EVENT BUDGETS (& FAQ)

A well-planned budget helps turn your event idea into a realistic plan. An event budget provides a clear overview of your expected income and expenditure, helping you understand the financial viability of your activity and whether it is likely to make a profit, loss, or break even.  By building a strong budget ahead, you can make confident decisions about what your Group can deliver while managing financial risk. 

This guide covers the key principles of creating an event budget, getting your budget approved, and managing changes to your plans.

Event budgeting principles: 

When preparing an event budget:

• All events with an expenditure of £500 or over, or where tickets are being sold, must have an approved event budget.
• Event budgets should aim to make a small profit, or break even.
• Budget using realistic income and attendance figures.
• Prioritise essential costs first.
• Ensure expenditure reflects the scale of the event.
• Build in a small contingency where appropriate.
• Review previous events to improve future budgets.

An accurate budget helps both your committee and the Union understand whether an event is financially sustainable.

Fixed and Variable Funds:

Before you start building your budget, it's important to understand the different types of income and expenditure you may need to include. 

Variable costs are often preferable because they give you more flexibility. If fewer people attend your event or you receive less income than expected, your costs can reduce as well. Fixed costs must usually be paid regardless of attendance or income, increasing the financial risk of running at a loss.

Example: If your venue cost is a fixed price of £500, you pay £500 whether 20 or 200 people attend. However, if your venue cost is per head head, fewer attendees is reflected in lower costs and reduces the risk of overspending.

Fixed income: Is money you know you will receive, where amount is unlikely to change. 

Example: Your Group has a signed sponsorship agreement where £500 has been committed to the activity.

Variable income: Is an income value that that can change depending on circumstances. 

Example: Ticket sales where the amount received depends on how many people buy tickets to attend your activity.

Fixed expenditure: Is a cost you know in advance and is unlikely to change. 

Example: Your venue hire is a flat fee of £1,000 for the evening - the amount of attendees or money spent at the venue by attendees does not affect the price. 

Variable expenditure: Is a cost that can increase or decrease.

Example: The amount spent hotel rooms -  here the total cost depends on the number of attendees because you are paying for a bed per person.

Where do I submit my event budget?

On eActivities, navigate to Finance > Budgets > Event Budgets > New Submission.

How long does it take for an event budget to be approved?

Each person in the approval chain may take up to 10 working days to review your budget. Please allow plenty of time for the approval process and be aware that your budget may be returned with feedback at any stage, which could extend the overall timeline. 

Who approves our event budget?

We've heard your feedback about different elements of your activity being reviewed by different members of staff and have implemented some changes for the upcoming academic year.

From 2026/27, the same Union staff member will review both your event proposal and your event budget. This means feedback will be better coordinated, timelines will be more closely aligned, and your budget will be reviewed with the wider context of your event in mind.

Our Activities Coordinator (Finance) will continue to review all payment requests in collaboration with the Finance Team, ensuring that all expenditure requests remain in line with your event budget.  

Event budget requests are approved based on their value:

If your group does not belong to a Management Group, requests above £500 will be reviewed directly by the Activities Team.

What happens if we spend more than our event budget allows for?

We understand that event costs can fluctuate and that unexpected expenses sometimes arise. If you think you're likely to exceed your approved budget, please get in touch with the Activities Team as soon as possible so we can discuss your options before you commit to the additional spend.

If you incur costs that were not included in your approved budget and you haven't contacted us in advance, we cannot guarantee that expenditure requests to cover the costs will be approved. Claims or invoices for unapproved expenditure may be rejected if sufficient funding is not available.

Can I sign a contract with an external venue?

No. If your event requires a contract with an external venue, this must be reviewed and signed by the authorised Union signatory. Students and Groups are not authorised to sign contracts on behalf of the Union.

Do I need to budget separately for each night of a multi-day event?

No. If you are planning an event that runs over multiple consecutive nights, you should budget for the event as a whole rather than creating separate budgets for each individual night. This gives a more accurate view of the overall income, expenditure, and financial position of the event.

What if my event needs me to spend money before I receive income?

It is common for events to temporarily put your Group into a negative financial position, as you may need to pay costs before receiving income from ticket sales, fundraising, or other sources.

If you have budgeted realistically, you should be able to recover these costs and deliver your event at break even or with a surplus, and so your accounts may run into a short term, negative financial position.

Can we run an event at a loss?

If your Group has sufficient funds, it may be acceptable to run an event at a loss in some circumstances, such as when the activity benefits a large portion of your members, or the impact of the activity can be justified against the cost. However, you must consider the impact this will have on your Group’s finances and your ability to deliver your core activities - group funds should not be used for events that could prevent your Group from carrying out its core activity. 

If you plan to run an event at a loss, you must explain why in the notes section of your event budget form and be prepared to discuss this with those approving your budget. 

Any final decisions relating to the approvals of loss-making events will be made by the Activities Team in consultation with your Deputy President (Activities).

What should I do if my event is not going to plan or is likely to exceed the approved budget? 

If your event is facing unexpected challenges, particularly if you have already made financial commitments, contact the Activities Team as soon as possible so we can discuss your options and provide support.

Still have questions? Check out the rest of our knowledge base articles or  submit a ticket to the Activities Team.