How should a Treasurer handle fundraising events finances?

• A. Plan a separate event budget, track income/expenses, manage cash, and reconcile with overall statements.
• B. Merge event funds with general funds immediately
• C. Postpone recording until year-end
• D. Only rely on external accountants

Answer: (A)

Handling fundraising events finances requires clear separation and timely tracking to maintain accuracy and accountability. The Treasurer should create a separate event budget, record all income and expenses as they occur, and manage cash securely so receipts and disbursements are clear and traceable. Regularly reconciling the event's financial records with the organization’s overall statements ensures the event’s performance is transparent and ready for reporting, audits, and donor transparency. This approach also helps honor any donor restrictions tied to the event and supports strong internal controls over cash and spending.

Merging event funds into general funds right away makes it hard to see the event’s actual performance or honor restricted funds. Delaying recording until year-end prevents timely, accurate reporting and increases the risk of errors. Relying solely on external accountants can weaken internal controls and accountability, and may not provide timely, actionable information for decision-making.