Eureka Kids Christmas 2005

[bborum]

So there isn't a crunch next December, let's plan ahead. Perhaps Barb can open a Christmas account at the bank where donations can be deposited on a regular basis by those who care. $5, $10 or $20 a month by many would build up a good fund to pull from next year. Also, if interested, it could be transferred monthly from a person's account so it wouldn't be forgotten. Even a payment book given to interested persons would keep it in mind on a regular basis. Funds that would only be used for Christmas! Perhaps the same could be done for graduation gifts and scholarships.

[This message has been edited by bborum (edited 01-08-2005).]

[bborum]

Maybe we could even start a fund to help with the plumbing and electrical repairs and installations that are needed to allow Barb to prepare meals at the center again. Or better yet, any licensed electricians and plumbers willing to donate time and/or materials would be a bonus.

[JrtLover]

There is an Eureka Kids account..if anyone wanted to donate, they can just put it in there..no need for a seprate account..
We always need donations to keep the program going, not only at Christmas....
There is still a huge bill at Harts, we have electric that needs to be paid, trash pick up bills that need to be paid....etc etc etc

[bborum]

Comingling of funds deprives the donated funds being designated for a specific use. It also creates the probability of the funds not being available when that expressed usage is needed. Yes, there is a need of monies for operational purposes, however, that is not the purpose of the Christmas Fund. Setting aside pre-designated funds provides those who want to help with a specific need the knowledge that they will be utilized as requested. Also requires less fund management. A business will often have many accounts: one for expenses, one for payroll, one for taxes, one for savings, one for daily operations. A family also: checking, savings, vacation, Christmas, college, special purchases.

[JrtLover]

Well right now I think the idea is to keep Eureka Kids going....
we have 12 months to worry about next X-mas...
Right now we need to get bills paid to keep it running..if those do
not get paid, there will be NO x-mas for the kids as there will be NO
Eureka Kids..

[Barb Dunnam]

Brenda,

Thanks for your ideas.
However there is some things that need to be explained.
It is not comingling of funds to maintain one bank account. It is considered reasonable and prudent.
Within that account it is our responsibility to set our budget and accounts up at the office.
Quick Books Pro is the Accounting program we use.
I am sorry that you do not quite understand why we do the things we do. However, after 20 years of working in the nonprofit administration arena I can say with much knowledge and experience that this is the way it is done.

Quote from Brenda
Comingling of funds deprives the donated funds being designated for a specific use. It also creates the probability of the funds not being available when that expressed usage is needed.

With sound accounting that does not happen.
We have never ignored a donors purpose or intent. EVER.

Quote from Brenda
Yes, there is a need of monies for operational purposes, however, that is not the purpose of the Christmas Fund. Setting aside pre-designated funds provides those who want to help with a specific need the knowledge that they will be utilized as requested.

Money that is designated by a donor is used for that singular purpose. That is what restricted dollars and targeted giving is about.

Quote from Brenda
Also requires less fund management.
Sorry Brenda but.......
It requires many bank accounts to be managed and reconciled each month. Increases the possibility of misdeposited funds.
Requires more time at the end of the day and more deposit and checkbooks to be managed.

Quote from Brenda
A business will often have many accounts: one for expenses, one for payroll, one for taxes, one for savings, one for daily operations.

Brenda,

Large corporations perhaps or people with time to do that. The norm is an accounting program that allows you to do that in house.
Quote from Brenda
A family also: checking, savings, vacation, Christmas, college, special purchases.

Brenda,
When we start a full blown Capital Campaign or begin an endowement that is when we will have multiple accounts. Not a moment before. Those are prudent reasons to begin a new account.
Also if a Federal Grant or funder specifically requires the money to be kept in a seperate bank account. This is normally the case with Large (over 100,000) grants or donations. In that case a portion of that money is set aside for that purpose.


People can easily donate to Eureka Kids at our Bank account at Community First.
However, The problems with direct deposits to a account without our knowledge are as follows.

1. We have no way to know who to thank for the donation.
2. We have no way to account for it properly in our bookeeping.
3. Its just not sensible.

We do have annual Back a Kid sponsorships.
we talk about them quite often and cover the community with information about it at least twice a year.

Direct deposit from your checking accounts is great. Once you have filled out the proper forms we have for such donations at Eureka Kids so that you can write it off on your taxes and have a reciept and we can properly earmark the funds if you have that desire.

It costs about 600.00 per youth each year to provide programs and services.
The costs to oversee all those separate accounts would drive up the costs.

So in closing. We keep our books according to normal and prudent accounting principals.
All our checks require two signatures. I never sign checks.
All of our funds and expenses are based upon an annual budget set by our Board of Directors.

We do have openings on our board. Anyone who has the desire to make a difference in the lives of our kids please apply to join our board.

For more information please call me 253-8006.




[This message has been edited by Barb Dunnam (edited 01-08-2005).]