CHAPTER 7: Financing and budgeting an
event
➜ Different aspects in financing an event
Outsourcing
Budgeting
Finances
Income
Purchasing & procurement
Fundraising
Sponsoring
Outsourcing
Budgeting
An event budget is your friend, not your foe, for it can often provide reasoning behind
decisions or changes made during the planning proces, which is advantageous when
reporting to the event stakeholders. From reporting to evaluating success, your budget is a
useful tool to reflect upon and inform future events. (Selina Arnali)
CHAPTER 7: Financing and budgeting an event 1
, List all income and expenditure
Set the break-even moment/point
Make a clear distinction between variable and invariable vosts
saveguard a good balance between all different main costs
Purchasing and procurement
outsourcing resources is also know as purchasing or procurement
= acquisition of services, equipement or other goods for monetary payment
= acquisition of goods or services in any way, which could include leasing, temporary hire, borrowing or contra-
deals (swap)
Public sector in the European Union : financial restrictions + transparancy (Tender from the moment the
expenditure is higher than a certain amount (depends on the type of public sector organisation)
Fundraising
When having little or no budget = Beg, borrow or charity shop
Sponsorship
different angles
→ definition
Sponsorship is a reciprocal agreement in which one party (the sponsor) provides a financially quantifiable
contribution, while the other party (the sponsored) offers communication opportunities, either directly or
indirectly arising from their professional activities (such as sports or the arts). This agreement is intended to
be mutually beneficial for both parties. (J. Fransman)
The financial or material support of a leisure activity existing separately from the sponsor’s primary
commercial aim but from which the supporting company will gain corporate or marketing benefits. (David
Young)
→ Most important element
focus on profitable situation for all parties involved (win-winsituation)
A communication activity
→ Functions of sponsorship
broad:
marketing instrument
sales instrument
independant part in the communication mix
PR instrument
CHAPTER 7: Financing and budgeting an event 2
event
➜ Different aspects in financing an event
Outsourcing
Budgeting
Finances
Income
Purchasing & procurement
Fundraising
Sponsoring
Outsourcing
Budgeting
An event budget is your friend, not your foe, for it can often provide reasoning behind
decisions or changes made during the planning proces, which is advantageous when
reporting to the event stakeholders. From reporting to evaluating success, your budget is a
useful tool to reflect upon and inform future events. (Selina Arnali)
CHAPTER 7: Financing and budgeting an event 1
, List all income and expenditure
Set the break-even moment/point
Make a clear distinction between variable and invariable vosts
saveguard a good balance between all different main costs
Purchasing and procurement
outsourcing resources is also know as purchasing or procurement
= acquisition of services, equipement or other goods for monetary payment
= acquisition of goods or services in any way, which could include leasing, temporary hire, borrowing or contra-
deals (swap)
Public sector in the European Union : financial restrictions + transparancy (Tender from the moment the
expenditure is higher than a certain amount (depends on the type of public sector organisation)
Fundraising
When having little or no budget = Beg, borrow or charity shop
Sponsorship
different angles
→ definition
Sponsorship is a reciprocal agreement in which one party (the sponsor) provides a financially quantifiable
contribution, while the other party (the sponsored) offers communication opportunities, either directly or
indirectly arising from their professional activities (such as sports or the arts). This agreement is intended to
be mutually beneficial for both parties. (J. Fransman)
The financial or material support of a leisure activity existing separately from the sponsor’s primary
commercial aim but from which the supporting company will gain corporate or marketing benefits. (David
Young)
→ Most important element
focus on profitable situation for all parties involved (win-winsituation)
A communication activity
→ Functions of sponsorship
broad:
marketing instrument
sales instrument
independant part in the communication mix
PR instrument
CHAPTER 7: Financing and budgeting an event 2
