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info on starting a new corps?


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I'm not a new member but I couldn't decide where else to ask this question. I tried the search function but it was mostly useless. I'm sure there have been threads on these boards with info/discussion on getting a new corps started. Can anyone point me towards those threads? Thanks!

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It helps if you narrow down the criteria. Jr. Corps / All-ago? For profit / Not for profit? Small / Big? Have equipment / Don't have? Most often the governing body of the destination should help. DCI? DCA? SDCA? ??? And there are threads out there on the subject. Most of which say email so and so at such and such.

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If you're aiming to go small all-age Corps, I'd recommend you contact some recent new small all-age Corps (such as the Sun Devils) and ask how they did it.

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For the record, I have no interest in starting a new corps!

Just curious about the process. Regardless of size, every corps obviously needs equipment, facilities, staff and membership. I'm curious about some of the things that might not be so obvious. For instance, how much insurance coverage and what kind, do you need to be a 501, any other items or advice that people who have done it can offer. Particularly anything that made you say "I didn't realize that was going to be a problem".

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The big clincher is money. You can't rely solely on member dues. It's going to cost to start a corps. The bills as they were pile up before you even hold your first camp and take your first dues payment. Some corps are fortunate to inherit equipment from a former corps(sun devils / vigilantes). Others like the Austin Stars while not equipment-less don't AFAIK own a single horn/bugle being used by the membership. And you've got to factor in long term expenses. Having gear requires storage space. Having vehicles requires insurance and storage space. These expenses don't pay for themselves and don't go away if the corps takes a year off / folds.

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Alex, you deserve a couple of direct answers...

profit or non profit is your choice - to participate in either DCA or DCI you must by definition be non profit. It's demanded in our separate 501C papers.

501C designation... this is NOT a drum corps thing. It's the law of the land. If you are a non profit and raise in excess of $25000 per year BY ANY MEANS including dues and membership fees to cover travel or ticket sales for a show you might run... then you must BY LAW file for 501C status with the IRS (probably C3 but there are other designations possible). Failure to file subjects you to a fine of "25% of all monies raised for the previous 5 years..." This is not something anyone should ignore.

Additionally, whether you make $25000 in revenue or not, you have to file a 990 tax return prior to May 15th each year.

So the bottom line is - if you're going to play the game - you play the game by the rules set by the state and federal governments.

You incorporate (necessary to reduce the chance of personal liability - does not completely do so but drastically reduces it)

Get your EIN number (even if you don't have employees - yeah right - who doesn't?)

File for your 501C

File your annual income tax papers

Insurance? I recommend $2,000,000 liability - I also recommend a separate Board of Directors/Manager's insurance. It's not expensive and protects the board.

This is necessary because as previously mentioned, incorporating does not completely relieve you of liability. For instance, if there is an accident - the injured parties will first go after the corporation and its insurance, but then go after WHO EVER if that falls short of an injury reward.

This is especially true in Drum Corps... Let's use an awful example... The corps equipment truck driven by your volunteer crashes into a van during an overnight trip to a show site - several are killed.... multi million dollar settlements are OH SO COMMON... so let's assume the settlement to all parties totals $10 Million

First to pay - your auto insurance - maybe you're smart enough to carry $1,000,000 in coverage

Second to pay - your organization's liability $2,000,000

Third to pay - you disolve the organization and all assets are liquidated - this is seldom successful, if you're a well equiped corps maybe $200,000 (that's high)

so we're covering 10 mil with $3,200,000

does it stop there? $6,800,000 short? maybe - maybe not

suppose the equipment truck driver fell asleep? Then they go after HIM personally too... but he's not rich so maybe with all his personal insurance and net worth they get another $500,000

wow - you're only $6,300,000 short...

Now - even though you're incorporated - a smart lawyer says: "hmmmm director ordered him to drive overnight. My investigation shows the guy was filling water buckets when he should have been sleeping. Aha... the board approved the director... now I can go after each of them personally."

Bottom line - Buy management/Board of Director's insurance, too

Now you know why there aren't as many corps today as there were 40 years ago...

These are some of the things I'm referring to when I say that "societal changes" have had a bigger effect on reducing the number of corps than any other thing - including what key the horn is in or whether or not you use electronics... We as an activity are part of an ever changing society and frequently are forced into doing things that are distasteful to many and consequently reduce the number of participants on all level... and with the current political climate? It can only get WORSE...

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Now the other answer - DCA will do anything it can to advise a new organization that is interested in participating... Myself, Joe Geswaldo, Vic Kulinski, Amber Roeker and Business Manager Dick Eschenmann and many others are frequently put in the position of playing "Advisor".

We give of our time and experience - freely and gladly - for the betterment of the activity.

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  • 2 weeks later...

Sounds like you have to have alot alot ALOT of money, if you lived in tennessee id say you better win the lottery. If I eer won that 21 mil Id start a drum corp and fund it fully at the beginning haha

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For the record, I have no interest in starting a new corps!

Just curious about the process. Regardless of size, every corps obviously needs equipment, facilities, staff and membership. I'm curious about some of the things that might not be so obvious. For instance, how much insurance coverage and what kind, do you need to be a 501, any other items or advice that people who have done it can offer. Particularly anything that made you say "I didn't realize that was going to be a problem".

Problems always come up that even God could not predict.

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Ok, here's my spiel:

Need to file:

Articles of Incorporation

134A

SS-4

1023

2848/8821

990

And a 990-T if your business gets more than

$1,000 in income unrelated to its business.

Food Costs:

They tend to vary, especially among bigger corps

where there is a greater variety on the menu.

Typically, for a small corps (less than 50) it costs

about $200 per day (not taking into account leftovers

from previous meals) and $400 per Camp Weekend

on the pre-season.

Insurance:

Most non profits are covered already from liability, but added

coverage is smart, yet expensive. Accident insurance for FMMs,

staff, volunteers, and workers-for-hire wouldn't be too bad.

Typically, a small group can be covered for no more than $300

a month (this is performer's insurance, not liability coverage).

After all this, you need to move at high speed to ensure that you can comply with DCI's list of requirements, including licensing to arrange, a full roster for staff and members, birth certificates, a copy of insurance documentation with DCI listed as a secondary, volunteer base, full menu, plans for transportation, assets, accounts payable/receivable, etc.

Mucho work.

Edited by ImperialSound_Director
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