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.

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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.

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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

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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.

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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.

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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.

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3. Thementorisprovidinghalfhisfeein-kind.Investmentfromyourpartnersevidencestheircommitmenttoyourcareerdevelopmentandstrengthenstheapplication.

4. Assessorsconsiderifappropriatebudgetingforairfares,accommodation,groundtransportandperdayallowanceshasbeenallocated.Inthisbudget,theairfareallowanceforthreereturnflightsfromCairnswouldnotbeadequate.

5. BudgetingforadditionalpromotionalmaterialforBigsoundcouldhavebeenincluded.6. Thebudgetrequests50%oftheoverallprojectcosts.Thiswouldbeconsideredareasonablerequest.Individualsfund

willnotsupport100%ofprojectcosts.