Budgets Key considerations for budget preparation STEP 1: Cost the project first to determine expenses • Timeframes – determine the length of project, critical work periods (this will help you estimate fees for participating artists and other personnel) and completion dates. • Fees and living away from home allowances (per-diems) – make sure you are aware of arts industry awards when you are negotiating with artists and that you are budgeting appropriate rates. − Performing Arts Awards − Visual arts recommended fees − Literature rates • Travel – the more you can plan in advance the better rates you will get for air travel. For road travel, budget to reimburse participants for petrol and other related costs. Shop around for vehicle hire (truck/car). Travel is a competitive market and can be a source of in-kind support through discounts offered or a full sponsorship opportunity. • Accommodation – check for competitive rates (you may be able to negotiate a discount and this can be recognised as an in-kind contribution). • Insurance – you may need to arrange public liability insurance. Some peak bodies offer advice and discounted insurance cover through their membership benefits, e.g. Ausdance Queensland, Flying Arts Alliance, National Association for the Visual Arts (NAVA), Arts Law and Insurance in the Arts. • Venue or rehearsal room hire – any discounts offered or contributions made will not only save you money, it will also provide evidence that your project is supported by others. • Marketing – be sure you have a plan to maximise the outcomes of your project and that you have allocated sufficient funds to cover contracted personnel, online and printed marketing materials. Strategic use of digital marketing can be cost effective. Most projects have a limited number of public outcomes; you need to be sure you are reaching the widest possible audience. • Administration, evaluation and reporting – (this is often overlooked or under-resourced in many project applications) – make sure someone in your team is responsible for managing all administrative aspects of the project: − Financial: payments to artists, hire agreements, travel, insurances. − Evaluation: ensure an evaluation plan is in place from project commencement (audience surveys and data capture, blogs, media). − Reporting: understand the funding body’s outcome report requirements. Thorough and timely reporting at the conclusion of any project will enhance your reputation as a reliable applicant, worthy of further investment.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
BudgetsKeyconsiderationsforbudgetpreparationSTEP1:Costtheprojectfirsttodetermineexpenses
• Timeframes–determinethelengthofproject,criticalworkperiods(thiswillhelpyouestimatefeesforparticipatingartistsandotherpersonnel)andcompletiondates.
• Feesandlivingawayfromhomeallowances(per-diems)–makesureyouareawareofartsindustryawardswhenyouarenegotiatingwithartistsandthatyouarebudgetingappropriaterates.
−PerformingArtsAwards
−Visualartsrecommendedfees
−Literaturerates
• Travel–themoreyoucanplaninadvancethebetterratesyouwillgetforairtravel.Forroadtravel,budgettoreimburseparticipantsforpetrolandotherrelatedcosts.Shoparoundforvehiclehire(truck/car).Travelisacompetitivemarketandcanbeasourceofin-kindsupportthroughdiscountsofferedorafullsponsorshipopportunity.
• Accommodation–checkforcompetitiverates(youmaybeabletonegotiateadiscountandthiscanberecognisedasanin-kindcontribution).
• Insurance–youmayneedtoarrangepublicliabilityinsurance.Somepeakbodiesofferadviceanddiscountedinsurancecoverthroughtheirmembershipbenefits,e.g.AusdanceQueensland,FlyingArtsAlliance,NationalAssociationfortheVisualArts(NAVA),ArtsLawandInsuranceintheArts.
• Venueorrehearsalroomhire–anydiscountsofferedorcontributionsmadewillnotonlysaveyoumoney,itwillalsoprovideevidencethatyourprojectissupportedbyothers.
• Marketing–besureyouhaveaplantomaximisetheoutcomesofyourprojectandthatyouhaveallocatedsufficientfundstocovercontractedpersonnel,onlineandprintedmarketingmaterials.Strategicuseofdigitalmarketingcanbecosteffective.Mostprojectshavealimitednumberofpublicoutcomes;youneedtobesureyouarereachingthewidestpossibleaudience.
• Administration,evaluationandreporting–(thisisoftenoverlookedorunder-resourcedinmanyprojectapplications)–makesuresomeoneinyourteamisresponsibleformanagingalladministrativeaspectsoftheproject:
−Financial:paymentstoartists,hireagreements,travel,insurances.
−Evaluation:ensureanevaluationplanisinplacefromprojectcommencement(audiencesurveysanddatacapture,blogs,media).
−Reporting:understandthefundingbody’soutcomereportrequirements.Thoroughandtimelyreportingattheconclusionofanyprojectwillenhanceyourreputationasareliableapplicant,worthyoffurtherinvestment.
STEP2:Nowyouknowhowmuchmoneyyouneedtodelivertheproject,constructtheincomesideofthebudget
• Boxoffice/participantfees–estimatesshouldreflectthenatureoftheproject,yourtargetmarket(theircapacitytopay),venuecapacityandanyriskssuchasweatherimpactingonoutdoorevents.Itisbesttoestimateconservatively.Shortfallswillpotentiallyputyourprojectintodeficitandmaybeviewednegativelybyyourfundingbody.
• Otherfunding–planahead.Beawareoffundingprogramsavailabletoyou(andclosingdates)fromlocal,stateandfederalagencies.Confirmedfundingfromotherprogramswillmakeyourapplicationmorecompetitive.
• Sponsorship–again,planahead.Ittakestimetoresearchandidentifysuitablesponsorsorpartners.Allocateappropriatetimeandresourcestodevelopyourproposalsothatitalignswiththeprioritiesofapotentialpartner.Evenmodestcashand/orin-kindcontributionsprovideevidencethatothersseevalueinwhatyouaredoing,tellsassessorsyouareorganisedandtheprojectisviable.
• Crowdfundingandotherfundraising–haveaplan.Tobesuccessfulinthiscompetitiveenvironmentbeclearaboutyouruniquesellingpoint.
Themorediverse(andrealistic)yourincomesources,themorecompetitiveyouwillbe.Mostgrantprogramswillnotprovide100%ofprojectexpenses.Dependingonthenatureoftheproject,keepingyourfundingrequestbelow50%ofthetotalcostcouldbeanadvantage.
STEP3:Thedifferencebetweenincomeandexpenditureistheamountoffundingyoushouldseekfromthefunder
Atthispointyoucanassesswhetherthisprojectisviable.Ifoneofyourfundingsourcesisnotforthcoming,wouldyoubeabletoproceed?Doyouhaveacontingencyplan?
Examplebudget:annualperformanceprogram–PineappleQuartetContext:
• Thisisanapplicationfromamusicensemblefortheirannualperformanceprogram.• Overthepast10yearsthequartethasbuiltareputationfordeliveringqualitymusicprogramsandaudiencedemandis
expandingnationally.• ThecompanyhasreceivedprogramfundingfromArtsQldfor5years.• Theannualprogramincludesnationalandregionaltouring,andaneducationandcommunityengagementprogram.• Thefourmusiciansaresupportedbyonefull-timeandtwopart-timeadministrationstaff.• Marketingservicesarecontractedasrequired.• Theensemblesharesanofficewithanotherartsorganisationtominimiseadministrationcosts.
Whatassessorsmayobserveinthisbudget:1. Thereisagoodmixofearnedincomewhichrepresentsapproximately25%oftotalincome.2. TheapplicationprovidesevidenceofconfirmedsupportfrombothStateandFederaltouringprogramswhichsuggests
theorganisationiswellregardedforqualityofprogramsandevidentdemand.3. Thereisroomforimprovementinsponsorshipincome.Witharegulartouringprogram,itmightbepossibletogrow
cashorin-kindcontributionsfromairlines,vehiclerentalandfreightcompanies.4. Fundingrequestedis12%oftotalincome,whichisreasonableforanannualprogram.5. Thelargestexpenditureitemissalariesandfees,whichisstandardformostorganisations.Inthiscaseitrepresents62%
oftotalexpenditure.6. Marketinganddocumentationisapproximately5%oftotalexpenditure.Thisallocationmaybeadequatebut
investmentinmarketingisimportantandshouldnotbeunder-resourced,ideallymorethan5%ofprojectcosts.Participatingvenuescanprovideadditionalmarketingsupport.
7. Administrationandoverheadsareminimisedduetotheopportunityofsharingspacewithanotherorganisation.
Pleasenotethatth
isbu
dgetisanexam
pleon
ly.#indicatesfun
dinghasbeenconfirm
ed.
Examplebudget:performanceproject–Jump-UpyouthContext:
• Thisisacircus-basedmusic/theatreperformanceprojectinvolving25youngpeoplefromeachoftworegionalcommunities–bothmorethan200kilometresfromBrisbane.
• TheBrisbane-basedprojectleaderswillschedulecreativedevelopmentperiodswitheachyouthgroupovera5monthperiod.
• TherewillbeperformanceoutcomesdeliveredineachregionalcentreandatamajorvenueinBrisbane—atotalof3performances.
• TheapplicantclaimsimportantpartnershipshavebeenestablishedwithvenuesineachregionalcentreandinBrisbane.
Whatassessorsmayobserveinthisbudget:1. Isthebox-officeoverlyambitiouswith$15,000projectedover3performances?Assessorswillexamineestimatesand
trytounderstandyourassumptions.Forexample,assume$6,000inBrisbaneand$4,500ineachregionalcentre.Withanestimatedticketpriceof$15(tobeaffordableforayouthmarket),youwouldneedafullpayingaudienceof300ineachregionalcommunityand400inBrisbane.Isthisrealisticwithonlyoneperformanceineachlocation?Justifyyourestimateswithevidenceofdemand.
2. Itishelpfultoknowwhatfundingprogramsyouhaveappliedtoanddateofoutcome.ConfirmationdateforLocalGovernmentandAustraliaCouncilfundingshouldbeprovidedinapplication
3. Itisgoodtoseesomediversificationofincomethroughmerchandising(seeearnedincomeItem1),donations,crowdfundingandanin-kindcontributiontowardsequipmenthire.Thistypeofprojectcouldbeattractivetophilanthropicorganisations–theapplicationwouldbestrengthenediftherewasfundingfromthissector.
4. If,astheapplicationasserts,importantvenuepartnershipshavebeenestablished,whyistherenofinancialcontribution–cashorin-kind?(e.g.rehearsalspace,discountedtechniciancosts,promotionalsupportetc.).Investmentfromyourpartnersprovidesevidenceoftheircommitmentandstrengthensyourapplication.
5. Insalaries,fees&allowances,no-onehasbeenidentifiedtomanageoradministertheproject.
Pleasenotethatth
isbu
dgetisanexam
pleon
ly.#indicatesfun
dinghasbeenconfirm
ed.
6. Goodtosee“costofmerchandise”,thisissometimesoverlooked.7. Foraprojectwith3locations,notravelcostshavebeenincluded.8. Foraprojectwithanelementofrisk,noinsurancehasbeenincluded.
Examplebudget:regionalgalleryexhibitionproject–BotanicaContext:
• This8weekexhibitionisacollectionofhistoricalandcontemporaryillustrationsofplantsandflowers.• Itfeaturesworksbylocal,nationalandinternationalartists.• SomeimportanthistoricalworkswillbeonloanfromgalleriesandlibrariesacrossAustraliaandinternationally.Thisisa
majorcoupforaregionalgalleryandwillbeanimportantcomponentoftheirmarketingcampaign.• Theprojecthasastrongcommunityengagementstrategythroughpublicartclassesandtalksledbyparticipating
artists,aswellasacomprehensiveeducationprogram.
Whatassessorsmayobserveinthisbudget:1. Giventhelocationoftheexhibitionisinamid-sizeregionalcentre,earnedincomelevelsaremodestbutrealistic.2. Theprojectiswellsupportedthroughagoodmixofincome,includingown(in-kind)contribution,othergovernment
funding,sponsorship(cashandin-kind)andearnedfees.3. Theprojectiswellplannedwithevidenceofcashandin-kindsponsorship(confirmationlettersattachedtoapplication).4. Fundingrequestedismodestatapproximately20%oftotalprojectcosts.5. Artistfeesandexhibitiondevelopmentcostsareadequateforanexhibitionofthisscale.6. Offeringpublicartclasses,talksandeducationkitsdemonstratessoundcommunity/audienceengagementstrategies
whichaddvaluetoallstakeholders’investmentsintheexhibition.7. Themarketingbudgetallocatedtothisexhibitiondoesnotreflectthescaleoftheproject.Insufficientfunds(lessthan
4%ofprojectcosts)havebeenallocatedtocoverpromotionoftheexhibitionandothercommunityengagement
Pleasenotethatth
isbu
dgetisanexam
pleon
ly.#indicatesfun
dinghasbeenconfirm
ed.
initiatives.Withlimitedtimeforthepublictoengagewithyourproject,astrategicandwell-resourcedmarketingstrategywillimproveyourchancesofasuccessfuloutcomeandshowyourpartnersyouhavetheskillsandcapacitytodeliversuccessfulprojects.
Examplebudget:careertransitionopportunityContext:
• Danhastrainedincircussincehewasatschool.• HehasperformedprofessionallywithvariouscircusgroupsinQldandinotherstatesforthepast10years.• Dannowlivesinaregionalcentreandisworkingwithayouthcircusgroup-Springboard,teachingandperforming.• ThegrouphasbeeninvitedtoperformatayouthartsfestivalinIreland.• Thegroup’sdirectorhasaskedDantotourwiththemasaperformerandmentorfortheyoungperformers.• Danseesthisasagreatopportunitytomeetwithotherdirectorsandteachersofyoungpeoples’performancegroups
whichwillassistintransitioninghiscareerfromperformertomentor/director.
Whatassessorsmayobserveinthisbudget:1. Whileitisacknowledgedthatyouthperformancegroupsareoftennotwellfunded,Springboard’scontributiontoDan’s
engagementwouldseeminadequate.Dan’sowncontributionisgreaterthantheorganisationengaginghim.2. Goodtoseeeffortshavebeenmadewithfundraisingandwithsupportfromlocalgovernment;manylocalcouncil’s
offercommunityfundingtowardsvariousoutcomes.3. Dan’sfeeandperdiemsreflectappropriateawardratesforhis10-dayengagementwiththecompany.4. IdeallythecompanyengagingDanshouldcoverallfees,travelandaccommodationcosts,howeveritisacknowledged
thatthisisnotaprofessionalorwell-fundedorganisationandthisopportunityisprovidingDanwithanimportantcareertransitioningexperiencethereforeinclusionofanartistfeecouldbeconsideredappropriate.
Pleasenotethatth
isbu
dgetisanexam
pleon
ly.#indicatesfun
dinghasbeenconfirm
ed.
Examplebudget:internationalresidencyContext:• Kategraduatedin2010withaBachelorofFineArt(Hons)fromQldCollegeofArt.• Sheworkswithsoft/fabricbasedsculpturesandhashadseveralsoloexhibitionsingalleriesinQldandNSW.• Katehasalsobeencommissionedbyadancecompanytomakesculpturalpiecesforsets.• Sheiskeentodiversifyherpracticeandexplorewidermarketopportunitiesforherwork.• ShehasbeenacceptedintotheMuseumofArtofDesign,NY,ArtistStudioprogram.TheArtistStudiosupportsthe
developmentoforiginalworksandfostersdialoguebetweenartists,designersandthepublic.• ThisinternationalopportunityataprestigiousartmuseumwillexposeKatetoabroadrangeofartistsandexpandher
networkswithinthevisualarts,designandperformingartscommunities.
Whatassessorsmayobserveinthisbudget:1. Throughherowncontribution,fundingfromtheAMPTomorrowFundandmodestcashandin-kindsponsorships,Kate
iscontributingapproximately59%ofprojectcostswhichwouldbeviewedfavourably.2. Kate’sbudgetestimatesforfees&allowancesanddirectcostsappeartobesound(NewYorkisexpensiveand
exchangeratesneedtobeallowedfor).3. Foraprojectofthisnatureandscale,Kateshouldfactorindocumentationcosts–forherownpersonalportfolioand
recordsaswellassupportingherreportingrequirementsforhersponsorsandfundingbody.Documentationcaninclude:onlineprofiledevelopment,videorecordingetc.
Pleasenotethatth
isbu
dgetisanexam
pleon
ly.#indicatesfun
dinghasbeenconfirm
ed.
4. Goodtofactorinalldirectcostsofinternationalprojects.Theseexpensesaresometimesoverlooked.
Examplebudget:mentoringandskilldevelopmentopportunityContext:• Cairns-basedBenhasbeenworkingasamusicianforthreeyears.HehasidentifiedaninternationallyrenownedSydney-
basedsinger-songwriterwhohasagreedtomentorhiminvariousaspectsofsongwriting,recordingandnetworkingwithinthemusicindustryandmakingkeyintroductionstomusicindustryprofessionals.
• BenhasscheduledthreesessionswithhismentorinvariouslocationsacrosstheeastcoastofAustraliaoverasixmonthperiod.Oneofthesesessionsisplannedat301StudiosinSydney.
• BenplanstoattendtheannualBigsoundconferencewithhismentortonetworkandfurtherdevelophiscontactbasewithinthemusicindustry.ThethirdmentoringsessionwillbeheldwhilebothBenandhismentorareinBrisbane.
• ThementorhasofferedtoprovideaccommodationforBenonhissecondtwo-daytriptoSydney.
Whatassessorsmayobserveinthisbudget:1. Itisimportanttoconsiderotherfundingsourceswhenapplyingforagrant.Outlineinthebudgetthegrantprograms
youhaveappliedtoandifthefundingisconfirmed.Assessorswillconsiderthisfavourablyasexternalinvestmentinyourprojectsupportsitssustainabilityandshowsthatothersseethevalueincontributingtoyourcareerdevelopment.
2. Assessorswillvaluetheapplicant’ssuccessinraisingfundsfromavarietyofsourcesincludingcrowdfundingandin-kindprintingcosts.Itdemonstratesthereisanaudienceandcommunitysupportfortheartist/projectandthatyouareorganisedandcommittedtothesuccessoftheprofessionaldevelopmentopportunity.
Pleasenotethatth
isbu
dgetisanexam
pleon
ly.#indicatesfun
dinghasbeenconfirm
ed.
3. Thementorisprovidinghalfhisfeein-kind.Investmentfromyourpartnersevidencestheircommitmenttoyourcareerdevelopmentandstrengthenstheapplication.
4. Assessorsconsiderifappropriatebudgetingforairfares,accommodation,groundtransportandperdayallowanceshasbeenallocated.Inthisbudget,theairfareallowanceforthreereturnflightsfromCairnswouldnotbeadequate.
5. BudgetingforadditionalpromotionalmaterialforBigsoundcouldhavebeenincluded.6. Thebudgetrequests50%oftheoverallprojectcosts.Thiswouldbeconsideredareasonablerequest.Individualsfund
willnotsupport100%ofprojectcosts.
Related Documents
