Introduction to event

2.7 FINANCES AND THE BUDGET
It is essential that all team members are awareness of what has to be spent financially 
for planning and managing event. For a public event, the financial matters become 
more complex the larger it i, involving studies on financial feasibility based on 
various financial techniques .Regardless of the complexity level, the financial plans 
need to match the objectives of the event. 
The expenditure should be estimated through an identification and assessment 
process. The variable and fixed costs need to be identified in order to make clear 
where the point of break-even is reachable. In terms of events, fixed costs involve 
the hiring of venue, staffing, marketing and insurance for instance, while variable 
costs are e.g. catering, entertainment and accommodation. At the completion of the 
total costs it is important that all fixed, variable, and other possible costs are 
calculated and included, in order to give a genuine picture of the cost side of the 
budget. Budget items to consider: 
 Staff time
 Marketing expenses (design fees, printing, postage, etc.) 

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Event Management HM-402 
Uttarakhand Open University 
26 
 Transportation
 Venue
 Guest accommodations (if applicable) 
 Food and beverage 
 Entertainment and recreation
 Audiovisual equipment and production cost 
 Security (Police) etc. 
 Special needs (interpreters, etc.) 
 Taxes and gratuities, service charges, etc.
 Contingency fund for unanticipated, last minute expenses 
Income can be generated in several ways, such as admission fees and activities that 
generate revenue like games, brochures, food and sales stalls, merchandise, transport 
services and car parks, and selling rights for broadcasting for instance. Moreover, 
events organised by governmental agencies may depend on a budgeted part of tax 
money, and funding for events can be sought at governmental agencies or official 
bodies, or sponsors. Public agencies and private foundations can make a grant to 
support a cause. Local governments may give grants to events that advance 
community spirit and unity.