The necessity of creating a budget for your fundraising even cannot be stressed enough. It is imperative to know how much everything is going to cost so that you will know what to charge and so make a profit. Not only that, but records of all monies received must be kept properly so that no one can be accused of doing the wrong thing with the funds. Once any hint of wrongdoing taints your cause, your sponsors will drop you like a hot cake.
So how do you create a budget? You must get quotes for all your costs. Every single thing that is going to cost any money must be written down. It may be that you can find a cheaper alternative or get something donated that you thought you’d have to pay for, but it all has to be down there in black and white.
You may need to pay for entertainment, catering, speakers, sound equipment, venue, advertising, gifts, decorations and other things that you will think of, depending on the kind of event you are arranging. You also need to write down all your income such as ticket sales, sponsorship, donations and the like. Add them all up and subtract the expenses from the income. If there is not much profit, then you may need to comb through it to see where you can cut costs.
Remember that local people may be willing to donate their expertise or equipment for free to help you cut costs. Even the cost of the venue could be heavily discounted, if not free. If you don’t ask, you’ll never know, so don’t be shy. Also look at alternatives. If you were going for a full band, try a DJ with sound equipment instead. Change the menu to something a little simpler.
Even if your event is something as simple as a car wash, you still need to have a budget. It will be a much simpler budget of course, but you still need to account for the cleaning products used, don’t you?
If your event is a really big and complicated one, it may pay you to get special software to help you create the budget. While you’re at it, get one of those volunteers who has accountancy skills to do it for you. Or if none of them have, go to your local accountant and ask if he would be willing to donate his time to do it. What a good idea!
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