In an ideal world, a leisure manager can concentrate on providing the very best services, and need not be distracted by financial concerns. This is however unrealistic. Funding is a significant concern to most leisure managers.
Funding may come from various sources, for example:
- User Pays
- Government Subsidised
- Grants, Gifts, Donations
- Fund Raising
User Pays Funding
Here the product or service is paid for by the user.
The charges made to the user could be considered as either:
- Partial contribution to costs
- Full contribution to costs
- Costs plus an additional amount for investment in new facilities or services
- Costs plus profit (If the leisure enterprise is a profit making venture)
Government Subsidised Funding
Here government money is provided to partially or fully pay for facilities or services. Many facilities and services that are owned by governments are funded in this way.
Funding is usually allocated on a year by year basis.
Funding is generally allocated for two types of expenditure
- Capital Works or costs
- Operational Costs
Capital expenditure pays for buying equipment and facilities but not for the day to day operation of a facility or program. The operational expenditure covers the day to day costs including wages for staff and maintenance. Sometimes a government may fund the provision of a new facility; but not the operational costs. If budgets come under pressure, sometimes operational costs get cut.