How Do I Prevent Fraud and Theft in My Booster Club?
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:
Designating financial reviewers
Requiring secondary approval for transactions
Implementing a rotating schedule for finance management
Holding random reviews
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:
The ability to track revenue and expenses
A reduction in the time spent on financial management
Ease in setting up donations via an online source
Time savings during tax season
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.
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Does My Booster Club Need to Collect Sales Tax?
When managing a booster club, one of your top goals is generating as much revenue as possible for the athletic team or fine arts group you are supporting. One way you can maximize your revenue is by taking advantage of any price breaks and tax exemptions offered in your state. This brings us to the topic at hand: booster clubs and sales tax. Sales tax is a fee imposed by state governments on transactions involving services or goods. Because these fees are primarily imposed at the state and not the federal level, tax percentages vary from state to state. So does your booster club have to collect sales tax? Let’s explore.
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BoosterHub – The #1 Booster Club Software
In an October 2022 press release, Yahoo! Finance recognized BoosterHub as the #1 booster club software in this emerging industry. Since it launched, BoosterHub has experienced championship-level growth. In just nine months, BoosterHub surpassed the $1 million gross merchandise volume threshold.
BoosterHub’s overnight success speaks to the fact that the dynamic platform fills a long-standing void in the school booster club space. As of the press release, BoosterHub has more than 5,000 members and facilitated over 45,000 transactions. Our platform has an incredibly low single-digit churn rate, which is undoubtedly due to the fact that our customers are extremely satisfied with the product.
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Does My Concession Stand Need a Food Service License?
A concession stand is one of the most effective ways for your booster club to raise money for sports teams. However, if you have never run a concession stand before, you undoubtedly have tons of questions about it. Running a successful concession stand is not quite as simple as it may appear. In order to do so, you need to familiarize yourself with food service requirements, explore state tax laws, and much more.
The good news is that there are great resources to jumpstart your efforts. In addition to creating this beginner’s guide, the team at BoosterHub frequently tackles important concession-related topics. In this post, we take a deep dive into food service licensing requirements for concession stands. Whether you are already running a successful concession stand or have recently taken over these responsibilities for your booster club, this playbook will help you comply with state and local guidelines.