Why missing receipts is a problem for nonprofits (and how to fix it)

A recent question on MoneyMinder’s Facebook community stopped a lot of treasurers in their tracks. A new treasurer wrote that one of her board members frequently used the nonprofit’s debit card, but never submitted receipts. The treasurer trusted that the purchases were legitimate, but wasn’t sure if she still needed the documentation. Her instinct was right: she definitely did need receipts.

Nonprofits need receipts

Receipts are required for every purchase made with your organization’s funds. That’s true whether someone paid out of pocket and needs a reimbursement or they used a group debit or credit card.

Ultimately, it’s not about trust or lack thereof — it’s simply a best practice and part of a treasurer’s fiduciary responsibility. Without receipts, your organization can’t prove the money was spent appropriately, can’t accurately record the expense, and can’t defend itself if questions arise later. This standard applies to a $25 purchase the same as it does to a $2,500 one.

What qualifies as a receipt

A receipt should include the date, vendor name, and an itemized list of what was purchased, along with the total amount. Sometimes people assume that when they purchase something with your organization’s card, your bank statement will serve as sufficient documentation. But the statement only shows that a purchase occurred, not what was bought.

Digital receipts are perfectly acceptable and often easier to manage. Encourage board members to forward email confirmations as soon as a purchase is made.

Going paperless with receipt photos

For in-person purchases, a simple solution is to snap a photo of the receipt immediately. A photo stored in the cloud is easier to find later (plus it won’t accidentally get run through the washing machine).

If your group uses MoneyMinder, board members can upload receipt photos directly through the reimbursement workflow. The receipt attaches to the transaction record, so when you’re reconciling later, everything is already in one place.

How to get those receipts

Nagging board members about their receipts can feel awkward, but it protects them just as much as it protects your organization. A brief written policy in your board handbook can help remove ambiguity and make enforcement less awkward. Some treasurers set a 30-day deadline for receipt submission.

If someone consistently ignores the policy after being directly asked to follow it, it’s appropriate to involve board leadership. As one commenter noted: “If she fails to submit receipts, then it’s time for her to turn in her card.”

Ready to give digital reimbursement a try? You can:

1. Create a custom workflow that you define.
2. Share the reimbursement form link.
3. Review and approve or deny the reimbursement requests.
4. Record the reimbursements in your bank register.

Experience the tool alongside all of the features of MoneyMinder with a free 30-day trial. It’s just $299 per year after that.