Managing money
Raising funds and paying bills inevitably involves holding and managing money. It’s important to do this in a way that keeps a wall between the repair café’s funds and your personal finances, and which keeps track of what comes in and out.
What follows is not legal advice and should not be relied on for legal purposes. We strongly recommend you consult with a lawyer to find out what is right for you and what your obligations are.
Budgeting and financial management
Early in the life of your repair café you should set up processes for managing its money and keeping it separate from yours. Australian charities have legal obligations around managing money, and there may be others imposed by the legal structure you choose. Check with your lawyer about what the law requires of you.
You will also want to develop a budget to ensure you have enough money to do what you need to do, when you need to do it. If a member of your organising team has financial experience, they are a good choice to lead this.
Finally, consider who will be authorised to handle money, and how much (if any) they can spend without approval from another person or the organising team. This is often called a “delegation”. It is good practice to attach delegations to specified roles for specified purposes, rather than a blanket delegation to a specific individual.
Record-keeping
Especially when money is involved, accountability for what has been done is as important as permission to do it. Your records are your tool for looking back over past actions and checking that they were done properly.
Your accountant can give you guidance on what records you are required to keep of financial transactions and for how long. Grants or other external funding may also place specific requirements on how you account for the use of grant funds.
It is always a good idea to record at least:
How much was received or spent
Where it came from, or where it was spent
Who handled it
For expenditures:
The purpose for which it was spent: “Bunnings” is a bad description; “4x extension cords for use at repair café” is a good one
On what authority it was spent: existing delegated authority, a specific purchase authorisation, or some other reason
For receipts:
Any conditions attached to how the money can be spent
What was done with the money: added to petty cash, deposited in the repair café bank account, and so on
How SEE Change can help
Groups operating in the SEE Change network gain access to SEE Change’s bookkeeping and money management services. We can help you with banking and financial reporting, as well as provide guidance on staying in compliance with the law.