Community groups run on trust. Members trust officials with their contributions. Funders trust the group with their grants. That trust lasts when the records are simple and anyone can follow the money.
1. Two signatures on every payment
Your bank mandate should need at least two officials to approve each payment. Ideally they should not be from the same family. Change the mandate as soon as officials change.
2. A group line, not a personal one
Collect contributions through a group Mpesa paybill, till or bank account, never an official's personal number. Personal lines mix group money with private money and make reconciliation almost impossible.
3. A receipt for every shilling in and out
- Issue a numbered receipt for every contribution or donation.
- Get a receipt for every payment. If a supplier cannot give one, write a payment voucher signed by the person paid and an official.
- Keep the receipts in date order, one folder per month.
4. A small petty cash float
Keep a fixed float, for example KES 5,000. When it runs low, top it up only by the amount of receipts handed in. Cash should always equal the float minus the receipts.
5. A one page report every month
| Line | Example |
|---|---|
| Opening balance | Bank, Mpesa and cash at the start of the month |
| Money in | Contributions, grants and other income |
| Money out | Grouped by project or activity |
| Closing balance | Matching the bank and Mpesa statements |
Share it at every meeting. A funder who sees this report before asking for it is a funder who comes back.
Five steps for this month
- Check the bank mandate lists current officials and needs two signatures.
- Move any group collections from personal lines to a group line.
- Buy a numbered receipt book.
- Set a petty cash float and count it at month end.
- Prepare the one page report for your next meeting.
Run a community group or CBO?
We set up simple books, signatory rules and member reports for community groups. We also prepare the annual accounts your members and funders ask for.
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