Background
Startup Weekend is at it’s core a bootstrapping Organization. For the first 2 years of it’s existence, nearly 100% of Startup Weekend’s revenue came from event ticket sales. As we’ve grown, more opportunities have opened up around alternative revenue streams: regional/global sponsorships, grants, partnerships, etc. To this day, however, event-level revenue contributes a significant amount to helping us keep the lights on.
Up until December 2010, Startup Weekend asked Event Organizers to contribute $2,000 USD per event back to the Organization. $2,000 was, and remains to be our benchmark for sustainability. While this model was generally viable, as we began to expand to smaller cities and new countries/regions wherein event budgets are naturally smaller and sponsorships more difficult to come by, this amount became a significant pain point and barrier to entry. This issue, combined with our constant struggle to improve our impact on the entrepreneurial ecosystem, led us to come up with the Community Chest model.
Since it’s inception in January 2011, the Community Chest model has proved highly successful, allowing events to begin happening in developing economies and providing a formalized way of allowing low-budget events to happen without eliminating Startup Weekend’s revenue stream. Only 8 months after it’s inception, over $50,000 has been deposited in various Community Chests around the world, approximately half of which has already gone to further supporting the Startup ecosystem.
What it is
Under the Startup Weekend Community Chest model, 50% of all net proceeds after event expenses have been covered (see below for details) from an event are kicked back to Startup Weekend, while 50% go to a local ‘Community Chest’ fund. These funds can be used for future projects, initiatives, or events that further support the entrepreneurial/startup ecosystem. This can include, but is not limited too:
- Follow-up meetups bringing Startup Weekend teams together to report progress and ask for help
- Funding/sponsoring other types of hackathons, meetups, and Startup Weekend-like events
- Sponsoring other community initiatives (non-profit co-working spaces, etc)
- In-kind support to Startup Weekend teams who are still working 30+ days after the event
- Any other initiative that supports the startup community
Note: All funds used to sponsor outside events must have proper sponsorship recognition given to Startup Weekend
How it works
Your Event budget will ultimately determine how much funds will go into your Community Chest account. After the event budget has been closed out, basic expenses (food, drink, supplies, venue costs, schwag, and Facilitator travel and accommodation) have been covered, and all reimbursements have been processed, 50% of leftover money will (assuming SW is managing all Event funds) remain with Startup Weekend, and 50% will be earmarked for your Community Chest fund. Startup Weekend will hold on to these funds until you submit a basic proposal to use them. The funds will be available for use up to 1 year away from the event.
Who decides how the funds are used?
The Local Organizing team is responsible for submitting proposals on how the funds should be used, and these proposals are accepted (and on occasion rejected) by the Startup Weekend Core Team. Our long-term vision is to an establish a Board of Advisors in every city who will help determine the best usage of Community Chest funds.
