posted June 3, 2016
Fundraising Cash Collection Tips and Tricks
by Mirah Rangaswami, CPA, Staff Associate II
It is time to host your organization’s upcoming fundraiser, and you have thoroughly planned all steps to have a successful event. Is there anything you are missing...?
One common pitfall often encountered by organizations is failing to establish proper cash collection procedures for the end of an event. Cash handling is inherently prone to higher risk; however, there are steps you can take in order to minimize the issues. Always remember these five important recommendations to ensure a successful event from start to finish.
- Consolidate collection points.When dealing with cash transactions, fewer collections points are better. If having only one collection point is not possible, be sure to use sequentially numbered tickets to keep track of how many have been sold.
- Receipts.Always create a paper trail for cash transactions. At the end of the day, the number of sales must match your cash receipts. You will need to keep an accurate listing of profits to track your organization’s fundraising success.
- It takes two.Cash handling must always be done with at least two or more people present. It is easy to miscount or overlook items when handling large amounts of money. At minimum, two people should tend the cash box as well as be involved in the cash counting process. After the cash has been counted, have the individuals sign a form that verifying how much money has been collected.
- Deposit timely. Cash should never sit on site for a few days. If cash cannot be deposited immediately after the event, it should be locked in a secure safe overnight and deposited the next available morning. Designate an individual to be responsible for this procedure prior to the start of the event.
- Simplicity is key. While in some cases more is better, when dealing with cash collections this is not always true. Limiting the number of hands cash crosses decreases the chance of error. Only accept cash payments, while politely declining IOUs or any other promise for future payments, unless there is a clear and well documented process for monitoring promises to give.
Adhering to these five recommendations will help your organization be on the right track for a well-executed fundraiser.Remember to plan ahead and assign roles and responsibilities to specific individuals.Having all involved parties aware of these procedures will avoid any last minute hiccups.You are now ready to properly wrap up the end of a successful fundraiser!
The content of these pages is for general information purposes only and does not constitute advice. Heinfeld, Meech & Co., P.C. tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents.