For-Profit Drum Corps

[Jeff DeMello]

There is a mis-conception about "not for profit" corporations and "for profit" corporations.

"For-profit" organizations exist to earn and re-distribute taxable wealth to employees and shareholders.

"Nonprofit" corporations exist solely to provide programs and services that are of self-benefit.

That's it.

It has nothing to do with entertainment, paying staff, renting stadiums, etc.

Non-profit organizations do not have to be "small" or "locally run". There are many examples of large non-profit corporations: Carnegie Corporation of New York, Goodwill Industries, United Way, The National Rifle Association, Habitat for Humanity, the Red Cross and Red Crescent organizations, UNESCO, IEEE, and World Wide Fund for Nature. Between 1953 and 1980 Hughes Aircraft Corporation was a non-profit, as all the profits were transferred to Hughes Medical Institute (ergo no taxable wealth to employees or shareholders).

I have actually seen financial models where a for-profit drum corps model actually could succeed ... however, it would take a LOT of business acumen on behalf of the corps business organizations ... i.e., "running a business which happens to be a drum corps" vs. "running a drum corps". A fine distinction, but one that separates the successful organizations from the unsuccessful ones.

As far as Blast! ... I believe that was a great example of a "for profit" company loosing a lot of money!

[Tom Brace]

There is a mis-conception about "not for profit" corporations and "for profit" corporations.

"For-profit" organizations exist to earn and re-distribute taxable wealth to employees and shareholders.

"Nonprofit" corporations exist solely to provide programs and services that are of self-benefit.

That's it.

It has nothing to do with entertainment, paying staff, renting stadiums, etc.

Non-profit organizations do not have to be "small" or "locally run". There are many examples of large non-profit corporations: Carnegie Corporation of New York, Goodwill Industries, United Way, The National Rifle Association, Habitat for Humanity, the Red Cross and Red Crescent organizations, UNESCO, IEEE, and World Wide Fund for Nature. Between 1953 and 1980 Hughes Aircraft Corporation was a non-profit, as all the profits were transferred to Hughes Medical Institute (ergo no taxable wealth to employees or shareholders).

I have actually seen financial models where a for-profit drum corps model actually could succeed ... however, it would take a LOT of business acumen on behalf of the corps business organizations ... i.e., "running a business which happens to be a drum corps" vs. "running a drum corps". A fine distinction, but one that separates the successful organizations from the unsuccessful ones.

As far as Blast! ... I believe that was a great example of a "for profit" company loosing a lot of money!

Which at one point is why it ends have to be a "profit" company. The tax guys will call it a hobby if your not making money after 3-5 years.

[markdewine]

Toughest part of a for-profit drum corps would be the cat fights between prima donna performers.....

"I must have x amount for the season, because I was with such-&-such corps, and the won x many World titles. THAT person only marched with so-&-so and NEVER won a championship!"

[BozzlyB]

This happens when your average fan is willing to pay 250.00-500.00 for an average show. In other words never.

[HockeyDad]

Is the lack of audience due to lack of intrinsic entertainment value or lack of exposure (marketing). Would it change if DCI tried to create more of a presence in larger markets?

I'm sure Mike D will tell you audiences are larger than ever. Daniel Patrick Moynihan once said that you're entitled to your own opinion, but you're not entitled to your own facts. Apparently in DCI, we don't need to follow that rule. Facts are open to debate. One would think that it wouldn't be overly difficult to determine overall attendance at all summer contests. I would think this information should be vitally important to DCI. How else do you know if your marketing is working? Feel good? Anecdotal evidence? Finals attendance only? Finals plus regional shows only?

[Dave]

What will being "for-profit" change about the activity that can't exist as a non-profit? It's about the tax structure, not, as Jeff pointed out above, something that affects getting paid for marching or how much money is made, or anything else. Remember, "non-profit" doesn't mean "doesn't make a profit."

[Michael Boo]

...

As far as Blast! ... I believe that was a great example of a "for profit" company losing a lot of money!

Oh, Jeff...that is so far afield of what ultimately happened I don't even know where to begin.

Blast! took awhile to turn the corner and those involved with its creation and promotion had to have patience. But then it became a smashing commercial success and a testament to the saying that all good things come to those who wait.

[Fran Haring]

It matters not whether the corps is not-for-profit or for profit, the audience is not there to sustain this activity for the long term.

I would tend to agree with that. I hate to sound pessimistic, but I do wonder (worry?) about the viability of the activity on a long-term basis, on all levels..... DCI, DCA/all-age, and alumni.

Perhaps we should enjoy what we have, while we still have it.

Fran

[Jeff Ream]

What will being "for-profit" change about the activity that can't exist as a non-profit? It's about the tax structure, not, as Jeff pointed out above, something that affects getting paid for marching or how much money is made, or anything else. Remember, "non-profit" doesn't mean "doesn't make a profit."

tax structure also means wealth can be distributed to the employees. I see this meaning salary for performers.

[Dave]

But what stops that from being the case as a non-profit? Paid employees are not unknown to non-profits.