When people come together to form a group for the purposes of collaborating to stage a project — such as a one-off performance, production or even a music festival — and they need to gather funding, they may find a need for an Auspice Agreement.
Why Do I Need An Auspice Agreement?
When collaborating with others, it’s likely that you may not want to register a company for a one-off project.
But, being unregistered, you may find it difficult to engage with other companies and financiers in order to obtain funding for your project. This is where an Auspice Agreement would come into play.
What Is An Auspice Agreement?
An Auspice Agreement is a written agreement between an Auspicor (e.g. a Production Company) where they will receive and manage money from a Funding Body (a bank, sponsor or other lender). This will be done on behalf of the Auspicee (who may be a theatre collective the group of playwrights, actors, directors, lighting and stage hands that come together to put on the show, for example), usually for a fee.
The Auspicor will ultimately be responsible for managing payments and cash-flow concerns on behalf of the Auspicee. They also need to report to the Funding Body and keep record of the finances.
An Example Of An Auspice Agreement
Chris is a performer who has written and produced a play. He would like to obtain a loan so that he is able to find a theatre to perform it in.
Chris decides to approach Monstera Productions, a theatre company, to help in obtaining and managing the funding for his production. They both sign an Auspice Agreement to formalise the arrangement in which Chris is the Auspicee, and Monstera Productions is the Auspicor.
How Can I Get One?
Whether you’re considering an Auspice Agreement or looking to register a corporate legal entity, it can be useful to speak to a lawyer.
It’s important to get your Auspice Agreement together in an efficient manner, especially if there are time constraints in relation to the project you’re undertaking.
Don’t hesitate to give us a call on 1800 730 617 or email us at email@example.com for a free, no-obligation chat about your Auspice Agreement.
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