Spring has sprung and many nonprofit organizations have been busy planning their summer and fall fundraising events. Planning is key to a successful event. While dates, location and activities are important parts of planning, considering how the money is raised, secured and recorded is as crucial, yet often overlooked.
A good way to begin is to get together with key staff or board members and brainstorm all the ways that money will be collected before and during the event. Asking the questions who, what, where, when and how can be useful in developing proper cash handling. For example, if tickets are sold before the event, decide who is going to sell the tickets and how many tickets each person will be responsible for selling. Consider numbering the tickets and keeping records of how many each person sells and returns. This not only keeps track of where the tickets are but also gives the event coordinator an expected revenue estimate and provides useful planning data for the future.
Remember to print quid pro quo contributions disclosures on the ticket, if applicable. A quid pro quo disclosure lets the donor know how much of the ticket price is for goods and services, such as the price of a meal. It also tells how much the deductible contribution is.
If your event will have several opportunities to donate such as raffles, auctions or pull tabs, treat each opportunity as a separate event. Decide who will be in-charge, how the money will be collected during the activity and how volunteers will make cash drops, if necessary. Consider creating some cash handling policies before the event, and educate volunteers and staff about the expectations of how to treat cash. This brings awareness to the importance of securing the cash and is a deterrent to theft during the event.
Making arrangements to have a secure place to count the money is also essential, and money counting should always be under dual control. Event cash should be deposited in a bank immediately after the event. Each activity should have a separate cash box, and there should be start-up cash in each to make change. Additionally, ensure the organization has complied with local and state laws and permit requirements. Also, consider buying liability insurance to cover the event. At the end of the event, it is a good idea to have a debriefing meeting to discuss any items or procedures that could improve the event while it is still fresh in everyone’s mind.
Carefully planning and educating staff and volunteers on clear policies and expectations as to how cash will be handled before the event takes place and during the event will give the necessary tools to execute the event seamlessly, eliminate surprises and provide safeguards against theft.
Please contact us for further information or ask about ways to safeguard cash during fundraising events.
