You may not want to line your own pockets, but it would be a good idea to at least make sure you break even. A lot of people who attend folk festivals are as interested in sessions, sing-arounds etc as they are in seeing booked acts. There have been a lot of Festivals who brought a lot of people to a location and have been enjoyed by a lot of punters, but which lost money because people spent their time in the local pubs rather than going to the gigs.

There are a few ways around this :

(a) Have a licenced Festival Club with space for sessions etc, perhaps franchise out the bar, but make sure you get some sort of cut.

(b) A number of festivals require you to have a Festival Ticket before you can use the Official camp site. People will pay for the ticket and are then free to choose whether they want to be an audience or participants in 'Fringe' events, but at least you get paid for your efforts in organising and publicising the event.

(c) If this is too much trouble then try to find a friendly pub owner/manager and designate their premisis as an official festival session venue. In this case make sure you get the owner to make a generous contribution to the Festival for the privilege.