Played at Strummercamp in 2013 and thought we sounded great with a Yammy SL360 which cost £140 (granted a bargain) through a Laney combo that cost £20, an unknown Telecaster that cost £70 through a Carlsboro combo that cost £20 as well, a Squier P (was cheap in a trade but I cant remember how much) through a Redsub combo that cost £70. Everything apart from the bass was bought off ebay for £320. Even if the bass stood me at £180 (which it didn't) that's £500 for everything apart from the kit.
Gear doesn't need to be expensive to sound good. I suppose its how you use it?
Apart from that, I cant see why a band can't fund its members equipment especially if they are getting paid? Tools of the trade after all. I wouldn't think twice about helping a band member out if we were paid or not. Band member with no gear = no band = no gigs = misery and no money for anyone. Simple!