Nonprofit organizations focusing primarily on film and media production and broadcasting play a pivotal role in shaping culture, educating communities, and raising awareness about critical social issues. In addition, more and more organizations that may not have traditionally focused on film and media production and broadcasting, including churches and ministries, are increasingly utilizing these innovative methods of leveraging storytelling to connect with people and share their message with the world. These nonprofit organizations seek to inspire change, and spark deeper knowledge and understanding. By producing and broadcasting films, documentaries, music, and other media content, these nonprofit organizations have a unique ability to engage audiences, provoke thought, and drive meaningful conversations in society. And, nonprofit leaders in this space also have a desire to operate with genuine integrity and believe in real accountability.

Yet, nonprofit organizations whose exempt-purpose activities involve various aspects of film/video/music/media production and dissemination face unique accounting and tax compliance challenges. Having accurate information in these areas is critical to nonprofit leaders as they make key decisions in an effort to accomplish their exempt purposes. They need an accounting firm with specialized knowledge that can help them navigate the complex financial and regulatory requirements that come with this type of content creation and distribution...which is exactly what the BMWL team has a strong reputation for doing – helping our clients make sure their financial bases are covered.

Some of the ways in which our team assist nonprofit organizations operating in the film and media arenas include, but are not limited to:

• Recognition of Internally Developed Assets and Acquisitions
  We assist you in handling the capitalization and recognition of assets related to production activities, such as film/video/media production, licensing agreements, intellectual property, and more. It’s important to understand when to capitalize assets, when to write them off, and how to address issues like carrying value, impairment, and amortization.

• Revenue Recognition and Timing
  You need clarity, which our team can provide, on when to recognize revenue and when to defer it, especially as it relates to media and broadcasting activities.

• Unrelated Business Income (UBI) & Reporting
  We help you understand and properly report potential tax obligations related to income generated from activities not directly related to your nonprofit’s exempt purpose.

• Amortization of Production Costs
  We keep you apprised of tax considerations around the amortization of production-related expenses.

• Commerciality Doctrine
  We help you assess how the commercial nature of certain activities might impact your tax status.