Things to consider when determining how much you will need to spend or make on the event
Your budget should contain the following items:
Estimate the income and expenses
Create a budget worksheet that contains a detailed list of income and expense categories
Income categories include:
Sponsorship
Ticket sales
Registration fees
In-kind donations
Fundraising activities (raffles, auctions)
Expense categories include:
Meeting room or venue rental fees
Food & beverage costs
Entertainment
Transportation (air, ground)
Speaker fees and other content costs
Decorations
Printing and signage
Staff and labor costs
Audio visual and other equipment rental costs
Shipping and freight
Include all known expenses in the budget worksheet
Add anything you think maybe a possible expense
Determine expense categories that could benefit from a competitive bid or negotiated pricing
Determine fixed/variable costs and the break-even point
Fixed costs (FC) – expenses you pay regardless of the attendance
Facility rental
AV costs
Entertainment
Variable costs (VC) – expenses that vary according to number of attendees
Food & beverage costs
Decorations
Printing of the event program
Break-even point: How many tickets will you need to sell to cover:
All your expenses
Make whatever profit you need to make
Try this formula: FC/(registration fee or ticket price –VC) = Number of attendees
Determine if there is a financial component to the event
Determine if your event will make a profit, break-even, or operate at a loss. If you are planning a corporate event where the corporation is paying for everything, you may operate at a loss.
Determine how you will pay for the event
For-profit organizations
Organization usually pays for everything
Nonprofit organizations
Attendees may pay registration fee or ticket price
Sponsorships from businesses
Many sponsors maybe more interested in your audience than in your event
Most sponsors choose to partner with an event that has shared values
Donations from individuals
Do you currently have a donor base and sponsor base that will contribute as much as needed to raise the asking amount?
How will you pay for the event?
Additional Resources
- How to Build an Event Budget, Planningpod
- EventMB; The Event Budget Calculator: The Only Tool You Need To Run Successful Events
- Meetings and Event Planning Playbook by Debi Schol & Susan Losurdo © 2018 Barrel Maker Publishing; p. 26-27; p. 82-84: sample budget
- EventMB; Event Sponsorship Guide: Quick Tips To Get More Sponsors
-
Previous Post
Step 6: Create Event Timelines
-
Next Post
Step 8: Determine Staffing Needs
Related Posts
November 20, 2023
Step 12: Develop a Contingency Plan – In Case of an Emergency
So, you’ve thought of everything—but just in case, have a back-up plan that addresses what…
November 20, 2023
Step 11: Develop a Pre-Event, On-Site and Post-Event Management Plan
Finally, all the planning is done and it’s time to put into practice what you…
November 3, 2023
Step 10: Develop a Marketing Plan
Having a plan to promote the event is crucial and the plan should include both…
November 2, 2023
Step 9: The Master Program Planning Worksheet
The program planning worksheet serves as an action plan for the team.
