What steps are needed to create a feasible budget proposal for sponsors?

1 Research potential sponsors

The first step is to research potential sponsors who might be interested in supporting your theatrical production. You can look for sponsors who have a similar target audience, mission, or values as your production, or who have a history of funding arts and culture projects. You can also use online databases, directories, or networks to find sponsors who match your criteria. Once you have a list of potential sponsors, you should learn as much as you can about their goals, preferences, and requirements for sponsorship.

2 Estimate your expenses

When estimating your expenses for the theatrical production, you need to consider all the costs associated with creating, rehearsing, and performing your show. This includes venue rental and fees, equipment and materials, marketing and promotion, cast and crew salaries and benefits, travel and transportation, insurance and taxes, and a contingency fund. You should use reliable figures based on research, quotes, or past experience. Additionally, it is important to categorize your expenses into fixed and variable costs, as well as prioritize the essential and optional ones.

3 Calculate your income

The third step is to calculate your income for the theatrical production. You should estimate the amount of money you can generate from different sources, such as ticket sales, merchandise sales, donations and grants, in-kind contributions, and other revenue streams. It's important to use realistic and conservative projections based on market research, audience analysis, or past performance. Additionally, you should factor in any fees, commissions, or taxes that could reduce your income.

4 Determine your sponsorship levels

The fourth step in the process is to determine your sponsorship levels and benefits. You need to decide how much money you are asking for from each sponsor, and what kind of recognition and exposure they will receive in return. You can create different sponsorship levels based on the amount of money or value of the contribution, such as Platinum, Gold, Silver, Bronze, and Partner. Additionally, you should define the benefits for each sponsorship level, such as logo placement on posters, flyers, or programs; acknowledgment on social media, website, or press releases; complimentary tickets or VIP seats; invitation to backstage tours or meet-and-greet sessions; opportunity to display banners or booths at the venue; and access to audience data or feedback. It is important to make sure that your sponsorship levels and benefits are attractive, relevant, and proportional to the sponsor's investment.

5 Write your budget proposal

The final step is to write your budget proposal for sponsors. It is important to present your budget proposal in a clear, concise, and professional manner, using a format and language that suits your sponsor's expectations. Your proposal should include a cover letter that introduces yourself, your production, and your sponsorship request; an executive summary that highlights the main points and benefits of the proposal; a project overview that describes the vision, goals, and objectives of the production; a budget summary that shows expenses, income, and sponsorship levels; a sponsorship benefits section that details the recognition and exposure you will provide to each sponsor; and a call to action that invites the sponsor to contact you for further discussion or agreement. Additionally, you should attach any supporting documents such as a production schedule showing timeline and milestones, a marketing plan outlining how you will promote your production and reach your audience, a sample contract outlining the terms of the agreement, and a portfolio showcasing previous work or awards. Before sending it to potential sponsors, it is important to proofread and edit your budget proposal. Furthermore, you should follow up with them afterwards to thank them for their consideration.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?