Film Independent pays its executive well. Hudson, who has led the organization since 1991, received slightly more in 2005 base salary -- $265,000 -- than the heads of the Oscars-affiliated Academy Foundation and the American Film Institute, which are much larger than Film Independent.
Hudson was paid nearly four times as much as her counterpart at American Cinematheque. Her salary was considerably less than Sundance Executive Director Kenneth Brecher's $387,500. But Sundance has more than 2 1/2 times the revenue of Film Independent.
Film Independent attorney Michael Donaldson defended Hudson's pay, saying it was reasonable for an arts charity Film Independent's size.
"She earns every cent," he said.
A salute to Clooney
Meanwhile, American Cinematheque and AFI also report their televised awards show costs as charitable expenses. American Cinematheque restored the landmark Egyptian Theatre in Hollywood and regularly screens classic and rare films. Last year, it saluted George Clooney.
"Comparing us to the Salvation Army, it's not the same thing," said Barbara Smith, American Cinematheque's executive director.
AFI runs a conservatory, film preservation center and exhibition theaters. In June, it will present Al Pacino with its Life Achievement Award.
"I do not think there is any question that could be raised about the educational value of those programs," Jean Firstenberg, AFI's chief executive, said of the achievement awards.
But Borochoff isn't convinced. "Honoring Al Pacino and considering it a charitable program, that's a pretty weak program," he said.
The watchdogs say film festivals \o7can \f7pass the charitable-program test if they deliver a cultural experience unavailable in the marketplace, offer some free or discounted tickets and avoid becoming highly commercialized promotional vehicles for studios and other corporate interests.
"The devil is in the details," Stamp said.
Robert Redford's Sundance Festival is lauded for championing non-mainstream films. It comps tickets for various groups and does not report its awards dinner as a charitable program.
But it also serves as a de facto market for studios, and its Park City, Utah, surroundings have become a promotional bazaar for corporations and celebrities. Festival organizers say those forces are beyond their control and have not sullied the program.
On its 2005 tax return, Sundance listed $7 million of its festival costs as charitable service expenses, out of a total budget of $15 million. The institute netted $1.2 million from the event. It spent about $4 million on filmmaking and theatrical laboratories, music programs and other services.
"We do quite a lot for a little," said Jill Miller, Sundance's managing director.
paul. pringle@latimes.com
