How To Raise Funds To Finance Your Events (Part 2)

How To Raise Funds To Finance Your Events (Part 2)

How to raise finance for your event

To  Make a Budget. Examples

In order to make the budget we need to ask, and answer, a few basic questions. What is the size of the event? To whom is it addressed? What participation expectations do we have? Where is the venue? All these questions were answered in part one of this article.

In every budget, there must be a total balance between income and expenditure.

Two example budgets are shown below. These are likely to be the most representative: a sport event and a scientific event.

The sport event is a social gathering with a large number of participants as this is a very dynamic sector that attracts widespread interest from both the audience and the sponsors if the right sportsman is chosen. As prevoiusly stated, one of the main goals of a sport event is to have economic benefits.

In the present example it is easy to see in the final balance the benefit obtained, as the income was higher than the expenses, and therefore the organizers will have a surplus either for the organization of the next event or for their own benefit.

 

In this example, expenses are:

 

SPORT EVENT

Transport, accommodation and competitors’ and judges’ allowances and salaries, which are the logistics expenses.

 

Opening Cocktail or Ceremony with the participants and the media.

 

Expenses of the corporate image: event programme, tickets, posters, journals, websites

(from which to sell online tickets), mailings (to the prospective participants and sponsors).

 

Technical and audiovisual equipment: screens for the results, cabins for the translators,

public address system, etc.

 

Coordination expenses. The technical secretariat means a very important cost but at the

same time it is their responsibility to ensure the success of the event, to plan, develop and

hold the event from the beginning to the settling of the accounts.

 

The press office will be in charge of the media coverage of the event. Further costs

are press insertions with the participants and dates.

 

Venues and premises: the space necessary to hold the event.

 

Public-liability insurance will cover the organizer’s responsibility in case of attendees’

accidents, faults in the facilities involving refunds or the cancellation of the event due to

participants’ injuries or withdrawal.

 

Unexpected costs are included here as they are likely to appear through the event.

 

There are four parts in the income section:

Participants’ fees: these are the attendees to the event who pay their ticket.

 

Sponsors: Sport labels and sponsors in general who will bring their economic support for

material expenses, easy to justify to the public tax office.

 

Public Institutions: All the funds received form the local government where the event takes

place.

 

Local Council: will provide the funds for the venue of the event.

 

SCIENTIFIC EVENT: A CONGRESS OR CONFERENCE

For a scientific event the budget will include just the necessary expenses to hold it. It is not

necessary to include large sums for design, venue, etc and it will be more economical as the goal is in the latest scientific developments rather than the economic profit.

The difficulty lies here in the sponsorship of the event as it receives neither much media coverage nor immediate benefit for the private companies. Most financing comes from research grants or the support of research institutions. It is usually not more than what is needed to cover costs. Fees from the participants will help cover all expenses.

A special type of scientific event is the medical one because it attracts sponsorship from the pharmaceutical industry, interested in presenting their new products, to cover expenses such as catering (lunches and dinners), travelling expenses for the speakers, the proceedings, etc.

 

In this example, expenses are:

  • Transport, accommodation and allowances for invited speakers.
  • Catering: Coffee breaks and lunches included in the sessions.
  • Costs from the scientific programme and corporate image of the event. There will be at least three programmes, two tentative and a final one, depending to the dates provided by the organizing committee, with updated information to be sent to participants, speakers and public in general.
  • Technical and audiovisual equipment to be used at the sessions.
  • Organizational expenses: the technical and the scientific secretariat will be in charge of the development of the programme.
  • Venue. The venue will be a large Auditorium and Congress Centre
  • Public-liability insurance and delegates insurances.
  • Unexpected costs are included here as they are likely to appear through the event. Anyway, in this case these costs will be less likely to appear as all costs are usually accounted for.
  • There are two large parts in the income sections:
  • Participants Fees: The main source of income for this type of event.
  • Sponsors, Public Institutions and Universities: will cover part of the expenses, usually for
  • the plenary speakers and printing. These funds are easy to justify.

Transport: Do we need any means of transport? Rent a car, chauffeurs, coaches, air

transport and special vehicles.

 

Income and Financing

HOW CAN WE OBTAIN THE MONEY? SOURCES OF FINANCING

Once the budget is finished and the scope of the event chosen, the next step is to specify the type of financing needed for the balance of the budget. In any type of event there are always two types of financing: internal and external.

Internal financing: This is basically the funds belonging to the organization itself, resulting from previous events which were profitable and from the membership fees and private funds from the organizer.

External financing may come from:

Fees:From the participants and attendees in the event. It is calculated in a first draft taking as a reference a previous edition of the event or a similar one in order to foresee the income and know the fees to charge. Moreover, it is necessary to know the contribution from institutions, however rough the estimative may be, before the final fees are set. Fees tend to cover 50% of the total cost of the event.

 

Public Institution and Private Sponsor Institutional Help:

 

Institutional Help:

  •  Public Institutions: Local government and Town Council
  • Official grants: local, national, international.

Disadvantages with this type of grants are that they require complicated forms and endless

bureaucracy. Often, these grants are difficult to obtain because all costs need to be fully justified beforehand and partly or wholly returned if they do not cover the costs originally awarded for.

Another important aspect of these grants is that our event should not coincide in time with similar ones, as the sponsorship might be shared with similar events going on at the same time or simply over.

Sometimes, the grants are part of annual budgets established long before the event takes place. It is therefore necessary to apply long in advance and adapt our application to the amount awarded to that purpose.

Private Sponsors: Depending on the type and scope of the event it is possible to find private institutions (banks, saving banks, companies, sponsors, et.) to support the event partly or totally.

Sponsoring means to contribute in kind or cash in consideration for publicity and media coverage that the sponsors will receive in the short term.

When the contribution is in kind, the costs in the examples above will be covered. For example, the town council will pay for the expenses of the venue hire directly or a private sponsor will cover the travelling expenses paying themselves the tickets they accepted to contribute with.

 

Private sponsors may be:

Associations: legal entities made up by partners with the same purpose who pay a membership fee periodically with which to support this type of events.

Federations: Associations as a whole.

Companies: They finance events in order to become well known in the short term. They usually exchange their economic support for the chance to appear in the events appearing in the media.

Charities: These are non-profit legal entities which may have commercial activities devoting part of the benefits to support cultural, social or environmental activities.

Sponsors: They offer support, either in kind or in cash, in a long term consideration. The sponsors are the promoters and organizers of over 80% of the events arranged. Most events would not be possible without their support.

 

Pleasant Jay is an event management company that has been providing professional services for many years in Nigeria, Africa along with rest of the world for many years. Pedigree matters when it comes to getting professional help for the successful event you envision. We have a track-record of providing superb events planning services as per clients’ custom needs and requirements, always within their financial limit. We are a reputable company that achieves great feat in managing various events for small, medium size or big events.

 

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