Is your not-for-profit organization getting ready to host a special event? Do you have everything you need to ensure that your event goes off without a hitch? Many not-for-profit organizations hold special events throughout the year to raise support and awareness for a particular cause. Whether it’s a charity dinner to raise funds or a yearly celebration to foster community among your supporters, not-for-profit events require extensive forethought and preparation. Not-for-profits need to have a plan in place far in advance and need to develop – and stick to – what is called an event budget.
An event budget is designed to help not-for-profits better plan and prepare for their upcoming event. Most not-for-profit organizations have a set amount of money they can spend on special events; however, if there is no plan in place, many organizations run the risk of coming out over budget. Developing an event budget is about more than coming out under budget; it’s about working smarter by planning ahead and saving time, money, and resources.
While similar to the general not-for-profit budgeting, event budgeting requires organizations to follow a specific process and format. The following steps in the event budgeting process will help you develop an effective event budget and help ensure a successful event.
Step One: Review Your Past Events
Before you even begin developing your budget for an upcoming event, you need to review your past event budgets (if you have them). Examine your budgeting processes for past events and determine what worked and what didn’t. Make sure you adjust your current budgeting process to encompass what you’ve learned. You will also need to review historic trends in your industry (or similar nonprofit organizations) and past events to gain a realistic expectation for your upcoming event. While you cannot predict everything, reviewing your past events will give you a basic understanding of what you need to plan for your upcoming event.
Step Two: Anticipate Your Expenses
In order to create an effective event budget, you need to have a general idea of your expenses. Write down your projected expenses, including venue costs, advertising and promotion, event program design and printing, catering, guest speaker/performer costs (including travel), equipment, and staff and administration costs. Make sure to leave room for unplanned or last-minute expenses as events always seem to incur surprises.
Step Three: Factor in Projected Income from the Event into Your Budget
More often than not, nonprofits include the anticipated income for an event in the event budget. Because many not-for-profits do not have the funds to pull off an event from start to finish, they have to rely on the income generated from the event to offset the expenses. Determine how much income you plan on receiving from the event, whether that be from ticket sales, sponsors, or merchandise sales, and how much income you plan on incorporating in your event budget.
Step Four: Create Your Working Budget
Now it’s time to create your working event budget. Include your anticipated expenses, as well as the funds you have to work with for the event. The actual budgeting process is lengthy and requires the following:
- Determine “hot areas” that need more dollars or attention
- Review your event attendance goals and “fall out” trends to determine your projected attendance
- Negotiate and streamline supplier contracts to minimize event costs
- Develop a system to track your expenses daily
- Prepare your team for unplanned or surprise expenses and train them to determine worthiness
- Keep an eye on on-site expenses and cut costs where you can (i.e. venue, event staffing, food, audio/visual, etc.)
Step Five: Have a Post-Event Meeting
Meet with your event staff following the event and review the budget and planning process. What areas could you have improved upon? Did you come out under or over budget? Review all supplier bills and dispute any unapproved expenses directly after the event. Once you have thoroughly reviewed all pending expenses, pay your suppliers on-time. Compare your event budget to the event actuals and discuss any discrepancies among your team. While you cannot go back and change time, you can ensure that you are sufficiently prepared for your next event.