501c3 Menu
Overview
Creating a New Organization
- Questions to Answer Before You Commit
- Creating Your Own Identity Overview
- Life Cycle of a Public Charity
- Incorporation of a Non-Profit Organization
Following the Rules
- Authoritative Guidelines Overview
- District Board Policy GE (Local)
- University Interscholastic League (UIL) Booster Club Guidelines
- UIL Brochure
- State Regulatory Information
- Federal Regulatory Information
Taking Care of Business
Day-to-Day Responsibilities
- Overview
- Accounting Procedures
- Bank Accounts
- Receiving Contributions / Donations
- Giving Contributions/Donations
- Facilities Use/Rental
- Financial Aid Guidelines
- Flyers
- Fundraisers
- Fund-Raising for Individuals or Families
- Insurance
- Mailing Address
- Members
- Membership Dues
- Money Handling Procedures
- Paying and Reporting of Workers (District Employees or Others)
- Raffles
- BINGO
- Record Retention
- Sales Tax
- Student Fines and Fees List
- Treasurer's Report
- Volunteering
Money Handling Procedures
-
Money refers to cash, checks, money orders, or cashier’s checks. The following are suggestions related to handling money to assist in ensuring proper accountability.
a) Receiving Money
- The person receiving the money while in the presence of the person turning in the money should count all money received.
- The person receiving the money should give a receipt to the person delivering the money (both parties should retain their copy of the receipt).
- Any checks received should be restrictively endorsed immediately.
- Post-dated checks should not be accepted from any source.
- Receipts should indicate whether cash, check, money order, or cashier's check was received; date of the receipt; and signature of person receiving the money.
IMPORTANT
If a money order or cashier's check is received, the receipt should indicate the total check amount; brand name of the money order or the issuing bank's name of the cashier's check; and the complete check or money order number.
If a copy of the money order or cashier's check is made, the inclusion of this additional information on the receipt is not necessary
b) Recording and Depositing Money
- Prior to depositing money, at least two people should count the money.
- All money should be delivered to the Booster Club Treasurer to deposit funds daily.
- Cash should not be maintained at a member’s home.
- Receipts should be reconciled with all money turned in and deposited.
- Money received should only be deposited in the Booster Club’s account(s).
- Deposit slips should be retained and reconciled monthly to the account.
c) Disbursing Money
- Require two signatures on each check.
- Do NOT sign blank checks.
d) Safeguarding Money
- Have people that handle money bonded. This protects against embezzlement, but not theft.
- Do not keep any money in an unlocked drawer, unlocked filing cabinet, vehicle, or other unsecured place.
- Do not store the records of the money received (i.e., receipts, copies of checks) in the same place as the money. If records and money are stored together and a theft occurs, the record of the money may be taken along with the money. Subsequently, determination and recovery of losses would be more difficult.
- Money received and not yet deposited should not be used for purchases, check cashing, loans, advances, reimbursements, or for any other purpose.
- All unused checks should be kept safe and secure at all times.
- "Blank" checks should never be issued and checks should never be pre-signed.
- The sequence of check numbers should be accounted for when reconciling the bank statement to the Booster Club's books.
- Issuing checks payable to "Cash" or to the "Sponsor" should be avoided. The IRS may examine these transactions in more detail than other transactions. If a check must be payable to "Cash" or to the "Sponsor," keep detailed documentation of the expense or use of the funds.
Last Modified on March 3, 2021