In a recent episode of The Boosted Volunteer podcast, BoosterHub founder and CEO Robin Eissler tackled a tough subject: booster club fraud. The episode, titled Preventing Fraud in Booster Clubs, showcases examples of club fund misuse, abuse, and fraud.
Eissler explained why she believes cashless booster club management is the best tool for fraud prevention while also relaying the importance of having a skilled and trustworthy booster club treasurer. Join us as we recap some of the highlights of this fantastic episode.
Real-Life Instances of Fraud
During the fraud podcast, Eissler covered a few examples of booster club fraud. In one, she discussed how booster club officers in North Carolina embezzled $200,000 in COVID relief funds. Eissler also told the story of when an Illinois booster club treasurer maintained two sets of books, which they used to steal $45,000 from their club.
Treasurer oversight, or a lack thereof, played a key role in both these examples. That’s why it’s vital that you have a trusted person holding the role of treasurer at your booster club. Even if you completely trust your treasurer, you should always implement a system of checks and balances to safeguard against errors and misuse.
The Role of a Treasurer in Fraud Prevention
Think of your booster club treasurer as your fraud goalie. They proactively look out for anything suspicious and alert the board to their concerns. A great treasurer also takes the lead on important financial tasks like:
That said, you’ve got to give your treasurer the support they need if you want to safeguard your club’s funds from the dangers of fraud. In addition to a checks and balances system that reduces errors, you need user-friendly accounting software and payment processing tools to consolidate all your finances.
Why Go Cashless?
Admittedly, it might be hard to take your booster club completely cashless. However, you should move away from cash and avoid handling it as much as possible to prevent fraud. Going cashless and managing your transactions with a unified booster club software will make life a whole lot easier for your treasurer, too.
From a funds management perspective, going digital simplifies transaction traction. You will have a digital record of every dollar your club earns, drastically reducing the likelihood of fraud.
If a bad apple does make their way into your club, they will have very little (if any) cash to skim from. Only trusted members of your club board will have access to account numbers and funding. By limiting access, you promote accountability and transparency while keeping the money you raise out of the wrong hands.
Want Your Club to Thrive? Find a Great Treasurer
Finding a great treasurer is pivotal to the success of your booster club. The right treasurer will protect against fraud and help you make the most of every dollar you raise. If you’ve already got a treasurer you trust, count yourself lucky, and make sure you take excellent care of this major asset to your club.
