Funding

How much do I need?
Get realistic quotes and use these to prepare a budget. Match your budget guidelines to the objectives you have set for your festival/event.

The key is to draw up a draft budget first to help you to highlight where the funding gap is and how big it is. This will be the amount you need to find from external funding and/or sponsorship.

When you draft the budget, try to consider all costs and sources of funding available. Always allow for a contingency sum and do not underestimate the costs of insurance!

Remember:

  • Budgeting is always difficult, particularly the first time an event is held
  • Budgeting is vital - it ensures that anticipated income and expenditure are realistic and achievable. Give time to preparing the budget
  • It is important for events to try and become sustainable – so keeping a little of the profit back each year can go towards new activities or equipment for next year’s event.

Sources of Funding
By now you will have identified any financial shortfall in your budget and it is time to look at possible funding sources to fill these gaps. There are several different sources of funding available and you need to decide which is the most appropriate for your event.

Written documentation about the event will be required and a clear understanding of why it is important for sponsors to be involved. Public sector organizations will also wish to see a link between your event and their activities and government organizations must justify their support as an appropriate use of tax payers money. Grant aid schemes may be the easiest way to tap into public sector sponsorship.

Save time by contacting funding organisations before making a formal application. Each funding body has its own approval process and timeframe. Many of these bodies will provide guidance on how to apply, criteria on how they judge applications and an application form. Most are happy to talk to applicants and give advice and direction.

Possible sources of funding:

  • Existing or own funds
  • Income (e.g. admission fees, advertising, trade stands, donations)
  • Sponsorship (private sector)
  • Sponsorship (public sector)
  • Grants (Trusts and Foundations)
  • Statutory Bodies such as Arts Council England, North East and Sports England

Tips for writing funding proposals
Each group will have their preferred application process, but some things are common to all of them. Writing a good application is all about following basic ground rules:

  • Make it as short as possible
  • Keep it simple and straightforward
  • Make sure it is personalised and tailored to each funding body
  • Make sure it has a clear layout
  • Be aware of language, do not use jargon!
  • Ensure it is clean and presentable
  • Check it and check it again!

Have the following information to hand when you complete the application forms:

  • Budgets
  • Marketing and PR plan
  • Sponsorship plan
  • Information on the status of your organisation
  • Bank details
  • Whether or not you are VAT-registered
  • Make sure all funding applications are handled in a professional way. A co-opted treasurer with a financial/accountancy background could give vital advice here.

Remember:
If you successfully obtain funding from a public source, there will be conditions attached to it. Make sure you understand and comply with these conditions.

Sponsorship means that your business partner will need to receive a commercial return for their investment in you, and they will expect value for money.