Ethics Question for nonprofit production

[moe_snodgrass]

Thanks for looking:

The grantwriting process for my nonprofit film requires that I project rental costs for equipment.

If I already own the equipment, do I simply rent and invoice the equipment I already own to the nonprofit production at the average rental rate for my region?

Is this ethical?

If yes, this situation will likely create a surplus in revenue (created by the rental fees) greater than the value of my equipment. How do I handle this; that is, does the surplus become contingency money?

Then, if the contingency money remains surplus (goes unused because the production comes in under budget) how do I dispose of this remaining surplus?

Should I make my fiscal sponsor and grantors aware of these factors in the proposal or is this taken for granted?

If the above scenario is not ethical, how best to proceed?

As an aside, most grants do not allow a nonprofit production to purchase equipment, only rent.

Thanks again,
Moe

 

[thisiswells]

this situation will likely create a surplus in revenue (created by the rental fees) greater than the value of my equipment.

You may find this helpful. The rule for equipment rental used to be 4% of the value of the equipment as the day rate. The weekly rate was defined as 3 days. The monthly rate was defined as 9 days. This can vary depending on several factors, including supply/demand. It's very difficult to see how your rental would exceed the value of equipment using this model.

If you're willing and interested, I am sure you could offer free use of your equipment as a donation for the project. That is, if you're willing to accept liability for damage and repairs. If not, I would include the going rate for commercial rental and plan on renting instead.

Hope this helps.

 

[galt]

I would include the going rate for equipment rental. You may have your equipment break down, or need something different when the time comes, or wish you ha da crane, anamorphic, or some other piece of equipment. ( days rental on your DVX could pay for the anamorphic. You later have option of charging rental, or donating it as an "in-kind" donation either on your invoice or separately. If they press you to reduce the budget, you can always volunteer to donate the camera rental later on too.

 

[smithgallTV]

Moe, here is a book that I read a year or so ago at my local library. It may be a newer version at amazon but it covers all teh question you have. Its called: Shaking The Money Tree, 2nd Edition : How to Get Grants and Donations for Film and Video (Paperback)
by Morrie Warshawski