INTRODUCTION

TO
EVENTS
MANAGEMENT
Lecture 6: Financial
Management and Events

Finance for Events

Financial

control is vital as it:

Allows us to judge likely success

Allows us to judge the level of planning
Provides a total cost picture
Is useful when looking for additional funding

The Event Budget

Establish
economic
environment

Establish
budget
guidelines

Identify and
estimate cost
areas and
revenue sources

Evaluate draft
budget and
prepare control
ratios

Draft budget for

approval

Costs and Revenue

Costs:

Fixed
Variable
Also, think about
cash flow

Revenue

Ticket sales (scaling)

Sponsorship
(leverage)
In kind support
Merchandising
Grants
Fundraising
Broadcast rights
Special features

There are many different ways of raising money, but your

responsibilities remain the same whether you receive public,
private, or self-generated funds:
Audiences/Participants
Artists
Colleagues
Funders
Tax Payers
Company & Charity Law

You have a responsibility to serve with diligence, care, and

honesty

The Cause
Nothing is as important in fundraising as the clear
understanding of all concerned as to why your
project/organisation needs money.
Dedication
Fundraising doesn't have to be hard work, but it still needs the
dedication of the organising committee and helpers.
Setting Targets
How much money is needed? How long have we got? Who
shall we target to get support?
Accounting
Immaculate records must be maintained which reflect not
only cash received, but also donations made and their source.

Sponsorship
o

An investment in an activity in return for access to the

exploitable commercial potential associated with this
activity.

When companies support an event like

o sport event, concert, or charity
o ex. Olympics

Financially or donate product/service

Sponsorship (Cont.)
o
o
o

Mute non-verbal medium

Messages are created using visuals, vocals, and
context
Sponsorship may be less effective in gaining
attention

Sponsorship (Cont.)
Objectives:
o Generation of awareness
o Promotion of positive message about the product
or company
4 Types of SPONSORSHIP:
o Event-related sponsorship
o Broadcast/Program sponsorship
o Cause-related sponsorship
o Ambush Marketing

4 Types of Sponsorship
Best Known Type
Event-related sponsorship
o i.e. sponsoring soccer competition or activity
o Increase awareness or improve image

Broadcast/Program sponsorship
o A brand can sponsor a sports program, weather
forecast or a soap
o Billboarding: mentioning the name of a sponsor
o Product placement: sponsor's product being used
during the program to show to the audience
o i.e. series/ James Bond
o Increase brand salience (via liking and attention to)

4 Types of Sponsorship (Cont.)

Cause-related sponsorship The oldest form
o A combination of PR, Sales Promo, and corporate
philanthropy (charity), based on profit-motivated
giving to good causes
o Not just Charity, but Charity + integration of company's
communication strategy
Transaction-based sponsorship
o (Cause-related marketing or point-of-purchase politics)

A type of sponsorship in which the company invests

a pre-specified amount of money in a good cause
every time a consumer buys one of the company's
product.

i.e. a cause program to stop childhood hunger

4 Types of Sponsorship (Cont.)

Ambush Marketing

Promotional stunts used at events by companies

that are not official sponsors.

Typically occurs when one big brand is trying to

dilute the presence of a rival that is sponsoring an
event, thus diminishing the return on the official
sponsor's investment.

For example,

Nike ran its own soccer competition against the

World Cup whose official sponsor was Adidas.

Because of the publicity, many consumers

assumed Nike was the official World cup
sponsor.

WHERE TO START?

Your first step is to have a clear idea of your project. Answer these
simple questions:
Why do you want to organise this event?
What do you want to achieve?
Who will your project benefit? Do the beneficiaries support the
project?
How will the project meet their needs? When will it take place?
How will your target the beneficiaries?
How much is it likely to cost?
How will you monitor & evaluate the project?

Write a short description of your project and jot down any questions you
can think of (i.e. how will we display the work?, how will we publicise the
event?). This will help you to direct your research.

WHO MIGHT FUND YOUR

PROJECT?

There are many different organisations that distribute

funds for arts activities.

Public Bodies [e.g. Arts Council England, DCMS, National

Lottery]
Charitable Trusts [e.g. Elephant Trust, Henry Moore
Foundation]
Businesses
[e.g. Bloomberg, Deutsche Bank, Becks Bier]

However, none of them will give away money very easily.

Applying for funding is a lengthy process, and there is no

point applying to the first funder you find. Unless your
project directly matches their criteria, you are going to be
wasting your time.

Also, look at publicity from similar projects to

see who supported them,

visit your library to find out about local charities

that support the arts.

You may find it useful to start your own

database - write notes on each of the funding
organisations you come across.

Even if they prove not to be relevant now, the

details may well be useful for future projects.

RESEARCH YOUR
POTENTIAL FUNDERS

Different funding organisations have different priorities and they do not like to wade
through applications from people who have written to them at random.
It is very important to make sure that you are only applying to organisations that are
interested in your field of work.
Look at each funders website, or contact them to ask if they can send you their
funding guidelines.
If they don't have guidelines write to or ring them to ask:
Can they send you details of their current funding programme?
When are their deadlines for submitting applications?
Once submitted, how long does it take for grants to be approved and
allocated?
Do they have an annual report or list of previous grant recipients they can send
you?
Once you have the funder's guidelines ask yourself:
Does your project really fit the criteria?
Are the grants they give are of an appropriate size?
Have they funded similar projects before?
If you think you have found a perfect match then it is time to start your application.

WRITING THE APPLICATION

The most important skill when writing an

application is to be clear.

The application must give the message that

you are thorough, well organised and have a
clear idea of what you want to do.

You will probably need to write a few drafts of

your application - so ensure that you have
enough time!

RULES IN WRITING THE

APPLICATION

Type the proposal in simple language. Do not use vague

sentences, be direct and sure; avoid sub-clauses; avoid jargon; do
not assume that the reader will understand industry terms; and
don't use acronyms.
If English is your second language, ask somebody else to proof
read and check for grammatical errors.
If English is your first language, still ask someone to check it.
Spelling mistakes, typos and missing detract from the content of
your application.
If you find it difficult to express clearly what it is you want to do, it
might mean that you haven't thought it through sufficiently.
Perhaps you need to do more research or thoroughly rethink the
aims of the project.

Photocopy the application form before you start writing - and only use the
final form when you have your final draft ready. It's embarrassing to have to
ask for another form because you've made a silly mistake.
If you can, word-process your application.
Use lots of paragraphs and reduce the amount of punctuation.
A clear format makes the application much easier to read and understand.
Try not to babble, and edit the document for repetition and vagueness.
Make sure that the application is neat. Avoid scribbling out mistakes, coffee
stains, crumpling, etc.
Remember that the application will be photocopied and distributed. There is
probably a good reason why they particularly want you to use a certain
form, or provide a certain number of pages. Follow their instructions and
don't use coloured inks or fancy bindings unless specifically requested.
Now check it all again!

PROPOSAL STRUCTURE
Summary

of the project;
Introduction to your organisation;
A clear indication of the need for your project;
Detailed description of the activities;
Who will benefit and how;
Strategy for evaluation (making sure you learn from
your mistakes and successes);
An accurate budget;
A plan for future funding (unless you are proposing
a 'one off' project or event).

BUDGETS

A good budget is essential for a successful application.

The budget should show that you have carefully thought through all aspects of
your application and understand all the implicit costs. (For example, if you have
mentioned 'end of project celebration' in your proposal, you might want to include
costs for refreshments, invitations, posters, decorations, postage, cleaners, etc. in
your budget).

Visualising your project

One way to start understanding how a good budget works is to imagine it as a
picture of the entire project.
Make a list of what will happen in the project and note down in order all the items
you will need to buy and services you will use.
If there are parts of the project where you can't visualise what will happen - you
need to do some more research.
Once you have your list, get an accurate cost for each item/service - this may
mean sitting down with the Yellow Pages and phoning round for a while, or
trawling the internet and doing a load of emails, but it will help to ensure that your
budget is real and thus feasible.
Start filling in a Spreadsheet or Table and do the math.

EXPENDITURE

Organise your costs under headings for 'expenditure'.

Every project will have a different budget, but these are some generic
headings:

Overheads - such as paper, office costs, telephone bills, (probably no more than
10% of the total costs)
Fees for artists and/or yourself
Venue hire
Marketing and publicity
Materials and/or equipment hire
Transport
Refreshments
Evaluation
Contingency in case of unforeseen events (no more than 10% of total costs)

Group similar items together and round figures up to the nearest pound.
Remember to check that costs include VAT where appropriate (this is
17.5%).
Avoid the temptation to underestimate or overestimate your costs. Funders
are experienced at examining budgets and may assume that you are
either dishonest or incompetent if your figures are inaccurate.

INCOME

Many grant-givers look to see evidence of 'match funding'.

This is funding from other organisations which shows that you have the support of
others.
It also indicates to potential funders that they will be getting added value for their
money. If you have applied for money from another source but have not yet had an
answer, mark this as 'unconfirmed'.
Funders will also look for evidence of your own contribution, either in terms
of money, expertise, time, space or materials. It is an idea to calculate the
approximate costs of time donated (ensuring that you make it clear that this
is an 'in-kind' contribution) and show how you have arrived at your figures
(i.e. rates per hour, number of hours, etc.).
Local businesses may be contributing discounted or free goods - these count
as 'sponsorship in-kind'.
Finally
Your income and expenditure should add up to the same amount.
Do not ask for more money than the project will cost.
Finally, ensure you have added up the budget correctly.
Then check it again.

THE COVERING LETTER

You should send a covering letter (on headed paper if possible) with the
application.
You may want to include a short summary of the project in this letter,
introducing your organisation and the project.
The aim of this letter is to reiterate the message that you are thorough, well
organised, and have a very worthwhile proposal.
It is worth remembering, however, that in order to maintain equal opportunities,
some funding bodies will only submit the application form to their panel (without
the covering letter).
Once you have completed your proposal and covering letter you are ready to
compile all the information you need, including annual reports and accounts (if
requested).
If you are posting the application either send it by recorded delivery to ensure it
gets there in time, or telephone to check that it has been received.
Always ensure that you have kept a copy for yourself.

BUILDING
RELATIONSHIPS

Your relationship with a funder should not finish as

soon as you are awarded a grant.

Remember, in all your dealings with grant-givers,

that you may want to ask for their support again.

You will find it of great benefit if you have built up a

good relationship with them during, and following,
the project as well as at the time of application.

Your funder is now in partnership with you and will be

keen to see how the project progresses.

Here are some ideas that should keep funders happy to work with you again:

Let grant-givers know if there are going to be any major changes to the project as
this may affect the funding situation (you may wish to tell them of problems once
you have thought of viable solutions).
Thank them for their support.
Invite them to workshops or any events.
Send a letter or telephone to let them know how successful the project is - again,
thanks to their support.
Ensure that they are credited in all press and publicity.
Send favourable press cuttings along with evaluation and photographs of the
project. You may also want to include feedback from participants.
If funders ask for a report, ensure that you allocate some time to do this - you may
not want to think about the project again once it is finished, but your funders will be
interested in the results. Make sure your report is honest and mention the areas that
you have pinpointed for improvement.
Funders are keen to see that you have evaluated the project thoroughly and are
making good use of any failures, as well as successes

Don't ever lie to your funders - if you are caught out you will very likely jeopardize any
chance of future funding, and they could tell other people.

REMEMBER!!
You

may be doing many funding

applications at the same time.

It

is imperative that you work quickly and

efficiently.

Try

to be methodical and think about

ways of using the same texts and budgets
for different applications.

Keep

records of everything you do, and

create a methodical filing system.