Money Matters

Cash handling in fundraising is not a very sexy topic. I repeat… Not. Sexy. The only thing less sexy is having someone walk off with the hard-earned dollars because you didn’t have proper procedures in place to protect your cash.

In all of the volunteer groups I’ve worked with, everyone is delightful and the thought of ‘not trusting’ somebody with cash handling is not on anyone’s radar. Appropriate procedures are not about a lack of trust, though, they are about being smart and avoiding a potential problem. They do happen.

Not only will your group be protected against someone walking off ‘Winona-style’ with your cash, but you also protect innocent volunteers from having ‘the question’ asked of them. ‘What happened to that money that was there’ or ‘There’s supposed to be more money than this’ are not questions that anybody wants to be asked.

A lot of money will change hands at your fete. It’s a huge responsibility for a treasurer. Clear procedures make it simpler, as does planning ahead.

On the day, plan to have:

• several eftpos or similar terminals
• if the size of your event calls for it, organise a portable ATM machine
• a secure and lockable area set aside for the collection and counting of money
• coins and money bags
• a coin counting machine
• cash on hand for every stall to create a float (with details of how much each stall started with to provide an accurate record of profits)
• sturdy bags (such as calico), two per stall (and marked with the stall’s name). The float goes in one while the other is used for cash collection
• authorised money-handlers who wear identification badges distinct from other fete-related badges
• a spreadsheet to track each cash collection (carried out every hour or two)
• Are there controls you can put in place to enhance safety?
  • Can you move your money collection area to a place with more light?
  • Can you remove money to a safe at more regular intervals?
  • Can you assign two volunteers to the task of cash collection?TIP: To avoid misunderstandings or mistakes, have two people collect the takings as well as count the money collected from each stall. Record the amount (if possible) on a sheet of paper and have both collectors sign beside the amount. This accountability will assist in reconciling the takings for banking and reporting and leaves no room for temptation or accusations.

As well as the regular collections, have a couple of ‘runners’ on standby for extra collections — your ride ticket booth may become uncomfortable with the amount of cash it is holding and would like it cleared out more often.

Consider whether you will need a security company to collect the takings at the end of the day. If collection is unavailable, does your bank offer a secure after-hours drop box? Is your school safe and adequate in the meantime? No treasurer deserves the stress and risk of carrying thousands of dollars over a weekend. 

Saving money

When we are fundraising for a target, it can be easy to focus on bringing money in and forget to take care of the money we already have. Never forget that a dollar saved is a dollar earned – the more careful you are with the money you have, the lower your fundraising target needs to be.

There are many ways to save money, and here are just a few:

• Have as many outlays as possible donated to save cash. Take a look at sponsorship to help source as much as possible that would otherwise cost you money.
• Have spending controls in place.  Do you do the ‘nice thing’ and approve all expense claims or do you have protocols for making sure spending decisions are strategic?  In other words, do you reimburse all claims without question or have you made it clear up-front that expenses need to be pre-approved according to certain criteria?  Over-enthusiastic convenors have been known to eat into profits with their decorations or prizes… It’s best to circulate a policy in advance.
• Do you have general financial controls in place?  The last thing you want is to be susceptible to fraud. Financial controls might not be a very sexy topic. I repeat… Not. Sexy. The only thing less sexy is having someone walk off with the hard-earned dollars because you didn’t have proper procedures in place to protect your cash. Remember, appropriate procedures are not about a lack of trust - they are about being smart and avoiding a potential problem. You also protect innocent volunteers from having ‘the question’ asked of them.

These ideas might not be as exciting as the ones that make us money, but they are vitally important to protect our volunteers and our hard-earned money!

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