Cash & Non Cash Handling Procedures

Cash handling procedures and money management are important to protect the organisation from fraud, theft or embezzlement, to protect members of L’Arche Ireland or volunteers from accusations of dishonesty and to assure donors that their donations and gifts are used for the purpose for which they were given.

In L’Arche we appreciate the time and effort that all our volunteers put into the fundraising activities. That is why we have tried to reconcile the fundraising practices within the organisation with the formal procedure, in order to insure the current document is both compliant and relevant.

We recognise the vital importance of ensuring that all the money we receive is accounted for. However, we also realise that for practical reasons, the way to acknowledge individual donations in each case might vary.

That is why we have introduced a distinction between one-off donations within the frame of an event (such as during coffee mornings and church gate collections) and other one-off donations. For this document, the former will be referred to as “donations during events”, whereas the later will be referred to as “donations”.

General

• In accordance with the 2009 Charities Act, it is required that a minimum of two adults count and record the proceeds from an event.
• Cash is counted in a secure environment and held in a secure place until it is banked.
• Where at all possible, donors should be encouraged to make donation by cheque, bank draft or online donation.
• Income summaries should be made at the point of counting for reconciliation with banking details at a later stage.
• Deductions must not be made from cash received. Expenses must be met (where previously agreed) by the charity after receipt of the cash. Receipts to be provided.
• A receipt is given to the donor recording the amount of the donation, the donor’s details, the source of the donation and the purpose for which the donation is being made (if relevant). If the total amount is not known at the point of handover, this should be recorded on the receipt as an estimate or noted as ‘not yet counted’.
• Acknowledgements are issued, where requested and where practical, to third party donors such as fundraising event sponsors. This serves to ensure that the donor receives official confirmation that their donation arrived and will be used for the purpose the donor intended. Depending on the amount, acknowledgements might vary. i.e. mentions in the Facebook page, letters, public mentions during and after the event.
• Records are made of all donations including taking note of those made for specific purposes to ensure donors’ wishes are met.
• If the donation cannot be applied for the desired purpose nominated by the donor, L’Arche should immediately communicate this to the donor and discuss satisfactory alternatives.
• As much as is practically possible, all donations should be acknowledged. Exceptions include street collections, church gate collections etc.  Standard Thank You letter available from L’Arche Ireland Fundraising Manager.

Banking

• Wherever possible, cash is to be banked immediately. Where not possible, cash should be kept in a sealed container, in a secure, locked location.
• Cash is never to be left unattended or in an unattended location while in the events. Once the event is finished, cash should be counted in a secure environment and held in a secure place until it is possible to bank it (not more than 10 days after the event).
• Ideally for safety reasons, two people should bank cash donations.

Reconciliation

• ASAP reconciliation is to be made between cash banked and bank statements by the Fundraising Manager/Community Administrators. All to be recorded on a bank reconciliation spreadsheet. There is a copy of the template used by Fundraising Manager at the end of this document (Appendix 1).

Cash handling at events

Planning –

• If you are planning on an event that requires the purchase of tickets, if possible endeavour to sell them prior to event to reduce cash handling demands at events.
• When fundraising by selling tickets, price them in a manner that will minimise cash handling demands (round figures i.e. €10, €20 etc.). Tickets should be pre-numbered, so sales and takings can be reconciled.
• Although there might be several collectors, one person in the event should have overall responsibility for managing cash handling.
• Consider ways to hold cash safely at events – such as cashbox, money belts etc.

At event –

• Issue round quantities of tickets / programmes to sellers who should sign for receipt of same.
• Unsold tickets / programmes to be returned and reconciled with cash returned from seller.
• Discrepancies to be investigated immediately.
• To avoid sellers accumulating significant sums of cash, make arrangements for pre-designated collectors to collect cash at agreed times and locations.
• Collections to be recorded and signed off by seller and cash handling manager. If not practical to count cash, it should be recorded collection has been made and evidenced by two signatures.
• At end of event all final monies including floats to be collected and recorded.

Managing supporters

Donor activities –

• When possible donors are to be encouraged to make donations by cheque / bank draft or online rather than giving cash.
• Donors are encouraged never to make a cheque payable to a named individual.
• Donors should be discouraged from sending cash donations through the post.
• Advise donors to send donations to the L’Arche offices only.

Fundraising on behalf of L’Arche –

• Anyone considering fundraising on behalf of L’Arche Ireland should let the charity know in advance as we will be able to provide support and assistance.
• It is the responsibility of the event organiser to ensure that they have the appropriate insurance cover for their event. If in doubt contact the L’Arche Ireland Fundraiser, L’Arche Ireland.
• Where a donor conducts a fundraising event without prior notification to L’Arche, they should be thanked but also requested to inform L’Arche in advance of any future activities

Relations with Volunteers –

• Volunteer cash handlers are to be given clear instructions from which to work – these will be based on points referenced above
• All volunteer cash handlers have appropriate documentation from the charity authorising them to handle cash (such as a letter of authorisation). If a public street collection, the main organiser/volunteer coordinator should have a copy of the Garda permit. All volunteers should know where it is and have access to it if required.
• If possible, volunteer cash handlers should be supervised by a L’Arche Ireland staff.
• Try to verify the competence and integrity of volunteer cash handlers in advance; where possible seek references
• Where children (aged 14 to 17 years inclusive) are collecting money (for example, sponsored swims, bag-packing etc.) they should be accompanied at all times by an adult, and the relevant documentation (sponsorship cards) in regard to pledged monies should be available for inspection by the sponsors
• It is illegal for children under 14 years to take part in cash collections (Street and House to House Collections Act 1962 as amended)
• Ensure that adequate insurance cover is in place and that cash handlers understand and follow the conditions of the cover

Non cash donations

Non cash collections may comprise cheques, postal orders, credit card details, gift cards or other means. They may be handed over in person at events or received through the post.

Handling postal donations

• Post should be opened in the presence of two staff members who are independent of the person responsible for banking the cash
• All post is recorded at point of entry with any cash evidenced by two signatures (cash includes cash, cheques, drafts, postal orders, credit card or gift card donations)
• Any cash donations are removed and held in a secure location until they are banked
• All donations are acknowledged within an agreed timeframe, ideally within 48 hours (with an exception during particularly busy periods)