However, I think there has never been a better time for documentary filmmakers to re-think their financial approach to documentary production.  We now have a combination of factors which I think is a perfect storm for profitable documentary filmmaking that still has the ability to create positive social change.  And personally, I think maximizing commercial value is one of the best means of ensuring maximum social impact.

For one, over the last 5-10 years, the style of documentary storytelling has evolved in such a way that docs have become more popular than ever among viewers who want to be entertained by a great stories about real life, which also address issues of social, political, or environmental significance (such as The Cove or Food, Inc.).  No doubt reality TV has helped increase documentary viewership to a degree, but I think the primary reason for the increased popularity has been the ability for a new wave of storytellers to integrate and adapt tools, styles and techniques from the the narrative storytelling world.  This has, in my opinion, raised the bar.

Second, the technology we now have gives us an unprecedented ability to deliver outstanding production value for low cost with minimal crews and gear.

Third, new legal forms now give us the ability not to have to choose between LLC and 501c3.  The fairly new L3C is a hybrid legal model developed initially for social enterprises, but works well for filmmakers with a social mission.  For example, the L3C allows you to accept tax-deductible donations from corporations and foundations which could not give to a for-profit LLC.  But what if you have an individual financier who would like to make money and make a difference at the same time?  Before the L3C, you would have to choose between donations or investments.  With the new model, not only can you still accept the corporate and foundation giving, but an investor can put money into the project and have the ability to make a profit.   In this case, instead of giving the money to you for your film as a tax-deductible donation, they now give it to you as an equity investment with an expectation of making profit from their investment in your project.

When doing any of our own productions, we focus on a “triple-bottom-line” approach like what you’d find with L.A.-based Participant Media:  creating projects with maximum commercial/entertainment value, returning profits to investors, and creating social action campaigns giving viewers the tools needed to create positive social change.

In summary, today’s legal and technological tools, combined with new approaches to storytelling, gives the ability for all stakeholders involved in a project to reap its rewards – the people who benefit from the social change created, the people who can now benefit financially (and emotionally) from investment in the project, corporate and charitable foundations whose mission is furthered by the project, and the producers themselves who can benefit financially and professionally by creating these projects which succeed in all areas;  that triple-bottom-line of entertainment value, commercial value, social value.