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Your event
How to organise eventsOrganising your event | Locations and venues | Getting permission | Event safety | Event security | Resources | Waste management | Traffic management | Funding and your budget | Licences | Insurance and damage | Pay your invoice Funding and your budgetOne of the first and most important questions that has to be asked when planning for an event is "Where is the money coming from?" Apart from earned income, such as box office, admittance fees or workshop fees there are various income sources that can help finance your event. GrantsTiming and preparation are major considerations when applying for funding. Generally, planning should start at least 6-12 months in advance as applications will also have to be submitted many months ahead of your event and it often takes several months from that date before the results are notified. Wherever you apply, the principles are the same:
Possible funding sources:
Things to consider:
Have a "plan B" - what will you do if you don't get funded? SponsorshipSponsorship differs from grants in that the sponsoring organisations usually require publicity, profile and other benefits via your event. For example, Coca-Cola sponsors the "Coca-Cola Christmas in the Park" concert and Vodafone sponsors the Warriors. These organisations provide financial support to these events so that in return they can promote their message, product or service to their target markets. Avenues of sponsorshipLook locally for sponsorship - local businesses, clubs and organisations may offer support for your event. For example, a local business may provide a tent to be used for information or changing, in return for hanging their banner and handing out some pamphlets. Local businesses and your local newspaper may wish to support the event by sharing the cost of a full page advertisement in the local paper - the event advertisement can occupy a portion of the page and local businesses can take out advertisements on the remainder of the spaces. You need to remember that sponsorship is essentially a business arrangement, not a handout. It is about making a mutually beneficial deal. Document all negotiations and agreements to ensure that both parties' needs are met and to ensure that you have something in writing in case things don't go as both parties planned. Looking for large amounts of sponsorship money can take time and skill. If possible draw on the experience of someone who has negotiated sponsorship deals of this size before. Leave at least 8-12 months or more, if feasible, to begin searching for sponsorship and be aware that most companies apportion their sponsorship funds at the beginning of their financial year. Donations and in-kind supportDonations and in-kind support can be very valuable to your event budget. When donations of goods are provided they are usually used to generate extra income. eg. prizes in a raffle, or for competitions. The donor may specify what they wish their donation to be used for. However, some donations may be for things that you would otherwise have had to pay for, enabling funding to be redirected. In-kind support includes such things as goods and services and assistance which can directly aid the event programme. For example, a local office may allow you to use their photocopier and telephone or a local printer may print some promotional material for you at a discounted rate. A local children's activity centre may agree to run a sand sculpture competition and children's games on the day of the event. Another group who are having an activity close to your event, and which complements your event theme, may agree to do reciprocal publicity of your event in exchange for you publicising theirs with your promotional material. Look at what you need in terms of equipment, props and staging. The possibilities and variety of support your event can gain through donations and in-kind support are endless. How to attract donations and in-kind supportWhen looking for people or groups to donate goods, money or in-kind support, approach your local community. Professional businesses, local traders, shopping centres, organisations and service clubs can all be approached. This should be done months prior to your event as it can take some time for people to respond to your requests. A good place to start locating these groups is your local community directory, newsletter or newspaper. Once you have decided who you are going to approach, you must plan how to gain their support. Writing a letter and then following it up with a phone call or a personal visit is a good process. Your approach in the letter is very important. Make sure you tell them the following information:
Recognising donations and in-kind supportMost people will want their donations or in-kind support recognised, mainly through publicity for their business or organisation. The event must acknowledge their support in some way, and how you do this will depend on the level of support that they have provided. There are many ways in which you can recognise people's support. Here are a few examples:
Gaming/rafflesOnly a society can be licensed to conduct a gaming activity. If you wish to operate a lottery or raffle with prizes totalling $500 or more this is considered a gaming activity so you will require a licence to operate the raffle, and must be registered as a society to do so. There is a fee involved with getting a licence. If the prizes total less than $500 your society does not require a licence but must comply with the conditions set out in the Gaming and Lotteries Act 1997. We recommend that you view the Rules for Running a Gambling Activityon the Department of Internal Affairs website before you begin planning your raffle. If you have any queries about your raffle, you can contact the Gaming Licence Officer at the Department of Internal Affairs. Budgets and costingPlanning event finances well can make it a lot easier to run the event effectively so drafting and operating the event budget is vital. Drafting a budgetIn the first stages of planning an event you may be submitting an application for a grant. It is essential that you have an idea of how much money you will need to run the event and what the money will be spent on. Remember - you can only spend what money you have. Suggestions:
Tips for drafting a budget:
When you have worked out your proposed expenditure, it should be equal to (or less than) your income. Your expenditure can't exceed your income. By costing each activity or aspect of the event separately it may help you in obtaining sponsorship or a grant. Businesses and organisations may be interested in sponsoring a particular part of the event that may be compatible with their operations. Check if there is a cost for permits and extraneous services that may be incurred, eg. fees for staging an event in a community park, the cost of advertising a road closure, the cost of a letterdrop to local residents, paying First Aid staff etc. Often these items are overlooked. All artists, musicians, performers and support staff eg, technicians, cleaners etc, should be paid for their services. Check with APRA, the Musicians' Union, or Actors' Equity regarding current rates of pay. Don't expect artists to give their services cheaply or for free. This is their means of earning a living. When costing out the hire of equipment or other goods or services look in the Yellow Pages. It's advisable to ring at least three firms and obtain quotes to give you an idea of going rates. If a firm doesn't have what you want or can't help you, explain exactly what you're after and ask them if they can refer you to a more appropriate place. If possible, leave a little extra in the budget for extra costs. It is difficult to anticipate all the unexpected situations that will happen on the day. The nearest you can get to this is to anticipate that some situation will occur that will cost you money. Also you may need to pay for some repairs for damage incurred during the event. The role of the committee in overseeing and approving the budgetIt is the role of the committee to secure funds for the event and to ensure that the event comes within budget. The committee is generally accountable to other organisations, eg, funding bodies, and has contractual or legal responsibility to ensure funds are appropriately spent. The treasurer or financial manager informs the committee of the event's financial situation. The committee then decides the appropriate course of action based on this information. The treasurer/financial manager oversees all financial aspects of the event. For this reason, this role should be filled by someone who knows about accounting and/or finances. The tasks of the treasurer/financial manager include:
Operating the budgetIt is vital that once you have budgeted for the various programme areas that you stick to your budget. It is no good deciding a week before the event to add extra activities, shows, exhibitions or employ additional people if you don't have money set aside for this purpose. Even if it's a brilliant idea, don't try to fool yourself that you'll come up with the money later. Better to save the idea for next time and budget it into your overall event programme. If there isn't sufficient funding for everything you planned where will you make cuts? Will it be over the whole programme or particular aspects of it? Make sure money donated or promised is received and receipted. All monies received and spent should be accounted for. There should be an event accounts book and everything should be recorded in this by the treasurer/financial manager. Ideally funds should be readily available as required. It is wise to plan your grant applications with this in mind. A certain amount of cash in hand will be required for minor or on-the-spot expenses. In addition, a large amount of money may be required on the day to pay performers' fees. Remember to safeguard money collected on the day of the event. Finalise all event accounts promptly. These should be paid as soon as possible after the event. Finally - use your money wisely. Some things must be paid for - performers' fees. Others can be found for free or at a reduced rate. All financial arrangements with artists, performers and hire companies should be confirmed in writing well in advance of the event. This will avoid confusion and disagreement later. Example of incoming/outgoing event funds
Updated May 2008 |
