Fundraising and the handling of cash payments and donations can get messy if procedures are not set in place.

If your charity is in the habit of leaving unmarked piles of cash donations around, then it is very easy for them to get misplaced or incorrectly reported.

Here are some tips to help your NFP handle their cash payments and donations effectively.

Record all monies received

Whether online donations or in-person donations, all payments to your non-profit must be registered in the accounting system. The longer this task is left, then the easier it is to keep up to date accounts.

Specify donation purposes

It is necessary to specify what the donation was for to ensure that the terms of the individual donation are complied with. You might be fundraising for more than one cause – these will have to be noted to avoid confusion. This will also help when reporting back to the board.

Do not deduct from cash donations

Unless otherwise agreed, do not make any deductions from cash donations received from the organisation. If it does occur for whatever reason, then it must be noted and replaced to avoid misuse of funds.

Offer receipts if necessary

If the money is raised by a street collection, then the money needs to be placed in a sealed receptacle with no receipt necessary. If collected through more formal methods, a receipt must be given.

Bank cash immediately

To avoid confusion, cash should be deposited as soon as possible. If this is not feasible, it must be placed in a secure location until such a time when it can be banked. Never leave unsecured money unattended. This will decrease any risk of fraud or loss of funds.

Count cash multiple times

As a means of double-checking the figures, cash should be counted by two unrelated individuals. The Volunteer Treasurer and one other member of staff are ideal.

Reconcile donations

The money deposited at the bank must be reconciled with the cash donated as soon as possible. The Admin Bandit software makes segment reporting simple to do and reconciling a breeze.

For more information on our award winning software package, contact Admin Bandit. From as little as 10 cents a day, you can make the life of a volunteer treasurer so much easier. You can sign up for our free trial here.