Charity event at risk over corkage fees and other costs

It’s one of the biggest events on the Nelson calendar, but the future of a fundraiser that generates hundreds of thousands for hospice is in question due to the climbing costs levied by a council contractor. 

Last year, Dancing For a Cause (DFAC), held at the Trafalgar Centre, raised $440,000 for Nelson Tasman Hospice. 

DFAC trustee Michelle Byczkow said the bulk of the money came from the 10 contestants, who fundraised while they trained: a significant effort that put much-needed funds into a vital organisation’s coffers. 

Next year’s event will be bigger and better, running over two nights instead of one. However, the costs charged by council contractor Community Leisure Management to use the Nelson City Council-owned venue are also greater than ever: double that of 2023. 

Trafalgar Centre manager Mark Mekalick said most of the cost increase for Dancing for a Cause this year was because of the extra night. The venue had been booked for eight days. 

On days there was no show the organisers had been given a 50% discount on the community rate but show days had more costs, including cleaning, security and extra staff, he said. 

However, Byczkow said the costs, which included corkage fees of almost $10,000, put the event’s future in question. 

Previously, volunteer power has kept costs down, allowing DFAC to maximise their donation. 

“It’s incredible, the support we get from the community: businesses, contestants, people volunteering their time in the lead up and over the event.” 

However, CLM, who have managed the Trafalgar Centre since 2017, now required them to use their staff, instead of trained-up volunteers. 

The trust had tried to negotiate with CLM, suggesting ways to cut costs. But this had been unsuccessful. 

“We have asked if we can provide our own volunteers… they said no.” 

CLM were also charging a $10 corkage fee for each diner, working out to almost $10,000 over two nights. 

An email from CLM, seen by the Nelson Mail, said this charge covered wait staff, and made up for “lost income”. It did not include glassware, or refrigeration. 

Byczkow said this corkage fee was not a cost they could cover, and the trust was seeking sponsors to cover this fee. 

“We understand costs are rising, CLM are running a business. They need to make profit, to be accountable to the council and ratepayers. But we are also accountable to the community to raise money. 

“It’s a huge source of money for the hospice… we are a charity; not a corporate event that’s going to make a profit for our shareholders,” she said. 

“We are uncertain now… are the costs going to increase so much that we can’t continue?” 

A change of venue was not an option: there are no other places to hold such an event. 

And there was nothing quite like Dancing For a Cause on the Nelson calendar, Byczkow said. 

“People go out for dinner, drinks, and spend money in the city before coming to the event.” 

CLM is a facilities management company based in Auckland. In Nelson and Tasman, their contracts include Saxton Field, Richmond Aquatic Centre, the Riverside Swimming Pool and Trafalgar Park. 

In October, a school principal spoke out about the high cost of hiring Saxton Field facilities for a sports event. In November, Nelson’s largest swim club said it faced an uncertain future because of the “astronomical” price of hiring lanes at Riverside. 

Sprig and Fern Brewing Co is one of the sponsors of Dancing For a Cause. The brewery also sponsors the Nelson Giants. 

Owner Tracy Banner said the brewery had a long standing relationship with these organisations: supporting their community was important to them, she said. 

“We give back to the community in a big way… we support lots of different causes.” 

Typically, the brewery had an arrangement where they supplied these causes directly, Banner said. 

“However the involvement with CLM has added an element of uncertainly for future sponsorship. Ultimately our preference is to remain with the status quo.” 

Last year’s Cancer Society ball, held in the Trafalgar Centre’s northern extension, raised more than $100,000 for the charity. 

General manager Michelle Hunt said the first year they hired the space for the ball, about six years ago, it cost them about $300. 

This year, the venue’s $1500 hire cost was covered by the council. However, CLM’s bill was $1400. This included costs for tasks once carried out by volunteers: waste management, cleaning, and $528 for putting out tables and chairs. 

Volunteers used to do all of this, Hunt said. 

“We’re not government funded, we’re 100% reliant on donations and fundraising events supported by the community. People come and support us … this is money off our bottom line.” 

In the past, local suppliers have supported the event with donations of food. 

However, this won’t be possible in the future, as CLM has told them they will need to use their caterers. 

Hunt wasn’t sure where the event would be held next year. 

“We won’t be having it at the Trafalgar Centre next year. But where else can you go with 200 people?” 

Mekalick said the centre could not use volunteers in alcohol serving roles as that could breach its licence. 

He said the total corkage charged for DFAC was under $10,000 for the two nights. Corkage had been offered this as a way to reduce costs. Without it the estimated cost would be around $47,000 (based on four drinks per corporate guest at $12 per drink). 

As a sponsor of the event, CLM had taken another $5000 off its bill. 

“We think this a great event and while we do need to charge a rate that allows us to maintain and operate the Trafalgar Centre on behalf of Nelson ratepayers, we feel that we have done everything we can to help Dancing For A Cause go ahead.” 

Community services group manager Andrew White said venue hire rates had increased “in line with inflation” since last year, and outlined the council’s contributions to the hospice event, including the $6716 venue hire. 

“Although we do offer a range of discounts and financial assistance to charities and community groups, undercharging for a venue impacts Nelson ratepayers and CLM’s ability to run a first-class facility.” 

If you’d like to talk about sponsoring Dancing For a Cause, or are willing to cover their corkage fee, contact emma@dancingforacause.co.nz. 

By Matthew Hampson, Warren Gamble, Nelson Mail