Event Operations Manual
Software for Club Treasurers

Financing the Event

The table below provides common sources of event revenue. Some differences exist between organisations that run events for profit motives and those that are not-for-profit oriented.

Categories of Event Income

Government Grants

Government grants to assist with the running of events are not easy to obtain. To be successful, applicant organisations need to demonstrate that the event has strategic regional importance. For example it may increase overseas tourists to the region.

Sponsorship

Despite the prevalence of event sponsorship in the sport and recreation marketplace is increasing, many organisations have great difficulty in achieving a significant amount of sponsorship. Competition between sport and recreation organisations for sponsorship is intense. Organisations need to be very professional in their approach to sponsorship and to be able to offer sponsoring companies outstanding value in promotional services. Event Directors need to exercise some realism and caution in relying to heavily on sponsorship.

Merchandising Sales

The term merchandising applies to the sale of a range of products that may be strongly identified with the event or the organisation hosting the event. A common example of merchandising is the production and sale of T-shirts, polo shirts, caps and other forms of clothing that are screen printed or embroidered with a design or trademark of the event. Participants tend to purchase such articles for their commemorative value. Other typical forms of merchandise include glassware, pens, dish cloths, drink bottles and badges. Merchandising may be a form of income suitable for events that have larger numbers of either players or participants.

Participant Fees

The charging of fees to participate in the event is perhaps the most common form of event revenue.

Sport and recreation events are a service provided and it is reasonable to suggest therefore that all basic costs of the event should be covered by participant fees. These "basics" include the hire of the venue, provision of appropriate equipment and the administration of the event.

Sponsorship and government funding, if it can be achieved, allows the organisation of the event to go beyond the basics. The event budget should be set so that if sponsorship and/or government funding is not forthcoming the event does not have to be canceled.

Raffles

It is common to find that recreation organisations employ "on-the-day" fundraising strategies. The most common example is the raffle and a small amount of income can be achieved this way. Whereas it is difficult to achieve cash sponsorships, it is easier to obtain goods from sponsors which can be raffled.

Event Directors should identify and research legislation in their own state/nation that pertains to raffles and other similar forms of fundraising. Raffles are often regulated by governments because of the potential for fraud and misrepresentation.

Spectator Fees

In some cases, events are sufficiently popular and entertaining to attract paying spectators. However it can be difficult to obtain money from spectators in circumstances where there no restriction of access(for example an outdoor event with no perimeter fence). If this is the case it may be better to make off-street parking for a fee.

 

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