an entire year or just a specific festival or event, and are priced based on numerous factors, including number of performances, ticket prices, size of the venue, etc. With the blanket licenses in place, the artist simply needs to show up. If a venue or presenter prefers not to obtain such licenses, then the artist or performer can certainly do so themselves. However, if no one obtains the licenses, then everyone is liable. Quite simply, whether the venue/presenter requires the artist to obtain the performance licenses or the artist insists that the venue/presenter obtains the performance licenses, passing the responsibility on to another party will not relieve either party from ultimate responsibility if the other party fails to do so. In other words, there is no contract, release, or any other document which will protect you from liability should the necessary licenses not be obtained. This is why, among other reasons, if I operated a venue, I would much rather rely on myself to obtain the licenses than depend upon another party to do so. In your case, if the venue refuses to obtain the ASCAP, BMI or SESAC licenses, then you and your artist have two options: either the artist agrees to obtain the licenses or the artist refuses to perform. Electing to proceed under the expectation that no one will get caught or the publishers and copyright owners will not sue small artists or struggling non-profits is not an option; that’s the same as robbing a bank and hoping the police won’t find you. Not to mention, in an industry where so many purport to operate under the noble purpose of promoting the value of art and artists, I can’t imagine the rationalization of stealing it for any purpose, regardless of how noble. _________________________________________________________________ “Law and Disorder: Performing Arts Division” will be taking a break between July 1 – July 14. Our next post will be on July 17. _________________________________________________________________ For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com To ask your own question, write to lawanddisorder@musicalamerica.org. All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously. __________________________________________________________________ THE OFFICIAL DISCLAIMER: THIS IS NOT LEGAL ADVICE! The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

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Posted in Agents, Artist Management, Arts Management, Contracts, Copyrights, Law and Disorder: Performing Arts Division, Liability, Licensing, Music Rights, Non-Profits, Presenters, Publishing, Venues | Comments Closed

Does God Serve On Their Board?

Wednesday, March 20th, 2013

By Brian Taylor Goldstein, Esq.

Dear Law and Disorder:

We booked one of our artists to perform at a non-profit venue. The booking agreement was signed by all parties. We just received a phone call from the venue that their board met last night and decided unanimously to cancel the engagement due to poor ticket sales. The contract states that our artist is to be paid a cancellation fee if the date is cancelled for any reason except an act of God. However, the venue is claiming that this is an act of god and they do not have to pay. Any suggestions?

While I am familiar with many board chairs and presidents who erroneously believe they rule with omnipotent powers, their decisions do not constitute “Acts of God.” Moreover, unless there is a specific definition of “Acts of God” in a booking contract that expressly states that ticket sales are subject to divine will and authority or that a recognized deity from an established pantheon is in charge of marketing and sales, poor ticket sales are also not “Acts of God.”

Contrary to myth, non-profits are not exempt from the laws and legal obligations which govern all businesses, for-profit or otherwise. They must license copyrighted materials, pay their employees and independent contractors, and honor contractual obligations just like everyone else. In this case, you would appear to have a fairly straightforward breach of contract situation whereby the venue is contractually obligated to pay your artist the agreed upon cancellation fee.

Regardless of the legal merits of your claim, your first course of action should not be threats or demands. Instead, explore every possibility of a creative and mutually reasonable solution. Non-profits are under a considerable amount of pressure and, more often than not, in situations such as these, they are acting out of fear and self-survival rather than any nefarious intent. Can you reschedule the date? Can you offer to provide additional marketing materials or suggestions? Are there any expenses or costs which can be reduced? Are there any other presenters in the area who might be willing to partner with the venue and share expenses? Assuming your venue is unwilling to budge or consider alternatives, then stating the legal merits of the situation and suggesting mediation or arbitration would certainly be appropriate.

Ultimately, this may be one of those rare instances when filing legal action may be warranted. If your booking agreement does not provide for attorneys fees and costs in the event of a lawsuit, and if the engagement fee is not substantial enough to warrant the time and aggravation, you may be able to file a small claims action in lieu of a more formal trial. Sometimes, merely filing a lawsuit or claim is enough to bring them to the bargaining table. However, always remember that winning a lawsuit doesn’t mean you or your artist will ever see a dime. If the venue refuses to pay, you’ll have to pursue them further with bank liens and property attachments until they either pay or file bankruptcy or close entirely. While not resulting in any damages for you or your artist, this can often be its own form of divine retribution upon the venue.

__________________________________________________________________

For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

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Posted in Acts of God, Agents, Artist Management, Arts Management, Contracts, Law and Disorder: Performing Arts Division, Liability, Non-Profits, Presenters, Venues | Comments Closed

Ask, and Ye “May” Receive…or Not

Wednesday, January 9th, 2013

By Brian Taylor Goldstein, Esq.

Dear Law and Disorder,

I am a music professor at a medium-sized state college. We have two questions with regard to live streaming some of our concerts and recitals. We, of course, have paid the ASCAP and BMI licenses/fees to cover the rights for live performances. I believe the licensing agencies base the amount of the fee on the size of the school, and we pay a flat amount each year. Does paying those licenses for live performances also cover streaming the concert live? Our department chair believes this to be the case.

The other issue involves archiving the recordings of the concerts, or leaving them on the website for a time after the concert so patrons (e.g., parents of students or any other interested parties) can view the concert at a later date if they had a conflict the day of the original concert and were unable to watch it live. Would this practice also be covered by the licenses or fees we’ve already paid? Is this a grey area in which the law has not yet caught up with the technology, or would this practice be a violation of copyright?

I know of other schools whose music departments are streaming performances. Any clarification you could give on this subject would be most helpful not only to us but to many schools throughout the country.

Some ASCAP/BMI licenses for live performances also cover the right to stream the concert live. However, as with all rights, you only get what you ask and/or pay for. So, if you paid for the right to stream live concerts, then your license covers that. If you only paid for live concerts, then it does not. You need to check the license terms and agreement you received from ASCAP/BMI.

With regard to the issue of “archiving the recordings of the concerts”, the good news is that it is not a grey area at all. The bad news is that it is not a grey area at all. ASCAP/BMI licenses only cover live performances and, in some instances, streaming a live performance. However, making an audio/visual recording of a concert to be seen or heard at a later a date or…gasp…placed on a website for the whole world to access, is quite another. Such rights are called “synchronization rights” and they must be arranged separately. When you purchase the right to perform music at a live concert, there is no “inherent right” to make an archival recording or a recording for “non-commercial” purposes. There is no “inherent right” to make a recording of any performance at any time under any circumstances without the permission of (a) the composer/publisher of the music (assuming the composition is not in the public domain) and (b) the performers themselves.

As opposed to the law not catching up with technology, this is more of an issue where the performing arts industry has not caught up with the law. I, too, know of many schools and non-profits that regularly make archival recordings and stream concerts. While some of these are licensed, many are not. There is a common misperception that, so long as something is used for educational purposes or no money is charged, then no licenses or permission is required. Nothing could be further from the truth. While many composers and publishers are happy to grant liberal permission, or even turn a blind eye to unauthorized used, others are not. It’s anyone’s guess as to which one you’re dealing with until it’s too late. The safest rule of thumb is: never assume you have permission to do anything you haven’t specifically asked for. Always ask permission. It protects artists, protects your institution, and perpetuates the value of the arts.

________________________________________________________________

Both Robyn Guilliams and Brian Taylor Goldstein will be attending the Association of Performing Arts Presenters Annual Conference in New York, providing both workshops and consultations. Please stop by the 4th Floor of the Hilton and say hello!

_________________________________________________________________

For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

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Posted in Arts Management, Copyrights, Law and Disorder: Performing Arts Division, Licensing, Music Rights, Non-Profits, Presenters, Publishing, Recordings | Comments Closed

They Can’t Do That To Me!

Tuesday, October 9th, 2012

By Brian Taylor Goldstein

I just got a notice that a venue where I booked one of my artists is closing. I have a written engagement contract that was signed by the venue over a year ago. The notice I received says that they have run out of money and are cancelling their season. Can they do that? Do I have a valid claim? Should I file a lawsuit? Can I alert the media? How do I send a message to other venues not to do this?

Assuming you have a valid, enforceable contract with no cancellation clause or other termination provision, then the venue had no legal right to cancel regardless of their financial situation and the venue is in breach of the engagement contract. The question is whether or not your claim is worth pursuing…or, assuming that you were acting as an agent on behalf of your artists, whether or not your artists have a claim worth pursuing.

The first course of action would be to send the venue a letter notifying it that it is in breach and will be liable for damages if you are unable to re-book the date. Then, you must make every effort to re-book the date and minimize (aka “mitigate”) damages. As a matter of contract law, your artists are not automatically entitled to the full engagement fee. Rather, if you were to re-book the date for a smaller engagement fee, your artists would be entitled to the difference. If you were to re-book the date and obtain a higher fee, your artists would not be entitled to any damages at all. Even if you are unable to re-book the date, you must be able to show that you made every effort to do so and made every effort to minimize any other losses or out-of-pocket expenses. (ie: Can you cancel or get a refund for any travel expenses? Are they any production or crew costs you can avoid if the engagement is cancelled?)

To enforce your claim, you would need to file a lawsuit. Depending upon the terms of your contract, you may be able to file the suit where you are located or where the venue is located. However, any judgment outside of the state where the venue is located would be unenforceable unless you took the judgment into a court in the venue’s state and had it recognized by that state. Regardless, getting a judgment does not mean that you will get any money. It just means you are legally entitled to money. With the judgment in hand, you would still need to “collect.” Collection would involve more court proceedings in order to levy bank accounts and attach assets. All of this would need to be done in the state where the assets are located. Also, unless your contract provides for court costs and attorneys fees, those would not be recoverable. Ultimately, whether or not you want to file a lawsuit depends on the amount of your damages and whether the time and costs of pursing the claim outweigh the likelihood of collection. Unless the venue actually owned its own performance space or has other assets to draw from, it can be near impossible to see any actual money. If the venue has no assets or files for bankruptcy, then you would get nothing…or next to nothing.

Your more immediate and practical course of action, aside from making every effort to re-book the date and mitigate damages, may be to notify the venue of your claim and then wait. The statue of limitations for a written contract varies from state-to-state, but, in most instances, you will have from 3 to 6 years to file a lawsuit. If the venue is able to re-organize and re-open before the statute-of-limitations runs out, you could revisit the matter and, if they refuse to pay or otherwise agree to a reasonable settlement, still file your lawsuit. On the other hand, if the non-profit ultimately closes, and it turns out that there are assets to distribute, they will need to seek a court approval of the distribution. You can file a creditor claim and stand in line with their other creditors at that time.

This is may also be a good opportunity to review your engagement contract. As you can see, a lot of your options in these situations depend on the enforcement tools you give yourself in your contract. Do you require non-refundable or forfeitable deposits? Are there specific liability provisions? Interest? Attorneys fees?

As for alerting the media, I realize the venue’s actions appear outrageous, unprofessional, and unethical. Nonetheless, without knowing more about the specific circumstances of this particular venue and what has led to their decision to cancel, “going public” could easily backfire on you as well as your artists. Resist the urge to go on a crusade. They are rarely successful and everyone dies. As for sending a warning to other venues, I seriously doubt most non-profits need to be reminded that contractual breaches, lawsuits, and dissolution of assets are not effective strategic plans.

__________________________________________________________________

For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

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Posted in Agents, Artist Management, Arts Management, Contracts, Law and Disorder: Performing Arts Division, Liability, Non-Profits, Presenters, Venues | Comments Closed

Non-Profit and Tax-exempt: What’s In a Name?

Wednesday, August 29th, 2012

By Robyn Guilliams

What is the difference between a “non-profit” organization and a “tax-exempt” organization?  I hear these terms used interchangeably – do they mean the same thing?

Great question!  These terms do not mean the same thing.  All tax-exempt organizations are non-profits; however, not all non-profits are tax exempt.

When an organization wishes to be classified as “non-profit”, it must register with a state – usually the state in which it operates.  Every state has different classifications for non-profit organizations.  For instance, New York and some other states have a type of business classified as a “Not-For-Profit Corporation.”  Other states have corporations that are classified as “Non Stock Corporations.”  What all of these corporations have in common is that they do not have any owner, and the business of the organization is run by a board of directors.

Once an organization formally registers as a non-profit company with the state, the organization can request federal tax-exempt status with the Internal Revenue Service.  If granted tax-exempt status by the IRS, an organization will not have to pay federal taxes on its income (provided that income is related to the organization’s “charitable mission”), and donations made to the organization generally will be tax deductible for the donor.

States often have additional requirements for organizations to qualify for tax-exempt status.  Some states will grant tax-exempt status automatically to organizations that have been granted federal tax-exempt status, while others require the organization to complete a separate request.

Some businesses elect to become non-profits without also being tax exempt. They do so for many strategic, marketing, and organizational reasons. However, the important take-away here is that not all non-profits are tax exempt. A tax exempt non-profit is subject to far greater government oversight and operational restrictions than a regular non-profit. Unless a non-profit organization is granted tax exempt status by the IRS, that organization is subject to the same tax and filing obligations as any other business!

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For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

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Posted in Arts Management, For Profits, Law and Disorder: Performing Arts Division, Non-Profits, Presenters, Taxes, Venues | Comments Closed

Is A Choral Group Required To Have Workman’s Compensation?

Wednesday, June 20th, 2012

By Brian Taylor Goldstein

Dear Law & Disorder:

We have a non-profit choral group. Our of local public television stations has sent us a contract to record and broadcast one of our concerts this December and they have an item that requires us to have workman’s comp on our entire group. We currently only have 3 staff employees (all part-time) and the performers themselves are not employees. As a non-profit, are we required by law to carry workman’s comp on members of our group?  We are wondering if we can sign this agreement if we don’t carry workman’s comp insurance.

First, and foremost, your non-profit status is unrelated to the issue of workers compensation. Non-profits are subject to the all the same laws, statutes, and regulations as all other businesses. Whether or not you are required to carry workers compensation depends on whether your staff and chorus members are considered independent contractors or employees. This requires an analysis of both federal law as well as the laws of your state. However, in this particular case, such an analysis may be irrelevant.

If you were to enter into a contract with the television station in which you are required to have workers compensation, then you would be agreeing to provide workers compensation whether you are legally required to do so or not. That’s really the whole point of a contract: two parties are agreeing to do things for each other they would not normally be required to do. So, regardless of what the law does or does not require, you cannot just sign the television agreement unless you plan to comply with their requirement. Otherwise, if you signed such a contract and then failed to obtain the workers compensation insurance, you would be in breach.

I suspect that, like many institutions, the television station is using form contracts and boilerplate terms that they themselves probably do not understand. Do not always assume that the other party knows more than you do! Before you do anything, I’d call the station and discuss your situation/concerns with them. Perhaps they will waive the requirement. Perhaps they can agree to allow you to purchase a general liability policy to cover your group in lieu of a workers compensation policy.

However, regardless of whether or not you are “required” to have workers compensation either as a matter of law or by a contract, consider the possibility that if a staff member, a chorus member, or a volunteer were to be injured during a performance or in providing some other service for your organization, your organization could be liable. So, I’d strongly recommend that you obtain a general liability policy to cover injuries to any of your performers, staff, or volunteers who provide services to your organization.

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For additional information and resources on this and other legal and business issues for the performing arts, visit ftmartslaw-pc.com.

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. FTM Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

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Posted in Arts Management, Contracts, Employees, Independent Contractors, Law and Disorder: Performing Arts Division, Liability, Non-Profits | Comments Closed