Bank Accounts

All Friends of Library groups need to control their cash.  They should be able to make deposits and pay bills easily and keep their funds safe.  So how do we go about setting up our banking?  Read along for some ideas and notes that can make your efforts easier.

Type of Account
Banking products have changed over the last several years.  Being a 501(c)(3) non-stock corporation, means that you may qualify for 'special checking account' than what is available for regular businesses.  The account needs to be able to accept large amounts of cash deposits (you know those book sales), be able to accept deposits with many checks (you know those membership renewals) before incurring service charges.  Verify the minimum balances that are required, and make sure if you have another account, that all the accounts are linked together so that all your balances are counted for the minimum balance.

Number of Accounts
Each group is different and depends on the type of fund raising your group is involved in.  I would say at a minimum, a checking account and some type of savings/money market.  Both of these accounts should be with a bank with FDIC insurance and the combined balances should be below the allowed balance.  You can estimate the amount of coverage at the FDIC EDIE Estimator.  It is a great little tool. 

You may consider having an account that you use for on-line banking, such as a PayPal Account or one that is used for your on-line payments from book sales.  If there is such an account, the Treasurer should prepare proceedures and review these procedures with those involved so that all the information can be recorded in the groups financial records.

Signatures on the Account
Generally there should be at least two signers on the account.  First being the Treasurer, second could be the President, Vice President and or Secretary and even then, there may be the need to have a third and fourth name on the account.  This can become cumbersome with the stricker banking regulations.  Generally all signers need to be at the bank at the same time to sign on the account.  Keep in mind, have more than two signatures may help when the individuals are away on vacation or out of town. 

Next would be to determine how many signatures would be required to negoitate a check.  Some Friends groups feel that every check needs two signatures.  I would suggest - that depends on your group.  It is my feeling, that checks over a certain reasonable dollar amount should require two signatures.  However you decide, your check stock should say that the check is only good with two signatures over a $XXX amount.

Electronic Transfers and Electronic Services
Having the ability to move funds from one account at the bank to another, example from checking to the money market is a great help in managing the funds of your organization.  Being able to view your account on-line is a great convenience along with obtaining a copy of your bank account statements.  If electronic services are set up, be sure to write down the passwords and keep them in your Treasurer's Handbook.

Night Deposit Box
I spoke about this at a seminar recently.  Having a key to the night deposit box is quite important to your group.  Having a member take home cash to keep overnight is not a great business practice.  It puts the organization at risk and it puts your member at risk.  Most likely this risk is not insured.  Therefore if there was a loss, the organization would lose their hard earned donations and revenues, let alone how your member would feel.  Everyone would sleep much better if you make a deposit at the end of your event!

Blank Check and Deposit Stock
So what do you do with the that big box of  blank checks and deposit tickets?  This is a prime example of having a file drawer at your library for the use of the Friends that is under lock and key.  Keep what you need on hand, and when your supply gets low, replenish the supply.

If you are using computer checks, having an old fashion checkbook with manual checks is another great convenience.  I've used a wallet size.  It works well when you need to write out checks at events or when the other signers will be taking care of business while you are away.  I recommend that the checks have carbon copies that way you can have a copy when you get back and the signer won't have to keep lots of records in your absense.

Meet with your Banker
Depending on your group, you may wish to invite your Banker to your Finance Committee meeting.  Again, possibly on an annual basis, give a call or stop by and see if there are any new products that the bank is offereing that can make your organization run smoother.

Policy/ Board Minute Update
Once you have your banking in order and have decided on the number of accounts, the banking institution, limits and signatories, etc., I strongly suggest that this information be read into the group's minutes on an annual basis.  Of course, if there are changes during the year, make sure that those changes are read in also.

If you open accounts and close accounts - that action should be approved in advance by the Friends Board of Directors and be in their minutes.

Conclusion
Once you have your banking organized, you will be sitting just fine in keeping your organization's finances in order.

Members of the Finance Committee

At our seminar - we talked about how to get members to this committee - so here are some additional thoughts to obtaining members to your Finance Committee.

What about the past Treasurers of your group or of other civic groups in town?  I say why not ask!  These individuals have all ready been schooled in the role of a treasurer.  Most likely they are not looking to be a treasurer again, though they like to participate in more of a consulting role on the committee.

Do you know your banker, accountant, attorney, insurance agent?  These professionals and others know professionals in your communities and may be able to make recommendations/introductions to individuals that would love to join your committee.

Have any ideas to share?  I would love to hear from you.

FOCL Seminar

Wow - what a day! Even with the damp weather we had, over 100 folks attended the FOCL - Friends of the Connecticut Libraries seminar today.


Our first speaker was Timothy Cole, inspirational as he discussed the various generations of individuals that we have. Like the Gen X, Gen Y, Baby Boomers to name the younger bunch. He disucssed the differences that each generation has and how "we" as Friends Groups need to address each (in a general way) when we are looking for new volunteers.
After his talk, we split into two group. I was the speaker for "Things your Treasurer Should Know" and Carl was the speaker for "Used Book Sales in Connecticut 2009". While I didn't get to hear Carl's talk, his handout is remarkable. He had gathered surveys for more than 50 friends groups. The survery cover days of sale, pricing, category breakdown, bag sales,

New Members - New Volunteers?

So you are in charge of the Finance Committee.  You've made contact with a local CPA, attorney, and your group's insurance agent and banker.  Those professionals agreed to meet with you and your committee once a year.  So how do you go about getting other volunteers?

There is various way to get new volunteers involved.  First - you need to quantify the duties of the committee, the time requirements such as length of meeting and number of meetings.  In order for you to be successful, seeing the future of how you wish the committee to work is a first.  Anyone who is willing to volunteer will want to know how much is expected of them.  Be clear; have it written out so there will be no surprises or disappointments. 

Annual Duties

Being part of the Finance Committee is a great place to learn about the goings on of your Friends group from the financial perspective.

Once a year, the chair of the Finance Committee should pull out all the financial policies and procedures and dedicate one meeting to review the policies with the members of the committee. Then upon and changes and recommendations of the committee, record them into the minutes of the organization.

Welcome to Friends of Librarys

Welcome to everyone stopping by.  This blog is for you and is being created so that we can have some discussions and debates and sharing great information that we all have.  It will also categoriez information so YOU can look back if you need additional information.