BoosterHub

How Do I Prevent Fraud and Theft in My Booster Club?

While booster clubs are almost always made up of honest individuals who are genuinely trying to help support kids and their schools, unfortunately there are exceptions. A well-run organization, no matter what size, should have fraud and theft preventative measures in place.

Here are a few ways you can help prevent fraud and theft in your booster club:

Adopt Checks and Balances

No single person should be in charge of every aspect of finances in a booster club. Implementing a system of checks and balances ensures that multiple people are involved, increasing the transparency of the finances. You can implement checks and balances by:

Designating financial reviewers
Requiring secondary approval for transactions
Implementing a rotating schedule for finance management
Holding random reviews

Another way to implement checks and balances is through booster club software that includes a cash tally to reduce fraud. Software can simplify financial management and also safeguard the club’s hard-earned cash.

Get Annual Audits

Many large organizations incorporate annual financial audits into their yearly schedule, and for a good reason. Annual audits allow a neutral third party to examine the balance sheet and make sure that everything is on the level.

A financial audit can reveal if any money was misappropriated or if anything is unaccounted for. If a problem is revealed, an auditor can usually help you get to the bottom of it. An auditor can even discover unusual patterns and alert you to inconsistencies before any cash goes missing.

If the club doesn’t have the resources to pay for an annual audit, try contacting a nonprofit accounting firm. They may be able to offer a reduced rate or even provide the service for free. You may even be able to find a parent with an accounting background who can volunteer their time to do a soft audit.

Consider Going Cashless

Managing cash is a challenge in every organization. Cash is difficult to track and is highly susceptible to fraud or even simple mistakes like misplacing an envelope. Going cashless is a simple way to ensure that every dollar going in and out is secure and has a record.

Aside from preventing fraud and lost cash, other advantages of going cashless include:

The ability to track revenue and expenses
A reduction in the time spent on financial management
Ease in setting up donations via an online source
Time savings during tax season

A booster club accounting software platform can be transformative in the organization and relieve a lot of pain points in financial management.

While some organizations worry that going cashless will hurt the bottom line, that is not the case in today’s digital world. Many donors actually feel more comfortable donating when there is a digital trail and a receipt.

Supporting a Cause While Being Mindful of Security

Booster clubs are a wonderful way to support kids and schools, and every dollar counts. Whether you are preventing fraud and theft, or simple mistakes in accounting, having safeguards in place ensures that your hard-earned donations are accounted for.

It doesn’t matter if you’re implementing checks and balances, auditing, or investing in booster club software — taking the time to prevent fraud is well worth the effort.

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Ways to Fundraise for a Booster Club

Fundraising is perhaps one of the most important functions of your booster club. However, it can be tough to build momentum, especially if you are new to fundraising as a whole. You can also get stuck in a rut and feel like you are running the same two or three events on repeat. That’s when it’s important to mix things up to keep club members and donors engaged, ensuring a steady stream of support for your student-athletes. With that in mind, here are a few ways to raise more money for the student-athletes you support:

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Non-Profit Donation Receipt

Whenever someone donates to your club, you must ensure that you send them a clear receipt so they can take advantage of their tax deduction. These receipts are your club’s way of saying, “Thanks for being on the team,” and they’re essential for keeping records organized. Providing a timely and well-documented receipt also makes your club appear professional and organized. In turn, you’ll be able to more easily build trust with donors and encourage them to give again in the future. After all, donors need to be confident that you’re acknowledging and managing their contributions properly. On that note, here are a few tips to help you create compliant receipts:

Booster Club Best Practices

Booster Club Rules

You certainly wouldn’t sign up for a sports league without knowing the rules of the game, so why would you attempt to run a booster club without a clear set of guidelines? In a booster club, the rules take the form of bylaws, which are policies and procedures that are vital in keeping everyone on the same page, helping to avoid misunderstandings, and ensuring that each member understands their part in supporting the club’s mission. In some cases, these bylaws will spell out who can and can’t be members, as well as who is eligible to serve on the board. Some states even have standardized playbooks that you need to follow. The University Interscholastic League (UIL) in Texas, for instance, has a playbook of its own, covering specific bylaws for booster clubs that support school programs. In any case, here are some tips for ensuring everyone in your booster club plays by the rules so you can have a productive year: