How do Clubs Manage Money?
BOREAL (the Biannual Ontario Recreational Excursion Association of Lakehead) is a ratified club under the bylaws of LUSU (the Lakehead University Student Union), a 126(1) not-for-profit corporation incorporated in Ontario, Canada. We operate out of Lakehead University's Orillia Campus.
For accounting and taxation purposes, Orillia Clubs are not permitted to have individual bank accounts. All club revenues are deposited into, and all club POs are expensed out of, the LUSU's central Orillia Clubs bank account, within which context notes are used to maintain allocation.
How do Clubs Process Money?
Due to the contextual note trail requirements, a club's individual members are not permitted to directly deposit money into LU's Orillia Clubs account; only Officers may make such deposits. As to satisfy that requirement, for collections purposes, club officers act as intermediaries.
When you make a payment, a donation, or a Purchase Order for/to the club, you are doing so through the club's officers as intermediaries. Credit card payments, e-transfers, and cash are collected by club officers in their personal capacity, and thereafter deposited into the club's bank account.
How do Clubs Secure Transactions?
To ensure the security and reliability of this process, BOREAL uses a collection of accounting techniques including Access Controls, Purchase Orders, Invoices, Ledgers, and Chain of Custody practices. Your transaction is accounted for at its origin, and further accounted for at its destination.