## Featured resource

### Numeracy: What Classroom Teachers Should Know

What is numeracy in an Australian context?

Members: $22.00 inc.GST Others:$ 27.50 inc.GST

Home > Maths in Action > Starting points > Fundraising treats

# Fundraising treats

A school plans a fundraising event, for which it has a sponsor and an equipment supplier (benches, tables etc). The sponsor agrees to pay an amount equal to 20% of the proceeds obtained, and the school agrees  to pay the supplier 10% of the proceeds.

Does it matter whether the equipment supplier is paid before the sponsorship money is obtained – or vice versa?

Suppose that the total takings are $1000. (a) Pay supplier first Amount to school after costs =$1000 x (90/100) = $900 Final amount to school =$900 x (120/100) = $1080 (b) Obtain sponsors money first Amount to school after sponsor =$1000 x (120/100) = $1200 Final amount to school =$1200 x (90/100) = $1080 ### Solution and interpretation From the school’s point of view – No ($1080 both ways).

From the viewpoint of the supplier and the sponsor – Yes.

(a) Supplier gets $100 and Sponsor pays$180

(b) Supplier gets $120 and Sponsor pays$200.

In (b) the sponsor has subsidised the supplier as well as sponsoring the school.

### General insights

• The best solution to a problem may depend on the perspective of different persons involved: school? supplier? sponsor? all three?
• Key terms need to be defined clearly up front – are “proceeds” to be determined before or after subtracting costs?
• Is sponsorship to be applied to gross or net profit?
• Team approaches can ensure that the interests of all players are  considered.

 Go to the Starting Points Forum to join the discussion or find more Starting Points