Our checking account is at the local Educational Credit Union. They offer us free checking and we earn interest on it as well. The amount is a little less than our savings account but it might add up to $2.00 a year. I know every school is different, but speaking as a treasurer, I have trouble getting people to give me the receipts for one account let alone trying to keep track of a second. I guess if we had a huge cushion past our budget, I would consider transferring it to savings but I would also see if I could put that money to good use. If your group is certain they need to have a higher interest yeilding account then I would consider switching to that bank to try to simplify the situation as much as possible.
The irony of commitment is that it’s deeply liberating-in work, in play, in love. The act frees you from the tyranny of your internal critic, from the fear that likes to dress itself up and parade around as rational hesitation. To commit is to remove your head as the barrier to your life. --Anne Morris
As I read the other responses, this question came to me: If you have this extra money, why would you be running another fundraiser at all? I mean that maybe instead of opening another account, why not give parents a break and not run the next scheduled fundraiser?
Thanks for all of the good advice and thoughts. The money has just accumulated over time; this is an issue that will be addressed at the next board meeting.
It makes good sense to keep the accounts at one bank; I'm not sure what went into the decision to open the savings account at a different bank. I'm just very cautions about money, especially in a volunteer organization where the treasurer changes every one or two years. Thanks!
I second Metzy and Tim, but ask another question: Is this money actually budgeted for PTO programming/purchases, or has it just accumulated over time?
I know our PTO currently has a pretty large balance, but it will be depleted very soon as we pay off our fundraising company, and fund the projects we have budgeted for the next couple of months. In our case, I'm not sure the little bit of interest we would earn would be worth the back/forth cash management between two accounts.
If your PTO has a large enough unallocated balance to justify a savings account, you might want to ask why the money isn't being spent. If, on the other hand, the extra money is allocated for a long-term project like a playground, then putting it in an interest-bearing account sounds like a good idea. I'd stay with one bank, though, so you can get a consolidated statement.
Hmmmm... why two different banks? Seems like that adds a good chunk of the complexity here.
You can't do a literal "transfer" between two different banks. It's actually a withdrawal from one and then a deposit in another (or a check written from one account to the other). For that reason, i think -- if you use two difft banks -- you have to keep the two signer rule in effect.
But if you can set up two connected accounts at one bank -- a money market and a checking -- then I don't see a problem with one person being allowed to manage transfers (not withdrawals).
It's not a lot of money, but if you routinely have $10,000+ in your account, then keeping much of that in an interest-bearing account certainly makes sense. Just don't see why two difft banks would make sense.
TWO SIGNATURES ON ALL ACCOUNTS is probably how your bylaws read. I hope. Shoot, I even got nervous when you said the accounts were at different banks... lol...
You are definately thinking this through. It may be a little extra work (OMG, I want a job where a little extra work means signing my name on two different things...lol), but isn't it her job to sign checks and be 'keeper' of the accounts? Same goes with the second signer. You are not asking them to do extra work! You are asking them to do their jobs. Period. If they want a second account, they have to figure there is going to be 'a bit' more to it...
As for two accounts: it just makes good business sense (and your group IS a business after all) to put extra money in an interest bearing account, especially for those big ticket items that require several years to acquire, like say a playground or computer lab or such.
If they think only one signature should be used to transfer money, make that one signature the principal. Better yet, print out some of the embezzlements threads from this site. There are quite a few. I know because our group is one of those stories. No matter how nice, no matter how trusted, TWO SIGNATURES FOR ALL BANK TRANSACTIONS SHOULD BE A MUST!!! Trust me. I know 40,000 reasons for this to be a 'must' practice.
