Most booster clubs are run by dedicated parents who want to support their children and their local organizations. However, any organization that handles money is susceptible to theft and fraud. Booster club theft and fraud is more common than you might think, so you should consider implementing safeguards to keep your funds safe and secure.
Below are a few measures you can take to ensure your booster club is protected.
Implement Checks and Balances
Checks and balances are a critical part of any organization, booster clubs included. When one person has total control of reporting and finances, it can be a perfect recipe for booster club fraud or theft.
Implementing checks and balances can be as simple as designating another officer to approve expenses or double-check monthly statements. You can also rotate the officer in charge of the finances and make your finances transparent to all officers in the organization.
Go Cashless
While cash is an easy way to transact with booster club supporters, it is very hard to track and can be difficult to defend against theft. When you enable digital payments, it not only makes supporting your club more accessible but also allows you to better track and protect against theft.
When you require digital payment, there is always a trail of transactions, so any fraud or theft can be easily uncovered. It also makes things much simpler when it comes time to prepare financial statements. Booster club software can help you seamlessly transition to cashless payments for your organization.
Track Sales
Concessions, merchandise, bake sales, and other forms of income are great ways to raise money for your club. However, sales from several sources can be difficult to manage and be open to fraud and theft if you do not implement a form of tracking.
Tracking your sales prevents fraud and theft and can help you optimize your processes and find out what’s working and what is not. Booster club software can help you track sales, promote your items, and expand your reach overnight. The software can easily show trends in your sales and help you maximize your funds year over year.
Consider an Audit
Many nonprofit organizations make a point of conducting financial audits once a year, and for a good reason. Annual audits uncover any unusual financial activity in the club. They are the best way to discover mismanagement of funds, including fraud and theft.
Audits can also give you insight into any inefficiencies and make you aware of improper accounting practices. If your club doesn’t have extra time or funds to spend on an audit, you can seek out a nonprofit accounting firm to see if they will do an audit for free or at a discounted rate.
Protect Your Booster Club from Financial Fraud and Theft
Running a booster club requires a lot of dedication and effort, so investing in additional measures to prevent fraud and theft may seem like extra work. Safeguards you put in place to preserve the integrity of the organization are well worth the effort and ensure that your club keeps every dollar it earns.
