Responsibly managing money that's not mine

[Ravin]

Last night I was cut a check for expenses related to a volunteer position I hold. It's a fairly large chunk of money (for me, at least), and given the state of my own finances (budget so tight it screams), my inclination is to not simply deposit it in my checking account. There are several options I've come up with. I could deposit the check then transfer the money to be held in my paypal account; I could get a prepaid card to put the money on (but this would cost several dollars), I could cash the check and hold the money as cash (with the risk of misplacing it and need for repeated trips to the bank to deposit what I spend online), or I could open a second checking account for it (again, there would probably be fees from my bank for it).

WWYD?

[Ellien C]

Does the organization have any rules about the money? Will you need to produce receipts? Are you allowed to open an account with it? I would find out if they have any rules about how it should be spent or what kind of accounting you need to keep. Even though you are honest, I would also be concerned about someone with an ax to grind (either with the organization itself or with you personally) who might acuse you of dishonesty. So you don't even want to give the appearance of impropriety. Save all of your receipts and get a small booklet where you write the purchases down at the very least. Then find out about rules - double signatory accounts, no ATM cards, reimbursements by check only are some of the rules that the non-profit for I've been treasurer had.

[Annie Mac]

I think it would depend on a few factors: 1. How much are we talking? Under a 1000, over a 1000? (you don't have to answer, just consider quietly in your own mind). 2. How long will you be custodian of the money before it is spent? Is this a budget that is supposed to last you a year, or a week? 3. Are you going to have to do this repeatedly? Finally, 4. How organized are you with your own cash? Is there any chance that if you put it into your own account that you might accidentally spend it?

If this is something you're going to do again, then get an account. Actually, i think the organization should open the account and make you a signatory so you can access the money as required. That's a very common arrangement. If it's a one time thing, and you will have bought the items fairly quickly, I'd be tempted to just keep it as cash. But as the PP said, receipts, receipts, receipts! 

[Ravin]

It is a cash advance, and I have to turn in receipts as well as any money I don't spend on the authorized purchases (craft supplies, a pizza party for youth, and a luncheon for adults who work with the youth). The money came from the organization's fund for the event the supplies/food are for; the treasurer cut the check based on the authorized budget.

Anyway, keeping it as cash is probably the most straightforward way to go; I'm afraid of paypal yanking the funds to somewhere I don't want them (like when I pay my midwife through paypal from my MSA; I wasn't watching closely the last time and it took the money from my checking acct instead).

And our budget is tight enough that yes, accidentally spending part of it (and then having to come up with it later when I'll be out of work on unpaid baby leave) if it's sitting in checking is a possibility, just as accidentally overdrafting is a possibility now (something I haven't done in over six months, but we're on REALLY narrow margins; sometimes my balance gets down to less than five dollars).

I am capable of being responsible with money; I had seven dollars leftover from picking something up for a friend sitting in my wallet for like six months. I kept forgetting to give it to her, but then I didn't spend it, either. I think it's easier to compartmentalize when it's paper money; I used an envelope system for my budget for over a year. Probably an envelope would be the way to go; receipts can go in as money comes out.

[VisionaryMom]

I'd definitely go with cash. That's what I've done in the past when I've had money from organizations.