Petty cash and card policy
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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 role | Card type | Limit per purchase | Monthly limit |
|---|---|---|---|
| [ROLE] | [DEBIT / CREDIT] | $[AMOUNT] | $[AMOUNT] |
| [ROLE] | [DEBIT / CREDIT] | $[AMOUNT] | $[AMOUNT] |

2. Allowed purchases. Approved budget items for [ORGANIZATION NAME], such as [EXAMPLES].
3. 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.
4. Online accounts. Cards stored with online vendors are listed in the card log, and removed when the cardholder changes.
5. 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.
6. 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 More than [NUMBER] missing receipts in a year means the card is withdrawn.
7. 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].
8. Rewards. Points, cash back and other rewards belong to [ORGANIZATION NAME].
9. Lost or stolen cards are reported to the bank and to [ROLE] the same day.
10. 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](/resources/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.

| Name | Role | Card or fund | Signature | Date |
|---|---|---|---|---|
| [NAME] | [ROLE] | [CARD ENDING ####, OR PETTY CASH] | | [DATE] |

Checks

- [ ] The board approved this policy, and the minutes record it
- [ ] Every cardholder and custodian has signed the acknowledgment
- [ ] Monthly card statements are reviewed by someone who isn't the cardholder
- [ ] Petty cash is counted by surprise at least as often as the policy says