||<>|| '''Rule number one:''' KISS - Keep It Simple Stupid! == Do we really need a bank account? == How many times has money from other volunteers needed to pass through your personal bank account? If it isn't a major inconvenience to you at this point in time then it's not a problem. If you are starting to feel that you need a better money management strategy, please continue reading. == If you really need a bank account == Minimalist structures often suffice. In Belgium and many other non-US countries, it is possible to open a bank account for an informal organisation without too much of a formal structure in place. You just need to clearly convince the bank of a few things with a small written statement: * this is a non-profit, not a money laundery * there is at least some process in place to decide who gets to be in charge of the money * the people with access to the bank account are not likely to change a lot In the US you will often need to incorporate with your local state government. In this case we recommend that you complete a registration for a "not for profit" corporation. The costs and currency requirements are often lower. It also sets you up for the infamous IRS 501c3 exemption should you desire. == Transparency earns you trust == You need trust from donors and volunteers, so publish _all_ your monetary transactions to the web: * anonymise this information only where needed * both cash & bank, incoming & outgoing transactions * should you need to keep this private, post information on how interested parties can request/review your documentation If you plan on using a website for transactions, consider working with your [[http://www.bbb.org/|Better Business Bureau]] or equivalent organization. == Accepting donations == * For some donors, it may be fiscally interesting to directly pay a bill for your LoCoTeam. This has the additional advantage of being easier for you to administer. * If someone wants to make a really big donation: * Always try to make a verifiable trail. Anything is better than cash. * Thank them: in person, on your blog, on the team list. == Spending money == * Draw a very clear line where you want to spend money in the near future. * Have a prioritised wishlist of things that would require funding to happen. ---- CategoryLoCoTeams