BD Pro Percussion "Fatboy". Never been anything like it.

[84BDsop]

Regardless (and FWIW I haven't seen anything about System Blue breaking from BD), it's odd that BD is so heavily in the marketing materials, website, etc. yet doesn't actively use the product. Maybe there will be an announcement this year later down the road, or previous endorsement contracts with Pearl complicate things, etc. But purely from a potential customer's perspective, if I'm looking at buying a new battery for my HS program I would not have any confidence if the group who developed the product doesn't even use the product

A valid point, and I suspect the Pearl contract is the deciding factor.

It's also possible that the drums will switch later in the year.

[gbass598]

The Board for System Blue consists of members who are also on the BD Board of Directors. BD is also listed as a System Blue Performing Artist on their website.

I'm sure they have probably taken steps to separate the entities in legal terms since the board are technically different, they are certainly still strongly tied together. System Blue Appears to be a for profit entity while BD Performing Arts is a not for profit entity.

Heck, its probably smart to do it from a liability standpoint so one organization's potential losses couldn't take down the other. i.e. System Blue hypothetically fails as a business somewhere down the road. If that were to happen, the it could hurt the overall structure of the corps if BD Performing Arts were responsible for their debts..

For what it's worth, the 2013 guidestar tax documentation for BD shows $104,017.00 as "System Blue Income". I know that's a couple of years old but that is the most recent info on the site.

[Quad Aces]

For what it's worth, the 2013 guidestar tax documentation for BD shows $104,017.00 as "System Blue Income". I know that's a couple of years old but that is the most recent info on the site.

How is it that a non-profit (BD) is providing a for-profit (System Blue) with $104,017.00 worth of income? How is that "non-profit"?

[Dan Detweiler]

I don't see this as any different than running bingo, selling raffle tickets, or gaining income from running clinics. Non profit doesn't mean non income. These organizations run on multi million dollar budgets. That money has to come from somewhere. I applaud BD for coming up with new innovative ways of supporting their activities. By the way, I believe their dues towards their members are among the lowest in DCI.

Now that System Blue is its own entity I don't know how that will impact the situation at Blue Devils. It probably won't. BD rarely enters into anything without a healthy understanding of the impacts of those activities.

Dan

[Brian Tuma]

How is it that a non-profit (BD) is providing a for-profit (System Blue) with $104,017.00 worth of income? How is that "non-profit"?

The income is FROM System Blue!

[garfield]

How is it that a non-profit (BD) is providing a for-profit (System Blue) with $104,017.00 worth of income? How is that "non-profit"?

I'm not agreeing with his summation, but it's the other way around. SB provided BD with income. How is that possible? Because SB is a for-profit entity.

[mingusmonk]

I'm not agreeing with his summation, but it's the other way around. SB provided BD with income. How is that possible? Because SB is a for-profit entity.

And why do I feel like we are about to go explaining that "non-profits" can make a profit for the 100th time? (to others. Obviously not to you garfield.)

Couldn't System Blue still be a part of the BDPA 501c3, not a separate Corp, and simply be serving support, financial and otherwise, to the BDPA Service Programs (BDA, BDB, BDC, Diablo Wind Symphony)?

Edited January 29, 2016 by mingusmonk

[garfield]

And why do I feel like we are about to go explaining that "non-profits" can make a profit for the 100th time? (to others. Obviously not to you garfield.)

Couldn't System Blue still be a part of the BDPA 501c3, not a separate Corp, and simply be serving support, financial and otherwise, to the BDPA Service Programs (BDA, BDB, BDC, Diablo Wind Symphony)?

I'm sure this is not the only reason but, if you were considering buying new equipment for your musical group, would you buy it from a NFP?

As a for-profit, SB can negotiate deals, enter into contracts and, generally, do business in a way that BDPA can't, and/or maybe shouldn't.

Call me Schultz.

Edited January 29, 2016 by garfield

[c mor]

I'll bite...

For profit Companies exist to make a profit for someone's (sole proprietor) benefit, or group (partners, stock holders) If the business closes down, the residual after liabilities are paid are distributed to those who hold an equity stake.

Non profits exist to benefit society. If they close the doors, the residual if any, is supposed to be distributed to another organization of like goals, and not to a specific person or persons.

I have no knowledge of BD's workings, but it is possible that Dave Gibbs, purchased System Blue from BDPA and wants to run it himself because of entrepreneurial goals/dreams, and chance to profit from the success.

[garfield]

I'll bite...

For profit Companies exist to make a profit for someone's (sole proprietor) benefit, or group (partners, stock holders) If the business closes down, the residual after liabilities are paid are distributed to those who hold an equity stake.

Non profits exist to benefit society. If they close the doors, the residual if any, is supposed to be distributed to another organization of like goals, and not to a specific person or persons.

I have no knowledge of BD's workings, but it is possible that Dave Gibbs, purchased System Blue from BDPA and wants to run it himself because of entrepreneurial goals/dreams, and chance to profit from the success.

Non-profits don't exist to benefit society (does drum corps?). They are non-profit because most of their revenues are plowed back into their mission, whether they benefit society or not, and not used to enrichen owners or shareholders.

In fact, non-profit orgs are generally chastised for building up significant war chests of dollars not spent on their mission. I don't know anything about that occurring at BDPA, but I can steadfastly assure you that they have the best legal and business minds making such decisions.

While surely possible, I really don't think that Dave Gibbs "purchased" BDPA. More likely it was structured more of a spin-off from BDPA (call me Schultz, I said!) in order for the massive marketing machine that is System Blue to be unleashed.

A succession plan that allows smooth transition to another corps director (Eric) while still allowing the expertise learned by Gibbs & Co to flourish for the betterment of the org is one that is well conceived and executed. Seems like SB, BDPA, Gibbs and Co, and the new director are all winners here.

Remember that a for-profit entity (like SB) that contributes its earnings to a charitable org (like BDPA) gets the same tax benefit as any other donor. Profits made by SB selling equipment could be shuttled to BDPA or used to grow the taxable empire to support the corps.

Remember, I'm "I know nothing. I want to know nothing!" Schultz.

Edited January 29, 2016 by garfield