Project Overview: CARE4YOU is a fictitious non-profit organization interested in launching a new fundraiser event. As a non-profit organization, all the profits from such an event will be used to further their mission. The mission is to build new schools in underprivileged areas.

The Board of Directors has asked you to design and elaborate a plan and an operating budget for such a fund raising event. Their list of potential performers/speakers is long - comedians, singers, politicians, sporting celebrities, etc, but you have to settle on one ideal candidate.

When developing your plan for the event and choosing the celebrity, you should identify your target audience and set VIP and non-VIP prices.

Apart from ticket sales, include other revenues that could generate extra profit from running the event, such as parking, food and beverage sales, merchandizing (gift item sale).

A written report with a concrete budget and a CVP analysis must be presented to The Board of Directors.

Project Requirements

Your document should be present in a well-structured format with clear argumentation and analysis, which should include the following:

1. A detailed description of the event, including the venue, the time and the scope of activities. (hiring a tent, a stadium, concert or conference hall).
2. Clearly define your pricing strategy for tickets and other potential sources of revenue.
3. Elaborate on how many people you are expecting to attend such an event.
4. Determine revenue that you will manage to generate from different sources (tickets, F&B, parking, etc).
5. Present your estimate of cost of marketing and promotion.
6. Determine all your fixed costs associated with such an event, such as rent of the facility, liability insurance, security, maintenance and costs associated with hosting the guest, parking, volunteers, paid employees etc.
7. Determine your variable cost, such as F&B and any extras that you may incure - commission to sales agents, for example, et.
8. A detailed financial plan which includes the following components:

a) A cost-volume-profit income statement and a CVP analysis.

b) Determine your Contribution Margins for each type of ticket sold as well as other "products" or "services".

c) Calculate WACM as a percentage.

d) Calculate your breakeven point in sales revenue.

e) Calculate you Margin of Safety as a percentage.

f) Calculate the level of sales revenue that you should generate to achieve a targeted profit that you wish generate to support your charitable missions

Each of the components of the plan should be clearly defined and supported by a

written discussion. The reader should be able to reconstruct your calculations

(ticket revenue = number of tickets sold x ticket price) and clearly identify your

assumptions.

You should conduct some investigations to support your analysis. You may use your

best judgment to come up with the realistic fee you expect the celebrity and the venue

to charge for the event.

You must also clearly spell out the assumptions you are making and properly cite the

source of any information you used to arrive at your projections.

For the CVP analysis, you must identify the volume you will need to achieve to

breakeven, and the volume you will need to achieve to meet your target profit for the

event.