The culling of costs, including part of the project management fee, to avoid this year's Big Gay Out being canceled or making a financial loss, are being attributed to the effects of the economic recession. Big Gay Out, small pay out: Jonathan Smith Jonathan Smith of Eventimento, which has run several Big Gay Out picnic days, and who is the creator of the hugely successful Queen of the Whole Universe fundraiser pageant, says he presented financial figures to the NZ AIDS Foundation shortly before Christmas. The Foundation underwrites the event to help facilitate some of its outreach and research projects. The pre-Christmas figures showed a looming loss due to lower than hoped-for levels of sponsorship for the February 8 event. Smith says that the initial BGO budget, approved by the NZAF in September last year, indicated that the event would run at a loss if the required level of financial sponsorship or grants were not achieved. This budget was approved. "At a budget meeting prior to Christmas I indicated that the event would make a loss and that NZAF would need to cover this loss if the event continued," says Smith. "The NZAF did not wish to accept any loss at this stage." Neither Smith nor the Foundation have revealed the size of the projected loss. Smith says that a week ago he offered several suggestions for pruning the budget, including his standing down, having organised and confirmed "70% of the entertainment and over 70% of the budgeted revenue from the stalls" and therefore reducing his project management fee. This offer, which Smith describes as a "few dollars" and the Foundation calls "significant," was accepted by the NZAF. "Jonathan has completed a tremendous amount of work to date. The majority of the planning and organisation has been carried out, we are in a very strong position as the event draws near and do not need to make any major changes. We are extremely grateful to Jonathan for the work that he has done and for his support of the BGO and the NZAF," says the NZAF. The Foundation says the decision to pass management to NZAF staff was reached "mutually and amicably," and it has fingered the economic recession as a major factor in the sponsorship shortfalls. "Sponsorship of the Big Gay Out 09 has been affected by the economic downturn and when contractual costs and fees relating to Auckland City Council permits were taken into account the event was projected to make a loss," it says. The NZAF says Eventimento's project management fee was "in line with industry standards" but "made a significant difference to the financial bottom line." A tender process was conducted last year and Eventimento’s fee is understood to have been the lowest of the proposals received. Other BGO expenses that were eliminated included advertising, design, printing, administration and contingency costs, and the NZAF is sure the BGO will now break even. The BGO is "a key event focused on the goal of improving social environments for LGBT communities and one of the five key elements of the Ottawa Charter for Health Promotion," according to the Foundation, which says it is "extremely grateful" to Smith "for the work that he has done and for his support of the BGO and the NZAF." Smith and Eventimento were initially contracted by the NZAF to run the Big Gay Out in 2003 and 2004 after a financial collapse of the Hero Project left the BGO's future in doubt The event was subsequently run in-house by the Foundation until last year when it again contracted out to Eventimento. Smith says the BGO made "a small profit" in 2003 and "a small loss" in 2004. The Foundation says Smith has agreed to continue "as an advisor and mentor to the NZAF... in order to ensure that the event breaks even and is sustainable for future years." Simon Harger-Forde, the NZAF's Director of HIV Prevention and Communications, "is leading the project management for 2009." It is understood a number of other NZAF staff, perhaps six or seven, will now also be diverting time into the final preparations for the BGO. Some were today spotted at Pt. Chevalier's Coyle Park, apparently familiarising themselves with the BGO venue.
Credit: GayNZ.com Daily News staff
First published: Wednesday, 14th January 2009 - 2:47pm