Public events do more than fill your community calendar. They're where hometown pride meets economic opportunity. A downtown festival? It's not just funnel cakes and face paint—it’s tourism revenue, vendor income, and civic goodwill wrapped in a weekend.

But for many of you—Finance Directors, Fiscal Officers, Treasurers, Auditors, and City Managers—these events can feel like a budgetary black hole. Sure, the fireworks show was a hit... but was it a smart investment? Was it compliant? Did it deliver a real return? And what exactly did it cost after police, permits, and port-a-potties?

So let’s flip the script (insert turntable record scratch sound).

We're all about turning public events into strategic initiatives. We’ll dive into best practices that go beyond the basics. Because you already do the basics. Instead, we’re talking:

• Proactive financial planning

• Smart fund allocation (yes, even with tight budgets)

• Risk management that won’t give you a headache

• And how to quantify the full ROI—financial and social

When you apply the same rigor to event planning that you do to your annual budget, you build a legacy. One that’s fiscally sound, transparently managed, and citizen-supported.

The Real Economic (and Social) Power Behind the Event

Let’s talk numbers.

Public events are much more than line items or weekend distractions. They're strategic investments with ripple effects that can shape your local economy, enrich your community culture, and even boost your reputation as a place people want to live, visit, and invest in.

But if you're only tracking what you spend, you're missing the bigger picture.

Sure, it's easy (and necessary) to track the upfront expenses (permits, police, porta-johns, etc.). But stopping there is like judging a concert by the soundcheck alone.

To truly manage events like a pro, you need to quantify their total value. That means both the hard financial numbers and the soft (but very real) social impact. Because when you can measure the full return—economic, social, and even cultural—you’re in a stronger position to:

• Justify your budget to council or taxpayers

• Win grants or sponsorships

• Choose which events deserve repeat funding

• And (most importantly) prove your department’s strategic value

You can't manage what you can't measure, right?

So let's break it down into five key ways to measure an event’s real-world financial impact. 

1. Direct Spending: This is the low-hanging fruit. Hotel stays, restaurant meals, gas, souvenirs, event tickets. Every dollar spent by attendees injects cash straight into your local economy and helps you understand attendee behavior (and spending power).

2. Indirect Spending: A boost in hotel stays means more business for linen suppliers. A surge in local catering creates demand for food distributors. These ripple effects support your broader business ecosystem and deepen the event's value.

3. Job Creation: Events create jobs. Some are temporary (ushers, security, vendors). Some stick around. Especially in hospitality, retail, and event logistics. Events can create workforce development and household income growth.

4. Tax Revenue: More spending = more taxable activity. Events can lift local tax revenue through sales tax, hotel occupancy tax, and business income tax. Those numbers matter when you’re balancing city budgets or defending your department’s allocation.

5. Return on Investment (ROI): Finally, the big one. Financial ROI compares the cost of the event with the value it generated (revenue, sponsorship, visitor spending, even goodwill). It’s your north star for deciding whether to expand, repeat, or retire an event.

And if you're still wondering whether these events really make a difference—consider this: In 2022, nonprofit arts and culture events across the U.S. generated $151.7 billion in economic activity. That’s not a typo. And according to the same study by Florida Division of Arts & Culture, it supported 2.6 million jobs, drove $29.1 billion in tax revenue, and added $101 billion in personal income. (Wow!)

And let's zoom in on Florida for a second:

• The arts and cultural sector delivered $5.8 billion in economic activity

• $2.9 billion of that came from nonprofits

• This supported over 91,000 full-time jobs

• And added nearly $200 million to local government revenue

Now, imagine applying that kind of economic logic to your local community concert, film night, or fall festival. The numbers may be smaller, but the impact is still meaningful. And measurable.

But, let's step away from the finances for a moment.

Yes, economic metrics are critical. But if you only chase the dollars, you're missing half the value of your public events.

Festivals, parades, and community concerts shape how people feel about where they live. They create inclusion and reduce isolation. They make people want to participate in civic life. And that's a pretty big win.

Why? Since 2010, researchers have doubled down on quantifying these social impacts. They matter just as much (and sometimes more) than economic ones—especially if you’re trying to justify your next event to council or win over your citizens.

Here’s what happens to your community when you host public events:

1. Community Cohesion & Identity: Events give your community a chance to show off. Its culture, creativity, and shared spirit. From chili cook-offs to heritage festivals, these moments help people feel like they belong. And when people feel like they belong, they’re more likely to invest—financially and emotionally—in their community.

   Small events especially carry weight. A neighborhood block party might not rake in tourism dollars, but it can do wonders for reducing social isolation and building trust. This allows citizens to put down roots in your community and stay long-term.

2. Civic Engagement & Participation: Public events can pull in people who don’t typically engage in government meetings or community planning. Suddenly, they're volunteering, giving input, and showing up. That’s a win for democracy and for any local government trying to boost transparency and public trust. And events can be incredible networking opportunities for you to meet the public in a more casual environment and built community trust. 

3. Quality of Life & Well-being: Ever notice how happy people seem after a really great community event? Events support mental health, create joy, reduce stress, and foster pride in the community. (And no, there’s no line item in your budget for “general happiness,” but maybe there should be...) But again, this ties your citizens to the community and builds trust with them.

So, how do you quantify all that good stuff? Well, it's called Social Return on Investment (SROI).

This framework goes beyond dollars and cents to show the full value of an event. (Think of it as ROI’s more emotionally intelligent cousin.) It helps you measure the environmental, social, and community-level benefits alongside the financial ones.

It’s not as intimidating as it sounds. Here's the process:

Step 1: Define the Scope & Stakeholders

Who’s involved? Who benefits? Who might be impacted? This includes everyone from event planners and funders to attendees, local nonprofits, and residents. If they’re affected, they count.

Step 2: Map the Outcomes

List every outcome, positive and negative. Maybe the event increased volunteerism (which will save you money on some other initiatives). Maybe it brought in new business (which means more revenue for City Hall). Or maybe it created more road traffic (not every outcome is sunshine and roses).

Step 3: Gather the Evidence

Now you back up the outcomes. With surveys. Interviews. Attendance data. Business receipts. The stronger your evidence, the stronger your case to throw events in the future.

Step 4: Establish the Impact

Here’s where you ask, how much change was because of the event? What might have happened regardless? It’s separating correlation from causation to get your facts straight.

Step 5: Crunch the Numbers

Take the total value created (in social, economic, and environmental terms) and divide it by the event cost. Boom—you’ve got your SROI ratio. A number that actually reflects the full return.

Step 6: Report and Repeat

Share your results. Loudly. With council, with sponsors, with the community. And don’t stop there—embed this approach into future planning cycles to show growth over time.

Example

Let's say you host a free summer movie series in the park, aimed at increasing community engagement, supporting local vendors, and promoting public safety through positive evening activity.

You calculate the total investment from the city:

• Staff time (planning, security, setup): $6,000

• Equipment rental and licensing: $4,000

• Marketing and outreach: $1,000

• Total cost: $11,000

You track tangible and intangible benefits:

• 2,000 residents attended across 5 nights

• 400 survey responses indicated:

  • 85% felt more connected to their community (social cohesion)

  • 70% said they felt safer in the park at night now (perceived safety)

  • 25% said it encouraged them to attend more city-sponsored events

• Local vendors generated $7,500 in revenue

• Volunteer engagement: 100 hours donated (~$2,500 in value using Independent Sector’s value of volunteer time)

You monetize the outcomes (estimate the values):

• Improved community cohesion (assigned $10 per attendee = $20,000)

• Increased perceived safety (reduced burden on police patrols, est. value: $3,000)

• Long-term engagement in civic programs (future participation savings: $2,000)

• Economic benefit to vendors: $7,500

• Volunteer time value: $2,500

You calculate the SROI:

• SROI = Total Social Value ÷ Total Investment

• SROI = $35,000 ÷ $11,000 = 3.18

For every $1 the city invested in the movie series, $3.18 in social value was created.

That's powerful stuff! When you include social value, you’re telling a richer story. One that resonates with council, constituents, and investors alike. It reframes public events as vital investments in people, places, and trust.

And don’t forget—economic and social impacts aren’t two separate silos. They feed into each other. More spending can lead to more community programs, which improves quality of life. A stronger sense of community can drive up event attendance, which drives up revenue. It’s a cycle. You just have to prove it.

Strategic Budgeting for Events

If you want public events to deliver real value (and not just be line items to defend), you need budgeting practices that match the scale of your goals. Incrementalism (those 3% bumps) won’t cut it anymore.

The National League of Cities’ 2023 survey made this painfully clear: more than half of cities struggle to link their budgets to real-world outcomes. And residents are noticing. They’re frustrated by opaque, outdated processes that feel disconnected from community needs.

So if you're looking for a better way, you're definitely not alone. And you're not without options.

Two modern budgeting methods stand out for event planning: Zero-Based Budgeting (ZBB) and Activity-Based Costing (ABC). They take different approaches, but they share a common goal—aligning spending with value.

Zero-Based Budgeting: Start at Zero. Prove Every Dollar.

ZBB doesn’t care what you spent last year. It asks what we should spend this year. And more importantly, why?

Every program, service, and event has to justify its entire budget from scratch. No assumptions. No carryovers. Just strategy.

Why it works:

• Waste gets weeded out. Ineffective programs can’t hide under “but we’ve always funded this.”

• Funds shift to what’s working now, not what worked five years ago.

• Residents get a clear, transparent look at how their tax dollars are being used, down to the line item.

And since sales tax revenue is rocky and future forecasts unclear, this kind of discipline isn’t really optional anymore. It’s survival. And ZBB it really works, here's some examples:

• Los Altos, CA won awards for tying ZBB to community priorities.

• Georgia used ZBB to revamp entire departments and eliminate low-value programs.

• Houston, TX used it to cut unnecessary spending and bolster vital services like emergency response and public safety.

Example:

You're planning your first annual "Community Resilience Fair" to promote disaster preparedness, connect residents with local services, and build community trust. You want to educate and engage residents about emergency preparedness through hands-on activities, booths, and demonstrations.

Step 1: Define Objectives

• 1,000+ residents attend

• 20+ vendors and city departments participate

• Provide educational materials, food, and entertainment

• Host one keynote speaker and 3 workshops

Step 2: Build Budget from Zero

Step 3: Justify Each Line Item

Instead of saying “we spent $1,000 on promo last year,” the event team explains why $1,200 is needed this year:

• Targeting multiple zip codes with low engagement

• Using digital ads + mailers to reach at-risk populations

• Printing in English and Spanish

Step 4: Compare Options

If funding is tight, decision-makers can see exactly what’s essential vs. nice-to-have, like:

• Swapping keynote for a local speaker = save $1,500

• Eliminating t-shirts = save $600

• Reducing print materials = save $500

ZBB works because it forces your team to be intentional about every dollar (something that citizens care deeply about). 

Activity-Based Costing: Know What Events Really Cost

ZBB helps you choose what to fund. ABC helps you understand how much that choice actually costs by assigning costs based on activities, not just departments or line items.

Traditional budgets often spread indirect costs evenly across everything. But not all events are created equal. A massive downtown festival eats more resources than a farmers market in the park. But you wouldn't know that from most budgets.

ABC solves this. It traces indirect costs back to the activities that caused them.

For events, ABC means:

1. List all activities – Permits, traffic control, setup, teardown, marketing, waste management, etc.

2. Group their costs – Build "cost pools" for each cluster of related tasks.

3. Identify cost drivers – What triggers those costs? (Staff hours, equipment usage, road closures.)

4. Assign those costs to each event based on how much they actually use.

Why it matters:

• You get a true cost per event—not just an estimate.

• You can recover costs more fairly, charging based on impact, not averages.

• You stop subsidizing big-ticket events with general funds meant for everyone.

It’s equity in budgeting—and it strengthens your case for smarter event planning. Great budgeting doesn’t start in the finance department. It starts with a clear vision from city leadership.

Your public events should map back to community-wide strategic goals—economic vitality, inclusion, health, tourism, or quality of life. If they don’t, you’re not budgeting. You’re guessing. (And that's scary.)

This connection is often missing. But when it's done right, it makes your event-spending easier to justify and easier to defend. Suddenly, your summer concert series isn’t just “fun”. It’s a measurable driver of downtown revitalization or youth engagement.

And Parks & Rec can’t do this alone. Neither can Finance.

You need buy-in across departments, especially the ones that support events behind the scenes—public works, law enforcement, waste, economic development. Everyone needs to understand:

• What the event is trying to achieve

• How their work fits into that picture

• How the budget reflects those contributions

And they need to be at the table early. Not after the budget’s been drafted. When staff feel ownership, they collaborate more. You get fewer surprises, better alignment, and stronger support during implementation.

Example:

Let's say a department in your city is hosting a Disaster Preparedness Day—a one-day event with workshops, booths, and live demos. They want to know the true cost of the event, not just the budget. How much each major activity is costing them, including indirect costs like staff time.

Step 1: Identify Key Activities

These are the actual actions required to put on the event:

1. Event Planning & Coordination

2. Marketing & Outreach

3. Vendor & Speaker Management

4. Logistics Setup & Breakdown

5. Onsite Event Execution

6. Post-Event Survey & Reporting

Step 2: Assign Resource Costs to Activities

If 400 residents attend: $10,870 ÷ 400 = $27.18 per attendee

ABC is helpful because it shows which activities consume the most resources and helps justify requests with detailed insight. It also supports cost-efficiency decisions, like "Do we need paid EMS on-site?"

Pick one, but it's not magic...

When you show residents why you’re spending and how it connects to goals they care about, it’s easier to justify even bold investments in public events. Because transparent, strategic budgeting isn’t just about better numbers. It’s how you build public trust.

But here’s the catch: you can’t drop ZBB or ABC into your ERP system and expect magic. The NLC survey found two major blockers:

• Elected officials who lack budgeting knowledge

• Organizational capacity that's too stretched to implement changes

So if you're serious about reform, you have to start with training. Finance leaders, you should champion internal learning about budgeting mechanics, strategic outcomes, and communication. Otherwise, even the best efforts will fall flat.

Move beyond the "last year plus 3%" approach. Use ZBB to rethink spending from the ground up. Use ABC to track real costs with real clarity. And above all, tie every dollar to a bigger goal your community cares about.

Because when you build your budget around strategy (not inertia) you don’t just fund events. You fund progress.

Thinking Beyond the General Fund

If your events budget leans heavily on the general fund or ticket sales, you're walking a fiscal tightrope. One unexpected dip in attendance or a tough budget year and suddenly, your beloved events are on the chopping block. That’s no way to plan.

To build resilient, scalable events, you need diverse revenue sources. Funding that aligns with your goals, grows your capacity, and brings new partners to the table.

Ticket revenue can be unpredictable. General fund support is finite. But there are broader forms of funding—ones that too many local governments underutilize. This includes:

• Targeted grants from outside agencies

• Sponsorships that align with community values

• Thoughtfully structured user fees

The key is to treat revenue generation as a deliberate, long-term strategy to fund innovation and expand access.

Grants

Many municipalities focus on what’s inside their own budget cycle—but the "real" money might be outside of it. Federal, state, and private foundation grants are powerful tools for underwriting events, especially those tied to broader community goals like sustainability, inclusion, health, or economic development.

The City of Tacoma, WA developed a full ecosystem of event-focused grants:

• The Make a Splash Grant supports stormwater education through public outreach.

• The Sustainability Small Grant funds local events tied to environmental action.

• Their Environmental Services Event Support Program provides free or reduced-cost trash, recycling, and sanitation services for qualifying public events.

These are built-in incentives for event organizers to meet city goals. Like reducing pollution or engaging underserved communities.

U.S. municipalities often underapply for federal and state-level grants. So don’t stop at your city’s grant office. Use resources like your state’s Department of Commerce and Arts Council directories.  And designate staff (or consultants) who can write, track, and manage grant compliance year-round.

Sponsorships

Sponsorship isn’t charity. It’s marketing. And it's growing fast, according to Market US:

• The global sports sponsorship market is projected to hit $144.9 billion by 2034.

• In the U.S. alone, team sponsorships brought in $8 billion in 2024, up 20% from the year before.

This matters for you because the same companies eager to sponsor college stadiums, food festivals, or e-sports tournaments are looking for local exposure too. Especially if your events serve families, promote health, or attract diverse audiences.

Most local governments treat sponsorships informally. A logo on a banner. A check. A thank-you. That’s it.

What’s missing? A professional approach. Here's what a smarter sponsorship strategy could look like for you:

• Defined benefits: exposure levels, naming rights, speaking opportunities

• Data-based targeting: align sponsors with specific audiences and outcomes

• Performance metrics: impressions, engagement, lead generation

• Approval workflows: especially for high-dollar or long-term agreements

• Transparency policies: to guard against conflict of interest and maintain trust

A recent industry survey found most exhibitors don't even set goals for their sponsorships... yet 88% still say they meet or exceed expectations. That gap tells you one thing: sponsorships are working, but few are tracking what’s actually being achieved.

Cities like Fort Worth, TX and Cary, NC have created formal sponsorship policies to fix this. Their policies clearly define:

• What types of sponsorships are permitted

• Who can approve them (based on duration and projected revenue)

• How partnerships align with city values, equity goals, and brand standards

These policies protect public trust and create consistency. Which makes it easier to pitch to sponsors who want a clear return on investment.

And don’t overlook corporate matching gift programs.

• 51% of Russell 1000 companies offer employee gift matching.

• 84% of donors say they’d give more if matching were available.

That’s a double win: You grow donations and engagement, while companies get the visibility and community impact they want.

user fees

When done right, user fees help ensure your city’s services are paid for by those who use them most. That includes pool passes, park rentals, inspection services, event permits. Everything.

Setting fees has to align with policy, recover true costs, and clearly show your residents what their dollars support.

The Office of Management and Budget’s Circular A-25 Revised is a go-to reference for how the federal government sets user charges. While not mandatory for local governments, the principles are solid and adaptable.

Here’s what it lays out:

• Special Benefits: If someone gets a distinct benefit (say, exclusive access or a business license), they should pay a fee.

• Full Cost Recovery: Fees should cover everything: direct labor, indirect overhead, consulting, utilities, depreciation, and enforcement. If the service acts more like a business deal (e.g., leasing space), fees should reflect market value.

• Rates, Not Flat Fees: Use percentage-based rates whenever possible. They flex with changing costs, making future adjustments easier and more defensible.

• Charge the Direct Beneficiary: The person or entity that directly receives the service should be the one paying. Even if others indirectly benefit down the line.

• Exceptions Are Rare: Only consider waivers if collection costs are too high—or in diplomatic cases.

And you’re not alone in trying to refine your user fee strategy. Cities across the U.S. are formalizing policies to bring clarity and consistency to how they charge and why.

Take Chicago’s Office of Inspector General, which urged the city’s Office of Budget and Management to follow GFOA best practices. Their recommendations included:

• A full inventory of user fees

• A regular review schedule

• Full-cost analysis (with indirect costs included)

• Long-term revenue forecasting

• Transparent public communication

User fee policies are a reflection of your priorities. They show whether you’re aiming for equity, sustainability, or political convenience. When structured properly, user fees promote fiscal responsibility and build public trust. And when your residents trust you, they’re more likely to participate, comply, support, and even advocate on your behalf. 

Residents will understand the “why” behind the charge. And you avoid unintentionally subsidizing one group with general tax dollars from another.

To get there, you need:

• Accurate cost accounting (Activity-Based Costing helps)

• A clear, formal policy that includes review timelines

• Public-facing explanations of how fees are set

It’s not just about what you charge. It’s about how you communicate the value behind it.

Innovative Revenue

Public events open the door to creative, untapped revenue streams. And you don’t need a huge city budget to get started.

Here are a few ways local governments are getting inventive:

• Advertising at events: Sell banner space, program ads, digital signage slots, or microphone mentions.

• Licensing vendors: Food trucks, artisan booths, wellness stations. Charge them for access, placement, or power hookups.

• Business incentives: Offer small tax breaks or city service perks to local businesses that financially support public events.

• Asset monetization: Lease out city-owned spaces (rooftops, parks, community centers) for private use during off-hours.

• Fee-for-service models: Implement charges for livestream access, premium seating, or post-event content downloads.

According to the Urban Institute, cities are increasingly leaning on “general charges”—specific payments for specific services (like parking or airport fees)—as part of their broader revenue strategy. It’s a trend worth watching.

Sponsorships Revisited

Let’s be blunt—many cities are still treating sponsorships like an afterthought. A logo here. A handshake there. Maybe a check.

But you’re likely leaving real money on the table.

A strategic sponsorship program can be a funding mechanism. When paired with matching gift programs mentioned earlier, (which 51% of Russell 1000 companies offer), it becomes a powerful tool for sustainable funding.

The key is structure:

• Define clear deliverables

• Measure return on investment (see above)

• Use formal agreements

• Promote the program as a legitimate partnership, not a donation

This kind of rigor is what turns a $1,000 event sponsor into a multi-year partner who funds half your summer series.

A Proactive Path to Fiscal Health

Public events are economic drivers, too. They’re trust builders. They’re the reason your residents show up. And not just physically, but civically (kinda sounds like 90's R&B lyrics, but still true).

But to unlock their full value, you have to stop seeing the events as cost centers. Instead, treat them like what they are: strategic fiscal opportunities.

That paradigm shift takes discipline. It takes structure. And it takes the right tools.

Start with budgeting. Use Zero-Based Budgeting to question every dollar. Use Activity-Based Costing to understand what things actually cost. These methods bring clarity and help you align spending with real priorities—not just tradition.

Next, diversify your revenue streams. Grants, sponsorships, and user fees each bring unique benefits. But they only work if you treat them seriously. Write policies. Track performance. Adjust based on data.

And don’t just measure dollars. Track social impact too. Use tools like SROI (Social Return on Investment) to show the broader value your events bring—jobs supported, businesses boosted, communities engaged. Translate that data into real stories your council, community, and staff can connect with.

And use your ERP software to calculate everything accurately and gain approvals quickly. 

Because at the end of the day, you’re not just funding fireworks or concerts. You’re investing in civic pride, local economies, and the kind of shared experiences that strengthen community ties.

You have the power to lead this change. By embedding financial best practices into every part of the event lifecycle, you create lasting impact. A legacy.

So go ahead. Master the money. Tell the full story. And turn your next event into something that delivers for years to come.

Or learn more from our other blog posts...