IQA Budget for the 2017-2018 season
- Published: 25 March 2018
- Written by Armand Cosseron
In its mission to develop quidditch on a global scale, the International Quidditch Association (IQA) has decided to publish its projected expenditures for the 2017-2018 fiscal year, and for the 2018 IQA World Cup. We are also pleased to present the annual financial statement from the 2016-2017 fiscal year, and our current statement of income.
As you review these documents, please keep in mind that while the retrospective documents are fully accurate, both forward-looking budgets are living documents and therefore subject to change. These budgets were released to our members earlier this weekend and we have since hosted two Office Hours sessions to respond to their questions.
Another Office Hours session will be set up in April for the public to address questions on these documents or any other feedback you would like to provide to the IQA. Keep an eye out for the date and time!
While the IQA generally keeps accounts in Euros, at various times other currencies have been used where more appropriate given the facts and circumstances.
IQA General Budget
The following summarizes the budget for the IQA’s 2017-2018 Fiscal year, which runs from September 1, 2017 until August 31, 2018. The IQA has not had a formal budget in the past due to high turnover of volunteers, compounded by the fact that this is the first fiscal year in which we have had a consistent Financial Director (and only the third time in the IQA’s recent history to have had a Financial Director). Given this, many of the numbers given are projections of operational expenses.
Many of the larger expenses are non-recurring and are not anticipated to be included in future budgets.
As a matter of good corporate governance, the IQA has taken an approach to budgeting whereby it projects revenues and expenses conservatively. This means that we hope for expenses to be lower than projected and income to be higher. This prevents the IQA from suffering poor results in the event that our projections are not completely accurate. It is also important to note that this is a budgeting approach and necessarily all of the numbers are projections. In many instances it is impossible to say with certainty what the actual results will be. While we have invested significant time and effort into preparing an accurate budget, we expect that actual results may differ significantly from our budget, as with any budget. These projections were made for IQA planning purposes and are being shared with our members and the public for reasons of transparency; they are not promises or guarantees to achieve certain results and, as previously stated, certain results may not in fact be achievable. The below represents our best guess as of the time of publication.
The following section discusses non-recurring, recurring, and special events where revenue is raised.
HR Tests and Membership Fees
The IQA expects to receive approximately 1,500 EUR from Head Referee Tests and 3,400 EUR from NGB membership fees.
The IQA is owed approximately 7,000 EUR of backdated fees with about 50% of these still uncollected. Some of the membership payments outstanding are expected to be made to the events company as it is incorporated. This will allow NGBs who had previously been legally restricted to pay the IQA to do so.
IQA World Cup
This year is an IQA World Cup year, the projected income for this event is 24,000 EUR. This amount is a conservative amount based on our projections and acknowledges that only one international tournament to date has been revenue generating. More on this amount is explained in the IQA World Cup section.
Total Budgeted Income
The total budgeted income for the 2017-2018 year is 35,900 EUR.
The section below explains general expenses incurred by the IQA, similar to the previous section, expenses are divided between recurring, non-recurring, and pending/special purpose.
1,048 EUR have been allocated to IT costs which includes financial software and email hosting. We currently pay approximately 4 EUR per month per email account, which given the size of our organization can lead to a fairly sizeable expense. We are exploring ways to reduce this cost in the future.
5,800 EUR has been allocated to insurance, which will be used for general liability and Directors and Officers insurance.
The IQA has not yet purchased such policies and as such the budgeted amount is an estimate of what we expect to pay when such policies are purchased. While the IQA hopes to leverage our connections to achieve lower rates, the budgeted item is set based on our projected costs using a conservative approach to budgeting that overstates expenses as necessary to provide sound financial management.
The IQA intends to purchase two types of insurance. Directors and Officers insurance is purchased by most for and non-profit organizations and protects individual directors and officers of the organization from liability in the event of a legal action against the organization. This is commonplace among organizations of our size and experience and allows us to recruit talented individuals to our board and to our leadership positions who can do their jobs without fear of personal liability.
The IQA also intends to purchase commercial liability insurance. There is sufficient uncertainty of the rate that we will be able to achieve and because the IQA intends to purchase this policy in the jurisdiction of incorporation, we have not been able to substantially engage with a broker and are thus estimating this rate based on information available to us and which we have sought out prior to creating this budget. Commercial liability insurance will protect the IQA from, among other things, litigation, damage to property (of the IQA or a third party covered by our volunteers) and other potential catastrophic events. Organizations of the size and scope of the IQA typically maintain such policies.
800 EUR is being allocated to the Business Development Department for field work which will be aimed at generating revenue for the IQA.
1,040 EUR is being allocated for long-term volunteer perks - this amount comes out to approximately 20 EUR per volunteer. The exact nature of the perks are as of yet unknown and is likely to vary based on department, but we have budgeted for the ability to provide tokens of our appreciation to the IQA’s hard-working volunteers.
3,900 EUR has been budgeted for website development and maintenance, printing for the various translation teams, support for photographers, and social media advertising.
The Communications Department itself is being allocated 900 EUR. 500 EUR is expected to be allocated to social media advertising which can be used for volunteer recruitment or event promotion. By advertising more, the IQA hopes to be able to attract more talent that would allow the IQA to accomplish more.
150 EUR has been allocated for printing costs for the translation team. Given the wide scope of languages spoken by IQA members and media covering quidditch, it is necessary for the IQA to translate many of its materials into multiple languages. Translating is more easily done using hard copies to work off of and this will ease the cost of printing out resources for our translators. It is also hoped that this will reduce the time needed for translations and help the IQA reach a larger audience faster.
250 EUR has been allocated to for perks for photographers. The IQA currently receives photographs from photographers for free, but by offering perks, we hope to get more photographs. This would also encourage people to take and share pictures of the sport.
The remaining 3,000 EUR has been allocated to contracting a website developer if this expense becomes necessary and will not be recurring.
1,100 EUR has been allocated to the IQA Bursary Program. Funds will be used to assist member NGBs and Emerging Areas with expenses they may be unable to cover themselves, such as equipment, education, and program development. It is our hope that the IQA Bursary Program will allow quidditch to continue to grow and thrive worldwide.
1,540 EUR is being allocated to Gameplay, which includes expenses related to Referee Development Team costs, administration of referee testing, website maintenance.
5,000 EUR is being allocated towards managing the IQA’s incorporation efforts. Because the IQA exists as an international sports organization managed by its members, it faces a number of legal complexities. We intend to retain an attorney to assist in the preparation of the necessary legal documents to ensure that we have complied with all necessary legal formalities to ensure a proper incorporation and to ensure the IQA’s organizational documents are established in a way that allows for the organization to operate as efficiently as possible. In addition, the IQA will be required to pay various filing fees in connection with these efforts. The IQA intends to incorporate prior to a special meeting of its members scheduled for July 2 and are presently engaged in a process to ensure that deadline is met.
A total of 4,000 EUR has been proposed for stipends for the Executive Director and Department Heads. While included in the budget as an optimistic measure, these are not yet approved and will be evaluated by the Board at the end of the financial year. The IQA’s Trustees recognize that our volunteers, especially our Executive Director and Department Heads work incredibly hard and make many sacrifices for the organization and we think it is important to recognize the hard work and effort of all of our volunteers. The Trustees would very much like to be able to reward their efforts with a small token of our appreciation, which is insufficient to match all of the work that they put in; however we are waiting until year end, where we will have a clearer view on our actual budget position before making that decision definitively.
5,000 EUR has been allocated towards travel expenses for trustees to attend the in-person board meeting and congress meeting at IQA World Cup. At this point in time, the IQA has not developed a strategic plan, a clear vision, or a clear mission. This makes the work of the operations branch difficult and overall results in more work and often less coordinated work than we would like. However, these discussions take time and are nearly impossible via phone call or video chat, particularly given that our Trustees are spread across time zones from New Zealand to the United Kingdom. Bringing the Board together for World Cup will ensure we can have this key organizational planning done and move forwards with our goals and to help our members. Additionally, as all Department Heads and the Executive Director are planned to be used as additional volunteers to support the World Cup Organizing Team, having Trustees present throughout the event will allow us as an organization to speak to members in person and engage with our members, and with potential new volunteers.
This expense will be allocated to trustees who apply for the funds and will likely not cover all expenses the individual incurs. Funds will be dispersed per the IQA Travel Policy, and although we hope someday to be in a place to subsidize travel for all, this number has been based off of Trustees who have identified financial need as a barrier to their attendance at the World Cup.
A total of 15,000 EUR is allocated to getting Team Uganda to compete in the IQA World Cup 2018.
Of the 15,000 EUR, 7,500 EUR of this money has been earmarked in the development fund from funds raised in connection with the 2016 efforts to bring Team Uganda to World Cup. We initially raised 10,200 EUR from the fundraiser. Less fees, refunds, and the payment to Savage for fulfilment of perks, we were left with 5,800 EUR. The IQA promised to match 1,500 EUR leaving us with 7,300 EUR which the Board elected to round up to 7,500 EUR.
The remaining 7,500 EUR will be contributed from the IQA’s general fund. Should the team be unable to attend IQA World Cup, the IQA will announce a use for these funds in a similar fashion consistent with the intended purpose of these funds.
At this point in time there is no immediate plan to continue to hold a development fund once this has been spent, as future development-oriented spending will fall into the department managing the spending. However, a future Development Fund for larger expenditures (such as this) has not been ruled out.
The total expenditure for the IQA are projected to be 44,228 EUR.
The IQA General Budget can be found here.
IQA World Cup 2018 Budget
The following section highlights line items on the IQA World Cup budget. IQA World Cup 2018 is an international quidditch tournament amongst national teams that is being hosted by IQA Events 2018 Ltd. a, UK limited company that is a wholly owned subsidiary of the IQA. This entity is managed by a subset of the IQA’s trustees and is effectively run by the World Cup Organizing Team. The below is being released by the IQA on behalf of IQA Events 2018 Ltd. with their permission.
The anticipated net team fees are 11,000 EUR. This number is based on 35 teams attending the event at a rate of 400 EUR per team (14,000 EUR gross) and a total discount of 3000 EUR being offered to emerging and developing teams. Any team that feels they will require a discount to attend should contact the IQA at finance(at)iqasport.org.
The anticipated income from player fees is 30,300 EUR. This number is based on 505 players attending the event. Alternates and coaches will not be charged fees to participate in the event and are not included in the player count.
Merchandise and Ticket Sales
The IQA has budgeted 30,000 EUR of income from merchandise and ticket sales at the IQA World Cup 2018.
This number is highly speculative and is based on the income generated in at the 2016 World Cup The IQA has only hosted one tournament that is comparable to IQA World Cup 2018 (the 2016 World Cup in Frankfurt). We thus do not have a strong basis for concluding whether the revenues achieved there are representative of what the IQA will be able to achieve in future years. The IQA’s goal is to maximize revenue from tickets and merchandise sales. We believe that World Cup in Florence gives us the best possibility of achieving that, given its status as one of Europe’s preeminent cultural cities and tourism destinations. However, we cannot know how the interest in quidditch there will compare to the interest in Frankfurt, although we are taking as many steps as possible to maximize this revenue stream. The budgeted figure for this amount is thus very uncertain. We have used a conservative estimate for revenue from ticket and merchandise sales based on our experience and the information available to us. This is consistent with best practices so that we do not overestimate our income and consequently leave ourselves in an unmanageable financial position.
7,000 EUR has been allocated to tournament basics. Major cost drivers for this category include hires for first aid provided by the IQA, the transportation of gameplay equipment, sound system, and the website domain.
5,500 EUR has been allocated to logistics include portable toilets, disposal of garbage, tables, tents, and other logistical equipment needed to run the event.
2,000 EUR has been allocated to hire security for the venue. This number has been calculated based on the amount used at the previous IQA World Cup.
4,000 EUR has been allocated to volunteer expenses. This amount includes referee and snitch clothing, wristbands, lanyards, volunteer food and drink, and other perks for non-World Cup Organizational Committee volunteers.
Executive and Tournament Committee Travel
8,500 EUR has been allocated to travel for the executive and tournament committee. This will cover an individual’s costs to get to Florence, hotel accommodations, and food for the duration of the event. The IQA feels that it is necessary at this time to cover the expenses of those individuals who are needed to ensure that the tournament can operate. Because we have a worldwide volunteer base, it could be quite difficult for some of our volunteers, who are necessary to ensure that the tournament runs effectively, to attend.
We feel very strongly that no volunteer should have to make substantial financial sacrifices to help the IQA. Given the extensive work that it takes to plan a tournament of this magnitude, we did not want cost to be a deterrent to having the best volunteers we could run the tournament. All individuals attending under this line item are crucial to have personally attend. This budgeted cost will be allocated per our Travel Policy.
2,500 EUR has been allocated for miscellaneous costs such as water for players, player/staff transportation, insurance, trophies, medals, printing, office supplies, and radios.
Emergency Money/Transfer Fees/Taxes
5,000 EUR has been allocated to cover international currency exchanges, taxes and other undetermined costs. At the last IQA World Cup, this fund was used up completely and the IQA anticipates to use this fund again to cover undetermined expenses or cost overruns. The IQA has not yet consulted appropriate experts in tax and may need to increase this item in the future depending on the advice we receive.
6,800 EUR has been allocated to cover the cost to rent each venue - this rate was given at a substantial discount by our partners in the city of Florence and the Human Company. Last IQA World Cup, this expense was not seen because it was included in the bid package, but this year, only one bid package included a free venue. Unfortunately the bid offering a free venue was not feasible for other reasons, including the inability of one or more of our members to attend the tournament and the high cost of travel that would have been associated with this bid. The City of Florence and the Human Company have offered us substantial logistical and in-kind support in connection with their bid and have been and will continue to be true partners in the planning of this tournament. We are immensely grateful for their contributions thus far and their support of the tournament and of the sport of quidditch.
Tournament Basics Expenditure (Basic)
The total basic expenditure for this event is allocated to be 41,300 EUR, which matches the fixed income for the event.
6,000 EUR have been allocated for promotional expenses include advertising, livestream, and merchandise related to the tournament. We believe that these expenses will significantly help to grow the sport of quidditch and the revenues we can achieve at this tournament. This does not include promotional support promised by Florence and the Human Company.
The total expenditure for this event are projected to be 47,300 EUR. The expected profit from IQA World Cup is projected to be 24,000 EUR.
The IQA World Cup 2018 Budget can be found here.
Budget Release Explanations
IQA World Cup 2018 Budget
IQA Balance Sheet
European Committee Balance Sheet
IQA Income Statement 2017-2018