BUDGETING

Budgeting is a crucial element

of any event proposal because
it sets the financial framework
for the entire event planning
process.
Here's why budgeting is so
important:
 1 : Defines Scope
ST

and Feasibility
A clear budget helps determine what is
realistically achievable within the financial
constraints of the event. It ensures that the
event can be executed without exceeding
available resources, which is essential for
maintaining financial stability.
 FEASIBILITY AND
PLANNING
Determines Prioritization:
the Event's
Viability:
By estimating the costs The budget forces planners to
associated with each prioritize essential activities
element of the event, the and cut out unnecessary
budget helps assess expenses, improving overall
whether the event is event quality and focus.
feasible within the available
financial resources.
 2 : Helps Prioritize
ND

Spending
A well-constructed budget enables organizers
to allocate funds to the most critical aspects of
the event. It helps in making informed
decisions on where to spend more (e.g.,
venue, catering) and where to cut costs if
needed (e.g., decorations).
 FINANCIAL
CONTROL
Prevents Ensures
Overspendi Adequate
A
ng:
well-planned budget sets a
Resource
It ensures that funds are allocated
financial limit for the event,
Allocation
effectively to different aspects of
helping to prevent overspending the event, like venue, catering,
by tracking all expenses and entertainment, marketing, etc.
aligning them with available
resources.
 3 : Ensures
RD

Financial
Accountability
A detailed budget promotes transparency and
accountability. It provides a clear breakdown
of expenses, which is important for
stakeholders, sponsors, or clients who are
investing in the event. It also helps track
spending during and after the event to avoid
overspending.
4 : Guides Decision-
TH

Making
Every aspect of the event proposal, from the
venue to entertainment and marketing, is
influenced by the available budget. It serves
as a decision-making tool for determining
which elements are feasible and which need to
be revised or eliminated.
 DECISION-
Informs MAKING Supports
Stakehold Negotiations:
A detailed er:
budget provides With a clear budget, planners can
stakeholders, such as clients, negotiate better deals with
sponsors, or event partners, vendors, sponsors, and service
with a clear understanding of providers by knowing exactly how
the financial aspects of the much they can afford to spend.
event. This transparency
facilitates decision-making
regarding the event's approval
and funding.
 5 : Prepares for
TH

Contingencies
A good budget includes a contingency fund for
unexpected costs. This foresight helps avoid
last-minute financial strain or compromises in
quality, as it prepares for potential changes in
costs or unforeseen expenses.
 Risk
Management
Identifies Buffer for
Potential Unexpected
Shortfalls:
A budget helps identify gaps
Costs:
Including a contingency fund
between projected costs in the budget helps address
and available funding early, any unforeseen expenses,
allowing for contingency reducing the risk of financial
planning to mitigate difficulties during the event.
financial risks.
 6 : Ensures (ROI)
TH

Return on Investment
For corporate or profit-driven events, budgeting is
essential for determining the event’s ROI. Knowing
the costs upfront helps evaluate whether the event
will achieve its financial goals, whether through
ticket sales, sponsorships, or other means.
 Return on Investment
(ROI)
Tracks Post-Event
Profitability: Analysis:
For events designed to After the event, the budget
generate revenue, the serves as a benchmark for
budget helps measure evaluating the financial
profitability by comparing success of the event, helping
costs against anticipated to assess whether the event
income from ticket sales, was cost-effective and met its
sponsorships, or financial objectives.
merchandise.
 7 : Provides a
TH

Clear Vision to
the
Stakeholders
A detailed budget enhances the credibility of
event proposal, as it provides
stakeholders with a clear financial outlook. It
demonstrates the planner’s professionalism
and helps secure approvals, funding, or
sponsorship.
 Ensures
Accountability
Clear Financial Monitoring
Responsibility: Progress:
Throughout the event
Budgeting assigns financial
planning and execution
responsibility to different
stages, the budget acts as a
departments or individuals,
tool to monitor spending
ensuring accountability for
progress, ensuring that the
each expense and reducing
event stays within the
the likelihood of
approved financial
mismanagement.
framework.
Facilitates Sponsorship and
Attracts
Funding
Justifies Funding
Sponsors: Needs:
If additional funding is
A clear, detailed budget
required, a well-planned
demonstrates
budget makes it easier to
professionalism and financial
justify and request financial
responsibility, making it
support from donors,
easier to attract sponsors or
investors, or management.
external investors.
Enhances the Proposal’s
Credibility
Professional Demonstrates
Presentation: Competence:
Including a budget in the event A well-prepared budget
proposal enhances its signals the competence of the
credibility and professionalism. event planners, increasing
It shows that the event has trust among stakeholders.
been thoroughly thought
through and planned.
In summary, a well-thought-out budget in

an event proposal is not just about

managing money but about strategically

shaping the entire event, ensuring its

success, and building confidence with

stakeholders.
EXAMP
LE!
Problem-Solving
Activity: Budget
and Resource
Allocation for a
Wedding Event
Objective:
The objective of this activity is to learn how to create
and manage a realistic budget for a wedding event
within a defined budget, prioritize expenses, and
allocate resources effectively.
SCENARIO:
You are organizing a wedding event for 150 guests in Manila
with a total budget of ₱800,000. The wedding includes the
ceremony, reception, catering, entertainment, decorations,
photography, and other essential items. The goal is to allocate
resources effectively while balancing the couple’s preferences,
ensuring that their most important aspects of the wedding are
met within the budget.
Steps to Solve the Problem:
STEP 1: Define Priorities for the Wedding
The first step is to work with the couple to determine their top
priorities for the wedding. Key categories to consider are:
1. Venue: Ceremony and reception space.
2. Catering: Food and beverages for guests.
3. Decorations & Flowers: For ceremony and reception.
4. Entertainment: Band/DJ, live performances, or other
entertainment.
5. Photography & Videography: To capture the event.
6. Attire: Bride and groom’s clothing.
7. Logistics & Miscellaneous: Invitations, giveaways, transportation,
Steps to Solve the Problem:
Step 2: Allocate an Initial Budget
Next, allocate a percentage of the ₱800,000 budget to each category.
Based on typical wedding planning, you can start with these
percentages:
• Venue: 25% (₱200,000)
• Catering: 30% (₱240,000)
• Decorations & Flowers: 15% (₱120,000)
• Entertainment: 10% (₱80,000)
• Photography & Videography: 10% (₱80,000)
• Attire: 5% (₱40,000)
• Logistics & Miscellaneous: 5% (₱40,000)
Step 3: Estimate Costs
Now, estimate or research actual costs for each category to make sure they
fit within your budget. Below are sample costs for a wedding in the
Philippines:
1. Venue:
• Wedding ceremony venue: ₱50,000
• Reception venue: ₱120,000
• Rentals (chairs, tables, AV equipment): ₱30,000
• Total Venue Cost: ₱200,000
2. Catering:
• Buffet meal: ₱1,500 per person x 150 guests = ₱225,000
• Drinks: ₱100 per person x 150 guests = ₱15,000
• Total Catering Cost: ₱240,000
3. DECORATIONS & FLOWERS:
• Floral arrangements: ₱50,000
• Ceremony decorations: ₱30,000
• Reception decorations: ₱40,000
• Total Decorations Cost: ₱120,000
4. ENTERTAINMENT:
• Band or DJ: ₱50,000
• Emcee: ₱30,000
• Total Entertainment Cost: ₱80,000
5. PHOTOGRAPHY & VIDEOGRAPHY:
• Photographer: ₱50,000
• Videographer: ₱30,000
• Total Photography & Videography Cost: ₱80,000
6. ATTIRE:
• Wedding dress: ₱30,000
• Groom’s suit: ₱10,000
• Total Attire Cost: ₱40,000

7. Logistics & Miscellaneous:

• Invitations: ₱7,500
• Wedding favors: ₱30,000
• Transportation: ₱2,500
• Total Logistics Cost: ₱40,000
Step 4 : Identify Overages and Make Adjustments
Once you have the estimated costs, total them up to see if they fit within
the ₱800,000 budget. If the total cost exceeds the budget, you’ll need to
make adjustments.
For example:
• Reduce the catering costs by choosing a less expensive menu or
reducing the number of guests.
• opt for a smaller or simpler venue to reduce venue costs.
• Simplify the decorations or floral arrangements to save on décor
expenses.
Step 5: Create a Contingency Fund
It is important to set aside a contingency fund of 5-10% of the total
budget for unforeseen expenses. This ensures you are prepared for any
last-minute changes or additional costs, such as:
• Extra guest seating.
• Last-minute changes in decor.
• Additional transportation costs.
With a 5% contingency, you’ll need to set aside ₱40,000 from your total
budget.
MIND
MAP
ACTIVI
TY
TIME!
Problem-Solving
Activity: Budget
and Resource
Allocation for a
Debut Event
Objective: Allocate resources for a debut event for
180 guests in Manila, within a total budget of
₱500,000. The key categories include venue,
catering, entertainment, decorations,
photography, and other essential elements. The
goal is to maximize value while respecting the
debutant's priorities.
SCENARIO:
Debutant: Francheska
Number of Guests: 180
Event Style: Elegant formal debut with a reception,
catering, entertainment, and other key elements.
Date: April 2025
Location: Davao City, Philippines
Total Budget: ₱500,000
 CATEGORY ESTIMATED COST CALCULATION/JUSTIFICATION
Venue & Reception
Catering
Decorations
Photography & Videography

Entertainment
Debutante’s Attire
Invitations & Stationery
Cake
Hair & Makeup
Event Planner
Favors & Gifts
Miscellaneous/Contingency
TOTAL 500,000.00
 REFLECTION
1.
QUESTIONS:
What were the most challenging areas to allocate resources for?

2. Which category did you find most diffi cult to cut costs from, and why?

3. How did you ensure the debutant’s vision for the event was respected

while staying within the budget?

4. If the debutant had an additional ₱100,000 in the budget, how would

you allocate it to improve the event?

KEY CONSIDERATIONS FOR BUDGET ALLOCATION:
• VENUE & RECEPTION: A venue that provides space for a large
number of guests with a festive atmosphere.
• CATERING: High-quality food and beverages for all 180 guests.
• ENTERTAINMENT: Engaging activities, including a DJ or live
performances, to keep the event lively.
• DECORATIONS: Stylish and vibrant decor that fits the debutante’s
chosen theme.
• PHOTOGRAPHY & VIDEOGRAPHY: Professional services to capture
the special moments.
• CONTINGENCY: A fund set aside for any unexpected expenses or last-
minute adjustments.
THANK
YOU
VERY
MUCH!
TIMELINE: KEY DATES AND
PHASES
01 02 03
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BUDGET:
FINANCIAL
BREAKDOWN
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MIND
MAP
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