February 27, 2015 | Read Time: 2 minutes
Understanding the following terms will give you a head start as you plan and carry out a formal fundraising event.
Gross revenue: Total amount of money brought in through ticket sales, corporate or individual sponsorships, and revenue raised during the event through auctions, games, raffles, or donations.
Direct costs: All event-related expenses, from renting the space to hiring the band and caterer to paying for post-party cleanup. Advertising the gala in the local media, printing and mailing invitations, and paying an event-planning professional are other examples of direct costs. Direct costs can be offset by soliciting in-kind donations from merchants and service providers, or through sponsorships from local companies and individual donors.
Indirect costs: Staff time dedicated to the event, including the manpower diverted from other organizational activities to plan and run a gala.
Net revenue: Gross revenue minus direct costs.
Venue: Where the event is held. Site rental is a major gala expense, but making a smart choice in venue can save money and seriously amp up an event’s impact by raising its “wow” factor.
Vendors: Companies and individuals that provide services for the the event, such as caterers.
Budget: A list of all expected expenses for an event, broken down into broad categories and then into detailed subcategories. For example, a large category such as “food and drink” would include related line items such as caterer fees, linen and glassware rental, and centerpieces for the dinner tables. A sample gala planning budget, supplied by New York Cares, can be found here.
Timeline: A document that lays out all the activities associated with the event, from start to finish, with a deadline for each task. Experts advise that planning for a gala should start about one year in advance. See a sample event timeline.
Event bible: A detailed, minute-by-minute schedule of the event itself, from the first vendor’s arrival until the last person turns out the lights. It should contain a complete list of on-site contact names and phone numbers, as well as a roster of vendors with bulleted breakouts of exactly what each is providing and when it’s supposed to be in place.
