A Filmmaker's Glossary of Film Funding Terminology

A colleague of mine asked me if I had a glossary on film financing terms in the same way I wrote one for film distribution (which you can check out here.)  Since I didn’t have one, I thought I’d write one.  After I wrote it, it was too long for a single post, so now it’s two.  This one is on general terms, next week we’ll talk about film investment terms.
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Capital

While many types exist, it most commonly refers to money.  
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Financing

Financing is the act of providing funds to grow or create a business or particular part of a business.  Financing is more commonly used when referring to for profit enterprises, although it can be used in both for profit and non profit enterprises. 
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Funding

Funding is money provided to a business or non-profit for a particular purpose.  While both for-profit and non-profit organizations can use the term, it’s more commonly used in non-profit media that the term financing is. 
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Revenue

Money that comes back into an organization from providing shrives or selling/licensing goods.  Money from Distribution is revenue, whereas money from investors is financing, and donors tend to provide funding more than financing, although both terms could apply.
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Equity

A percentage ownership in a company, project, or asset.  While it’s generally best to make sure all equity investors are paid back, so long as you’ve acted truthfully and fulfilled all your obligations it’s generally not something that you will forfeit your house over.  Stocks are the most common form of equity, although films tend not to be able to issue stocks for complicated regulatory reasons and the fact that films are generally considered a high risk investment.
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Donation

Money given in support of an organization, project, or cause without the expectation of repayment or an ownership stake in the organization.  Perks or gifts may be an obligation of the arrangement. 
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Debt

A loan that must be paid back. Generally with interest.
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Deferral

A payment put off to the future.  Deferrals generally have a trigger as to when the payment will be due.
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“Soft Money"

Generally money you don’t have to pay back, or sometimes money paid back by design.  In film, it’s most commonly used to donations and deferrals, tax incentives, and occasionally product placement.
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Investor

Someone who has provided investment to your company, generally in the form of liquid capital.
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Stakeholder

Someone with a significant stake in the outcome of an organization or project.  These can be investors, distributors, recognizable name talent, or high level crew. 
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Donor

Someone who has donated to your cause, project, or organization. 
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Patron

Similar to donors, and can refer to high level donors or financial backers on the website Patreon.  For examples of patrons, see below. 

Donald Evans​​​

Ashley P

Clever Username ​

Non-Profit Organization (NPO)

An organization dedicated to providing a good or service to a particular cause without a direct financial benefit. 
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501c3

A tax code required for non-profits to be exempt from paying certain taxes in the United States. 
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Non-Government Organization (NGO)

Similar to a non-profit, generally larger in scope.  Also, something of an antiquated term. 
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Foundation

An organization providing funding to causes, organizations and projects without a promise of repayment or ownership.  Generally, these organizations will only provide funding to non profit organizations. Exceptions exist. 
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Grantor

An organization that funds other organizations and project in the form of grants.  Generally, these organizations are also foundations, but not necessarily.
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Fiscal Sponsorship

A process through which a for profit organization can fundraise with the same tax exempt status as a 501c3.  In broad strokes, an accredited 501c3 takes in money on behalf of a for-profit company and then pays that money out less a fee.  Not all 501c3 organizations can act as a fiscal sponsor. 
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Investment

Capital contributed to an organization in exchange for an equity stake, although it can also be structured as debt
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Deck

A document providing a snapshot of the business of your project.  I recommend a 12 slide version, which can be found outlined in this blog or made from a template in the resources section of my site, linked below.
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Related: Free Film Marketing Resource Package

Look Book

A creative snapshot of your project with a bit of business in it as well. NOT THE SAME AS A DECK.  There isn’t as much structure to this.  Check out the blog on that one below. 
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Related: How to make a look book

Audience Analysis

One of 3 generally expected ways to project revenue for a film.  This one is based around understanding the spending power of your audience and creating a market share analysis based on that. I don’t yet have a blog on this one, but I will be dropping two videos about it later this month on my youtube channel.  Subscribe so you don’t miss them.
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Competitive Analysis
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One of 3 ways to project revenue for an independent film.  This method involves taking 20 films of similar genre, attachments, and Intellectual property status and doing a lot of math to get the estimates you need. 
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Sales Agency Estimates

One of 3 ways to project revenue for an independent film.  These are high and low estimates given to you by a sales agent.  They are often inflated.
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Related: How to project Revenue for your Independent Film

Calendar Year

12 months beginning January 1 and ending December 31.  What we generally think of as, you know, a year. 
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Fiscal year

The year observed by businesses. While each organization can specify their fiscal year, the term generally means October 1 to September 30 as that’s what many government organizations and large banks use.  Many education institutions tie their fiscal year to the school year. 
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Film Distribution

The act of making a film available to the end user in a given territory or platform. 
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International Sales

The act of selling a film to distributors around the world. 
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Related: What's the difference between a sales agent and distributor?

Bonus: Some general use Acronyms

YOY

Year over Year.  Commonly used in metrics for tracking marketing engagement or financial performance on a year to year basis.
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MTD

Month to Date. Commonly used when comparing monthly revenue to measure sales performance.
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YTD

Year to Date.  Commonly used in Year over year metrics or to measure other things like revenue or profit/loss metrics.  
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OOO

Out of Office.  It generally means the person can’t currently be reached. 
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EOD

End of Day. Refers to the close of business that day, and generally means 5PM on that particular day for whatever the time zone of the person using the term is working in.  

Thanks for reading this!  ​Check back next week for some some terminology more directly related to investment.  If you liked it, share it.  I’ve got buttons below. 

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