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Template · Finance

Petty cash and card policy

A board-approved policy for a small petty cash fund and charity debit or credit cards: who holds them, limits, receipts, monthly review and misuse.

Download for Word (.docx)Rich Text (.rtf)Plain text (.txt)

Three editable formats: Word (.docx), Rich Text (.rtf) and plain text (.txt). Reviewed October 21, 2026.

How to use this template

  1. Download it as a Word file (.docx), which opens in Microsoft Word, Google Docs, Pages and LibreOffice, or as Rich Text (.rtf) or plain text (.txt). All three are editable.
  2. Fill in every blank. Blanks are in square brackets, like [ORGANIZATION NAME], and are highlighted in the preview below. Delete any bracketed notes you don't need.
  3. Make it yours. Check it against your bylaws and your state's rules, and change anything that doesn't fit. Have your board approve it where it says so.
  4. Printing? Print this page: the printout leaves out the site's menus and shows the template with lines for the blanks.

Cash and cards are the easiest ways for a charity's money to leak, through honest mistakes as often as theft. This policy sets simple rules for both, so that every purchase has a receipt, a reason and a second pair of eyes. It puts into writing the habits in our guide to financial controls.

The New York Attorney General's guidance on internal controls says a charity's written financial procedures should cover "authorizing use of credit cards," handling cash, and "authorizing and verifying expenditures," and that no single person should be responsible for receiving, recording and depositing funds and also writing and signing checks. This template applies that to petty cash and cards.

How to adapt it

  • Decide whether you need petty cash at all. Many small charities manage with a card and reimbursements. If you don't keep cash, delete Part 1.
  • Fill in the amounts. Pick limits that fit your size: a petty cash fund big enough for a month of small purchases, and card limits no higher than the largest routine purchase.
  • Reimbursements belong elsewhere. When someone spends their own money and asks to be paid back, use the expense reimbursement policy instead.
  • Receipts. IRS Publication 463, written for business travel and gifts, says documentary evidence isn't needed for some expenses under $75 (other than lodging) when they're properly recorded. This policy asks for a receipt for every purchase anyway, because it's simpler and it's what a reviewer will expect. If you choose a lower bar, write it down.
  • Personal use. If an officer or director uses a charity card personally and repays it later, that can amount to a loan from the charity. Form 990 asks about receivables from officers, directors and key employees (Part IV, line 26, and Part X, line 5), and state law may restrict such loans. New York's Not-for-Profit Corporation Law § 716, for example, bars loans to directors, officers and key persons, with narrow exceptions. Rules vary by state, so check yours, and keep the "no personal use" rule absolute.
  • Have the board approve it and record the approval in the minutes. Review it every year.

Preview

Petty cash and card policy: [ORGANIZATION NAME]

Approved by the board on: [DATE]

Next review: [DATE]

1. Petty cash

  1. Fund size. The petty cash fund is $[AMOUNT]. Only the treasurer can change this, with board approval.
  2. Custodian. [NAME OR ROLE] keeps the fund in a locked box at [LOCATION]. A backup custodian is [NAME OR ROLE].
  3. What it's for. Small, routine purchases for the charity, such as [EXAMPLES]. No single payment may be more than $[AMOUNT].
  4. Never used for: personal purchases, loans or advances to anyone, cashing personal checks, paying people for work, or gift cards.
  5. Vouchers. Every payment needs a voucher showing the date, amount, payee, purpose and the signature of the person receiving the money, with the receipt attached.
  6. Balance. At all times, cash plus vouchers must equal the fund amount.
  7. Top-ups. The custodian asks for a top-up when the cash runs low. A person other than the custodian checks the vouchers and approves the top-up, which is paid by check or transfer and recorded in the books by expense category.
  8. Surprise counts. [NAME OR ROLE], who is not the custodian, counts the fund at least [NUMBER] times a year without notice, and signs the count sheet.

2. Charity cards

  1. Who may hold a card. Cards are issued only to these roles, with these limits:
Cardholder roleCard typeLimit per purchaseMonthly limit
[ROLE][DEBIT / CREDIT]$[AMOUNT]$[AMOUNT]
[ROLE][DEBIT / CREDIT]$[AMOUNT]$[AMOUNT]
  1. Allowed purchases. Approved budget items for [ORGANIZATION NAME], such as [EXAMPLES].
  2. Not allowed: personal purchases of any kind, even if repaid; cash withdrawals [UNLESS APPROVED BY ROLE]; gift cards without written approval from [ROLE]; splitting a purchase to get under a limit; and anything a vendor's own rules forbid.
  3. Online accounts. Cards stored with online vendors are listed in the card log, and removed when the cardholder changes.
  4. Receipts. The cardholder keeps an itemized receipt for every charge and notes the purpose and the program or budget line. Receipts are submitted within [NUMBER] days of the statement date.
  5. Missing receipts. If a receipt is lost, the cardholder writes and signs a note with the date, vendor, amount and purpose. More than [NUMBER] missing receipts in a year means the card is withdrawn.
  6. Monthly review. Each month, [ROLE], who isn't a cardholder, matches the statement to the receipts, signs it, and reports anything unusual to the treasurer. The treasurer's own card statement is reviewed by [ROLE, FOR EXAMPLE THE BOARD CHAIR].
  7. Rewards. Points, cash back and other rewards belong to [ORGANIZATION NAME].
  8. Lost or stolen cards are reported to the bank and to [ROLE] the same day.
  9. When a role changes, the card is cancelled the same day and the cardholder's stored card details are removed from vendor accounts.

3. Misuse

  1. A personal or unapproved charge must be reported by the cardholder as soon as they notice it, and repaid within [NUMBER] days. Repayment doesn't make personal use allowed.
  2. Deliberate misuse means the card is withdrawn and the matter goes to the board. The board decides whether to take further action, following our guidance on when money goes missing.

4. Records

Count sheets, vouchers, card statements and receipts are kept for [NUMBER] years, in line with our document retention policy.

Cardholder and custodian acknowledgment

I have read this policy and agree to follow it.

NameRoleCard or fundSignatureDate
[NAME][ROLE][CARD ENDING ####, OR PETTY CASH][DATE]

Checks

Template from Golden Hint: goldenhint.org/resources/templates/petty-cash-and-card-policy. Reviewed October 21, 2026. General information, not legal or tax advice.

General information. Not legal, tax or financial advice. Rules change and every situation is different, so check the official sources and talk to a qualified professional before you act. More about this.

Keep going

Sources

Checked on October 21, 2026. Rules and fees change, so follow the links for the current version.

  1. New York Attorney General Charities Bureau: Internal Controls and Financial Accountability for Not-for-Profit Boards
  2. IRS: Publication 463 (2025), Travel, Gift, and Car Expenses (adequate records and accountable plans)
  3. IRS: Form 990 (2025), Part IV, line 26, and Part X, line 5
  4. New York State Senate: Not-for-Profit Corporation Law § 716, loans to directors, officers or key persons

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