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The Band Fund

B

bluewine

Inactive
Sep 4, 2008
10,296
27
WI
#1
How do some of you feel about the "band fund".

Personally, I had a bad experience with this fund, basically due to mis-managed or poorly managed band fund.

If the band needs money, for whatever, I would prefer to pay it out of my pocket. Just tell me what it's for, how much and when do you need the money.

I don't want band fund $s coming out of my gig split.

blue
 
#2
Band funds are okay if everyone agrees up front to exactly what the money is going to be used for, like maybe to buy a PA or produce a CD. These things should be used to benefit everyone in the band equally, so nobody feels slighted.

By no means should not be used for random expenses, such as maintaining a broken-down RV, $250 a month for website hosting, or paying for the lead singer's phone bill. Yes, I'm speaking from experience unfortunately.
 
#3
dlargent said:
Band funds are okay if everyone agrees up front to exactly what the money is going to be used for, like maybe to buy a PA or produce a CD. These things should be used to benefit everyone in the band equally, so nobody feels slighted.
Click to expand...

+1 There should also be a plan to what happens if band breaks up or if a member leaves. My 1st band (long ago) didn't have a PA. We bought, speakers, a power amp, mics, monitors. We had a handshake deal (you may or may not want it in a contract) that if you left the band on your own accord, you received nothing. If the band as a whole split up, the equiptment would be divided equally. When we did split up, I came out of it with a power amp, singer got PA speakers, drummer all mics, and guitarist the monitors. Were still friends (20 years later) so it must have worked out OK. You milage may vary as they say.:D
 
#4
dlargent said:
Band funds are okay if everyone agrees up front to exactly what the money is going to be used for, like maybe to buy a PA or produce a CD. These things should be used to benefit everyone in the band equally, so nobody feels slighted.

By no means should not be used for random expenses, such as maintaining a broken-down RV, $250 a month for website hosting, or paying for the lead singer's phone bill. Yes, I'm speaking from experience unfortunately.
Click to expand...

+1
 
#5
Our band fund pays for mostly everything. That includes gas, studio, merch, promo, part of rehearsal space, monthly\yearly fees on various websites and industry dues, jam beer(if we all agree), and other stuff that comes up. We only take personal cash from gigs if it's a really good pay cheque. I can't remember the last time I had to pay for anything band related besides my own gear and part of jam room rent. That being said, once we get our new album made we'll probably be back to paying out of pocket for awhile.
 
#6
I would NEVER go in together on gear. IMO, if someone wants to buy speakers and another guy wants to buy a board, that's cool. That way if the band tanks everyone can take their own gear. Going in on gear NEVER ends well.

I don't like the idea of an ongoing "fund" without a specific goals laid out. I'd want to know exactly what something's going to cost and save my gig money myself and put it in when it's needed. That way if something stupid happens I'm not out a whack load of money saved for a recording I'm not going to be on because I got fired or quit.

However, if the BL was to come to me and ask if I'd be willing to forgo some money from an upcoming gig for something like pictures, and we knew what it was going to cost, I'd be cool with that. Or if we were renting rehearsal space and we did a gig, and the next month was free because of the gig money... Even recording if I felt secure in the band and a schedule was laid out and my position was secured with a band agreement in place.

On going expenses off the top is fine with me, but a generic fund for unspecified expenses leads to the possibility of getting ripped off. I'd never be willing to invest more than I was willing to lose.
 
#7
Call me a control freak if you will, but I will NEVER be okay with a band fund unless I'm personally in control or in co-control of finances. I just don't trust other people when it comes to handling money because I've been screwed over one to many times by people either being absent minded or downright deceitful in regards to cash flows.
 
#8
You have to be able to trust your band mates, which is easier said than done in some situations. In my band we are all very close friends and I know that there are no hidden motives or personal greed. We have a fund that we all make deposits in. The only time it is used is when it is going to cover an expense that the entire band needs as a whole (recording, merch, publicity etc.) IT IS NEVER USED FOR PERSONAL EXPENSES, that's what our individual bank accounts are for. I can't imagine a different situation ever working out in the long run.

The only thing that can get a little hard is that we don't all have the same income and therefore can contribute different amounts. For that reason, we keep records of who has invested what, so that if we ever do make enough to money to take personal pay, we first repay everyone according to what they've invested and then start splitting things evenly. Even then, unless your band is pulling in major bucks, everything you make as a band should be re-invested, being a working musician is expensive!
 
#9
My band has a 'band fund'. The band gets an equal share of the money. We use it to print T-shirts, business cards, etc. We now have a separate "T-Shirt" fund that just regenerates the T-shirt and sticker money. Once we have too much in there and plenty of shirts, we can just move the money back into the band fund.

We used it to buy a drum head with our band logo on it. That's a pretty good use of the money.
 
#10
jmattbassplaya said:
Call me a control freak if you will, but I will NEVER be okay with a band fund unless I'm personally in control or in co-control of finances. I just don't trust other people when it comes to handling money because I've been screwed over one to many times by people either being absent minded or downright deceitful in regards to cash flows.
Click to expand...

+1

I had BL lose 900.00 out of the fund. He told us it was complicated and we wouldn't understand. Needless to say it was one of the reason the band broke up.
 
#12
Our band is organized as a Pennsylvania S corporation. We have a bank account for band-related expenses, out of which we pay:
-performances fees to our musicians/sound people;
-rehearsal space rent;
-web hosting fees;
-costs associated with our band's telephone/voicemail line;
-insurance;
-costs associated with acquiring charts;
-office supplies;
-accountant's fees;
-other duly approved expenses.

Writing checks out of the band account requires two signatures. There are four people (the three band shareholders, plus our treasurer) who have signature authority. All of our records are maintained by our treasurer in Quickbooks, and available for review if there are ever any questions about where money has gone. I get periodic summary reports on where we stand.

In other words, it's a business, and therefore, we treat it like one.
 
#18
You can have the band fund as the xth member of the band, always stashing 1/xth share of gigging income into it. Like Febs said it does need to be audited and properly monitored. Obviously starting out you'd need some funds into it, so each member will need to cough up something that represents a share of the company, considered a deposit. With that, each member has an incentive to get gigging and earning money.
 
#19
Here's an idea!

Say there's four people in a band and they buy 1000$ worth of equipment from a band fund. Each year it devaluates with 20% (or any percentage you choose).

So after 1 year, it's still worth 800$. After 2 years 640$ (800 - 20$).

Then, one member leaves and takes home 160$ (640/4).

Never did this in reality, because I own the practice PA (I sing lead too) and we never had to buy anything as a band yet.
 
#20
julio.gamiz said:
Here's an idea!

Say there's four people in a band and they buy 1000$ worth of equipment from a band fund. Each year it devaluates with 20% (or any percentage you choose).

So after 1 year, it's still worth 800$. After 2 years 640$ (800 - 20$).

Then, one member leaves and takes home 160$ (640/4).

Never did this in reality, because I own the practice PA (I sing lead too) and we never had to buy anything as a band yet.
Click to expand...

That's accounting principles right there. Again an example of treating it as a business, which is good!
 

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