Following is a transcript of this podcast episode, with audio/video below.
Welcome to the Two-Minute Treasurer’s Tip Podcast! I am your host, Cyndi Meuchel, co-owner of MoneyMinder, where our goal is to make your life as a volunteer way easier. That’s why we share these tips and tools, but keep in mind, every group operates differently. So I very much encourage you to take what works for you and disregard anything I say that may not be helpful.
Today I’m answering the following question: My group has a debit card. How can we ensure it’s used only for legitimate purposes? So, Lauren writes, “I have been newly elected as treasurer for my group. In looking through past records, I see we have a debit card. This seems hard to control. Do you have any advice for ensuring it’s only used for legitimate purchases related to our group?”.
Oy. Good question, Lauren. So while debit cards for non-profit groups are way more convenient than writing a check, I understand, they give me pause as well. Debit cards and credit cards require exceptional oversight on your part and if they’re linked directly to your bank account you’re basically giving the person holding the debit card full access to all of your funds. If the pin is also being shared, this creates a huge liability for you as a treasurer because you’re responsible for the funds.
So maybe instead of a debit card or a credit card, you might consider using a refillable bank card instead. Something that’s completely separate from your general bank account. This way you could just add money to the card as you need and by doing so you can create a preset spending limit on those cards, giving you far more control.
Regardless, you’ll want to have really strict rules around the use of these cards and you’ll want to get detailed receipts for every single purchase. That way you can make sure the funds are being spent only on items related to your group, making sure no personal expenses are accidentally or intentionally getting thrown in.
That’s it for today. Thanks for listening, and if you have a burning question you’d like answered, just email me at [email protected] My name is Cyndi Meuchel and this is your TwoMinute Treasurer’s Tip for today.