Governments, at any level (Federal, State, Municipal), have reasons to provide funding to assist sport and recreation organisations. These reasons include:
Governments, therefore, have specific objectives in providing funding to sport organisations and knowledge of these objectives is extremely important when apply for a government grant.
Governments have a need to provide funding to sport in a way that maximises the value returned for the tax-payers money invested. This is a key fact that shapes the type of funding programs offered to sport organisations.
The following types of funding programs are typical of the ways in which governments try to maximise the return:
Governments provide funding to help construct, or improve, sport and recreation facilities. Public funding of sports facilities provides the greatest return on money invested. It is the general nature of sport facilities that, once created, they are long-lasting. Furthermore the development of facilities is the single biggest factor that increases participation in sport.
Funding is usually provided direct to clubs but there is often a requirement for the sport club to make a significant contribution with its own funds. The most common ratio of funding programs is: Government 75% Club 25% or Government 67% Club 33%.
The significant contribution required from the sport club offers a measure of financial safety to the government. A club needs to be in a relatively sound financial position before it can successfully bid for government funding.
In the case of major facilities that may have an impact on a regional, state or national level, different levels of government may contribute. For example, a regional sport facility may be funded by municipal and state governments, and the host club may not be required to contribute any funds.
Municipal governments, in particular, provide financial assistance directly to sport clubs for projects aimed at increasing participation or improving services. For example, these two objectives can be achieved by providing funds for:
Funding for the payment of salaries of coaches is much less common but does occur as this can have an impact on increasing participation.
A key objective of governments, in general, is to increase access to sport and recreation by people in "equity target groups". Such groups include:
Typically, government funding to sport organisations that develop programs, services and events for people in equity target groups is 100% i.e. the club does not have to contribute any funding itself.
Government funding for major events is achievable when the event has a capability to create a positive economic impact in the region or state as a result of large scale 'sport tourism'. The type of events that will be funded include:
Such events usually require many years of planning, including the event bid itself. Often expert Event Administrators are required and the salary cost is significant. Furthermore, the bid process often involves overseas travel.
The scale of funding involved and the complexity of the event tend to take this type of funding beyond the reach of sport clubs. It is more the providence
Government funding is sometimes provided to National or State Sport Organisations for the following: