How to Manage Charity Fund

I am telling to manage charity fund because I am active member of a good charitable organisation from more than 12 years. So, I know, how did we develop the best way to manage charity fund. Second, charity fund is one of the sensitive fund in which there should not be any corruption because it is public money which is donated for mission not for personal interest. Following steps will be helpful for you, if you are operating any Not-for-profit organisation.

Steps to Manage Charity Fund:

1. Proper Record of Collected  Charity Fund 

Every donation should be collected through proper receipt. Original receipt should be given to donor and its copy should be kept for record. One daily basis, these receipt should be recorded in books of organisation. With this, we can know how much is our total charity fund? From where, we have collected? Every record should be the no. of receipt so, it will be easy for us  to verify. If you get money from online or through bank transfer, its information should be collected by visiting your online bank account. All these fund should be recorded in the books of organisation. For example, SBI allows his customer to donate directly from online account to reputed NGOs, so all these NGOs' account managers should be alert of this fund for recording the books.

2. Proper Record of Utilized Charity Fund 

When the volunteer will use the money of charity, it is his duty that he should get the receipt of his given payment. On this basis, every expense can be identified. After recording of donation and expenses, we can find the net donation fund. Actually, our cash book will tell us the balanced charity fund, if our source of money is only donation. But if we have other sources, we have other sources of income, we have to analyze the Charity fund account. Every fund which is withdrawal from this fund should be deducted from this fund. A proper authority sign is must for withdrawing.

3. To Prepare  a  Financial Statements

Every not-for profit organisation makes the statement of financial activities. It is just like the profit and loss account of any company. We show all the expenses in its debit side and incomes in its credit side. Balance will be the excess of income over expenses. Except this, organisation will make balance sheet and cash flow statement.

4. To Audit the Charity Fund

To audit the charity fund is also helpful to manage it. With auditing, many mistakes will come in our front. From these mistakes, we will learn a new lesson. By removing all these mistakes, we will manage charity fund better way.

5. Adjustments

Sometime organisation has to pay expense for special purpose. All these expenses should be permitted by working committee. If there is not any time to call the working committee, it is the duty of the volunteer or authority to inform about this expense. For example, an employee of any NGO faced accident on road. Director of the organisation has taken the charity fund Rs. 500000 and used for his treatment. It is his duty to inform the other working committee members about this emergency. After getting health insurance fund, this should be adjusted from charity fund.