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:
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:
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.
