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With costs on the rise, managing an event budget for association events has become more challenging than ever.
But just because association event budgets are tighter these days, doesn’t mean the event needs to be basic. With the right event strategy, your team can build an event budget that is logistically practical and delivers value long after the event is over.
What Is an Association Event Budget, and Why Does It Require a Different Approach?
Association event budgets are strategic financial roadmaps detailing expenses and revenues for a membership event.
Events are a critical driver of non-dues revenue for associations, often accounting for a third or more of the annual budget. Understanding how to manage an event budget for an association event is, therefore, a critical aspect of mission success.
How Is an Association Event Budget Different From Other Event Budgets?
Association events share many cost areas with their for-profit counterparts, such as event space, food service, speakers, marketing, technology, staffing, on-site materials, and signage.
But unlike for-profit events, association events are mission-driven and, as such, have a strong focus on education and member engagement before profits.
Of course, revenue generation is also vital, so the event budget must align with the association’s financial goals.
How Do You Build an Association Event Budget From Scratch?
Association event budgeting from scratch first requires a clear understanding of the event’s financial goals. All fixed and variable expenses must be identified, as well as potential revenue sources.
It’s critical to set clear financial goals from the outset; as you build your association event budget, you can gauge whether your expected revenue is sufficient and where to adjust.
What Revenue Sources Should an Association Account For?
Typical revenue sources fall into the following categories:
- Ticket sales
- Premium/VIP experiences, receptions, etc.
- Virtual event access fees
- Educational programs
- Sponsorships
- Grants
- Fundraising from the membership
- Advertising
- Commissions for affiliate sign-ups
- Booth fees
- Merchandise sales
- Post-event content monetization
What your association chooses to pursue should be based on your team’s capacity to execute, but a little creative thinking can add tremendous value.
What Are the Most Common Cost Categories To Include?
Association event expenses typically fall into these categories:
- Facility rental. You must also account for setup and teardown labor, cleaning, parking, and insurance.
- Food and beverage. Expect fees of up to 25% on top of wages and product costs to cover taxes and gratuities.
- Technology. Audiovisual production requires cameras, PA systems, microphones, screens, projectors, lighting, rigging, and more. Wi-Fi is also essential, as are the costs of livestreaming platforms, technicians, and running virtual events.
- Marketing and promotion. Website development, mobile apps, email marketing, social media ads, print advertising, signage, badges and lanyards, agendas, etc.
- Staffing. Administration and operations staff, related travel expenses, hotels, and meals (don’t forget your volunteers).
- Freight/shipping for exhibit materials.
- Software costs for check-in kiosks, badge printers, and interfaces.
Don’t overlook hidden costs! Setting aside at least 10% - 25% of your total budget for payment processing, union labor costs, service fees, and inflation is suggested.
How Do You Track and Control Costs During the Planning Process?
Strategic association event budgeting requires a dynamic, detailed line-item document. Use previous years’ budgets as a guide and historical comparison, and to identify areas at risk of overspending.
Here are a few tips to guide the budget planning process:
- Use technology to categorize expenses and variable costs.
- Negotiate contracts in advance; compare quotes to get the best deals. Consider multi-year contracts for major expenses to secure better rates.
- Update budgets with actual figures as soon as invoices arrive.
- Reallocate funds from under-budget categories to cover contingencies.
- Monitor revenue generation in real time to ensure your budget is on track.
Most associations leverage a strong volunteer force; don’t overlook what your members are willing to do to help. Putting out a call may provide you with dedicated support at no cost.
When Should You Use Event Management Software Instead of a Spreadsheet?
When your association events scale or become complex, or when planning requires real-time or remote collaboration, it’s time to switch to a software solution.
High volumes of manual work are time-consuming and error-prone, and you’re likely working with a small team whose time might be better served focusing on member engagement.
How Do You Measure Budget Success After the Event?
Your post-event budget review will help you compare actual costs with the budget you created. Success is quantified by calculating the net profit, comparing cost variances (actual vs. budgeted), and determining your ROI and cost per attendee.
Was your contingency fund sufficient? Did your revenue sources deliver on expectations?
Look at every category to identify discrepancies and highlight performance. Use these metrics to inform next year’s budget.
What Makes Association Event Budgeting Easier With the Right Tools?
Eventscribe, Cadmium’s event management system, is an all-in-one event management solution with everything you need to create your budget and manage the full event cycle. From setting financial goals to tracking spending and proving ROI to leadership, Eventscribe understands the unique concerns of associations and nonprofits and is customizable to your needs.
The right tools make budgeting easier and more predictable, so your team can focus on creating memorable experiences.
