The most important part of any film project is financing because the production team needs money to pay for each phase of the filmmaking process. Filmmakers may find it difficult to secure funding for their projects, but there are a variety of potential financing sources accessible.
The majority of films are funded by a combination of investors, tax credits, grants, and other means. To pay for all of the costs that accrue during the production of a film, this money must be secured (typically by film producers and sales agents) at the start of the project’s development. There are two basic methods for obtaining this funding:
Through Studio: When a feature-length film is made under the umbrella of a big film studio (commonly referred to as a ‘Hollywood picture’), the film studio controls the majority of the financing. Typically, the film’s production company is responsible for performing the labor to find enough investors to fund the project.
Independently: An ‘independent film’ or ‘indie film’ is a film made without the assistance of a large studio. When a film is made independently of a studio, the producers are responsible for securing funding for their production. Independent filmmakers patch together funds for their films using their networks, tax credits, and grants.
Filmmakers can apply for a variety of scholarships and fellowships, ranging from government funding to grants from non-profit organizations, film festivals, and film institutes.
There are a variety of tax advantages, deductions, or refunds available in the United States and Canada for filming segments of a film or housing a film’s crew in specific places, generally to encourage tourism or take advantage of an area’s off-season.
Pre-sales are a way to get paid before a movie is finished by selling distribution rights to multiple territories (both North American and international distributors) before the movie is finished.
Whether it’s someone looking to diversify their financial portfolio or a wealthy individual who simply enjoys movies, private investors are another way to get a film funded. A fiscal sponsorship agreement allows a film team to collaborate with a nonprofit organization to gain tax-exempt status for their project.
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