info on starting a new corps?

[hardcoremello]

YOU NEED ANOTHER BABY ALREADY?!?!??!?!?!?!? :

[Sounds Of Philadelphia]

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...

No truer words have ever been spoken from someone who really knows the current climate of Drum Corps.

Now with that said, remember that by no means think that when you open the doors to operate a drum corps that the people will just flock in your doors to be a member.

You will have to work Really hard to gain membership and keep them. people will come and go till you get the product you are looking for. something to think of is TIME. think long term when you start out, a Corps will not form overnight. have a long term plan to make it out onto the field corps or Parade corps.

Something we have found out ourselves here is when we started out we thought we would just open the doors and they would come but found out that people are tougher to fill the spots than what it first looked like so as an organization we stepped back and adjusted our time table, added a few different sub groups to better equip ourselves to sustain the organization and will be out full force in 2010.

If for nothing else this board is the perfect place to gain information from people in the know as well as to reach out to people who can guide you in the right directions.

a personal note to Tom P. Thank you for all of the help you have guided Mr H on over the months. we are using what you have taught him to make this a perfect organization as we come out in the new year.

Edited July 10, 2009 by Sounds Of Philadelphia