How to properly reconcile the money you collect
There’s more to fundraising than just raising money. You’ll also need to know how to manage and protect your money properly. You should first sit down with your board members and discuss what projects you hope to fund and how much these items are going to cost. This may require a little bit of research but it will be well worth the effort.
You can then set a goal budget based on the financial numbers that you come up with. This will give you a benchmark that will allow you to assess your progress throughout the course of the school year and make budgetary adjustments as needed. Here are some additional ideas that will allow you to handle your fundraising money properly.
Document Your Earnings
It’s important to create an efficient and workable paper trail for all of your expenditures. Make sure to have reimbursement and check request forms for volunteers to use. It’s also important to use cash deposit receipts after any fundraisers so you can record the money that’s been collected. In addition, make your forms accessible online so your volunteers can easily download them.
Reconcile Fundraising Money Regularly
If you don’t inspect and make adjustments to your accounting records on a consistent basis, you may end up having a mess on your hands. Be sure to set a periodic task to verify your reported balance with your bank account. If you don’t do your due-diligence you’ll simply have to rely on what the bank reports. It’s a good idea to assign an additional person to double-check your records just to make sure.
Your treasurer should also prepare monthly reports for your board members. It should show the beginning and ending balance along with any withdrawal or deposit transactions. For additional information, visit ptotoday.com.
Coordinate Your Financial Procedures
To make sure that everyone’s on the same page, make sure to run through the dos and don’ts of handling all fundraiser money. People should know how to properly receive money as well as count deposits and use the deposit form. You should also make it a requirement to have more than one person present whenever you’re counting money. Finally, set a deposit deadline of within 24 hours after your event.
And whenever you are making a payment, make sure that 2 people are signing the checks. This provides additional accountability.
Handle Bounced Checks
You should also have a policy in place to handle bad checks. It’s bound to happen, especially with larger groups. We provide insufficient funds notices in our fundraising guidebook for our sponsors so they can copy and send out on a case by case basis. There are right and wrong ways to handle this so make sure to deal with it directly and discretely.
Find the Right Bank
Banks can charge fees for such things as falling below a minimum balance or exceeding a certain number of transactions for a given month. Be sure to find a bank that will best meet your needs. Occasionally, banks will waive fees for nonprofit organizations.
It’s important to have proper procedures in place so you can get the most out of handling your fundraising money.