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Elementary School Kids Elementary School Kids

Would you agree to this?

Posted by on May. 4, 2013 at 8:34 AM
  • 59 Replies

My son is in scouts, and every year, they do the popcorn sales. He's not very good at it, so we usually end up doing the "buy out" thing at the end of the selling season. This year, they want people to not only pay their annual dues, but give them the full buy out amount up front of $100. I wouldn't have a problem with that except they plan to hold those checks for 6 months (until October). Their idea is if at the end of six months, if you owe the money, they'll cash it. If you don't, they'll give it back, or deduct from it the amount of sales you made, etc. I am uncomfortable with having a check held for six months. Both DH and I are contractors, and anything can happen in six months. The last thing I want is for our account to get overdrawn because they cashed a check six months after we wrote it. 

Would you be comfortable with this? Do you think it's reasonable for them to request this? I don't think I'm going to agree to it, and if that means my son can't be in scouts, then so be it. 

by on May. 4, 2013 at 8:34 AM
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Replies (1-10):
coolmommy2x
by Gold Member on May. 4, 2013 at 8:39 AM
They do this at DD's dance school for recital costumes. We give them the check in November and they cash it in January or February, I forget which.
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mjande4
by Platinum Member on May. 4, 2013 at 8:51 AM

No, I would not be comfortable with this method of payment at all.

GwenMB
by Gwen on May. 4, 2013 at 9:10 AM
1 mom liked this

I'm not sure what I think.  I do find it odd that they'd hold onto a check for 6 months since I think that's the end of the time frame in which banks will cash checks.

Can you balance your checkbook assuming its cashed & have your checkbook balance showing a balance with it cashed so you don't spend that money?

steelcrazy
by Emerald Member on May. 4, 2013 at 9:14 AM
3 moms liked this

 I'm not sure what the problem would be.  You write the check, you deduct the $100 from your account balance in your check register, and you move on.  If you deduct the amount from your register, I don't understand how you would be able to forget about that check coming out of your balance.  IDK, maybe my accounting degree is making me not see the problem.

cjsbmom
by on May. 4, 2013 at 9:40 AM

I think they have a year to cash a check before a bank will no longer cash it. 

Quoting GwenMB:

I'm not sure what I think.  I do find it odd that they'd hold onto a check for 6 months since I think that's the end of the time frame in which banks will cash checks.

Can you balance your checkbook assuming its cashed & have your checkbook balance showing a balance with it cashed so you don't spend that money?


cjsbmom
by on May. 4, 2013 at 9:41 AM

It makes more sense that they would cash the checks, then put that money aside. In six months, whoever is owed money back, they cut them a check back. That is financially the best way to do it instead of holding onto hundreds of people's checks for six months. My concern is if they forget to cash one at the end of the six months. With a volunteer organization, that could happen. This particular group doesn't seem to be the most organized one I've ever encountered. 

Quoting steelcrazy:

 I'm not sure what the problem would be.  You write the check, you deduct the $100 from your account balance in your check register, and you move on.  If you deduct the amount from your register, I don't understand how you would be able to forget about that check coming out of your balance.  IDK, maybe my accounting degree is making me not see the problem.


JulesFairy
by Silver Member on May. 4, 2013 at 9:42 AM

I would have a problem with it. One... that's either writing a postdated check ( *Apparently not* illegal) or that's flirting very closely with the expiration of the check. Two... and this is a personal thing. I HATE CHECKS. I only use them because I have to for two items and one of them drives me batty as it is because its due of the first but they never cash it before the 15th. Why do you want to hold on to something for two weeks? I like to see my bills come out and clear the bank within a week max of me making the payment. I have had issues in the past with either the banks or the companies processing things wrong so I like to stay on top of it, not wonder for six months. And Three... I would be worried about someone losing it. Six months is a long time for a little piece of paper.

Now if you want me to pay you 100 dollars and you put a credit on my son's account and hand me a voucher for that then okay. But $100 being in limbo land wouldnt be okay with me.

ETA : Clarification. I was misusing the term. Postdated check is simply a check that is dated forward of the date today. I was referring to writing a check to be cashed on a later date when the funds are not currently in your account. And that is illegal. It's only not illegal currently have the funds in your acct.

steelcrazy
by Emerald Member on May. 4, 2013 at 10:02 AM

 If they forget to cash the check in six months, then the check automatically is VOID.  A bank is not permitted to clear a check that is more than six months old.  The Treasurer for the Pack/Troop should be on top of this though, since that is his/her job within the Pack/Troop. 

The way that you suggest would be more work on the part of the Scouts.  They would have to record transactions in their check register, general ledger, and individual scout ledger for all of those checks that they received.  Then in six months they would have to record transactions in their check register, general ledger, and individual scout ledger for all of the refund checks that they have to issue.  If they pack/troop provides a financial report to their committee, they should do this monthly, those transactions would also have to be recorded on that report.

I'm not saying that it can't be done that way, but is is a lot more work than just putting those checks in a secure location for six months and then only having to do all of the financial paper work once.

Our pack holds onto our check for a few months as well.  We've never had any problems with this practice and have been doing it for much longer than my boys have been in scouts.  My oldest is now in Boy Scouts.

Quoting cjsbmom:

It makes more sense that they would cash the checks, then put that money aside. In six months, whoever is owed money back, they cut them a check back. That is financially the best way to do it instead of holding onto hundreds of people's checks for six months. My concern is if they forget to cash one at the end of the six months. With a volunteer organization, that could happen. This particular group doesn't seem to be the most organized one I've ever encountered. 

Quoting steelcrazy:

 I'm not sure what the problem would be.  You write the check, you deduct the $100 from your account balance in your check register, and you move on.  If you deduct the amount from your register, I don't understand how you would be able to forget about that check coming out of your balance.  IDK, maybe my accounting degree is making me not see the problem.


 

mysweet1s
by Bronze Member on May. 4, 2013 at 10:15 AM

They do this for my son's baseball program.  If you don't do your volunteer work during the course of the season, they cash your $70 check.  If you do, they give your check back.  I just deduct the amount from my account when I write out the check - then it seems like a little gift when I get it back :)   

cjsbmom
by on May. 4, 2013 at 11:23 AM

I have very little faith in our treasurer, as she has proven to not be the most competent.That is all I will say. 

Quoting steelcrazy:

 If they forget to cash the check in six months, then the check automatically is VOID.  A bank is not permitted to clear a check that is more than six months old.  The Treasurer for the Pack/Troop should be on top of this though, since that is his/her job within the Pack/Troop. 

The way that you suggest would be more work on the part of the Scouts.  They would have to record transactions in their check register, general ledger, and individual scout ledger for all of those checks that they received.  Then in six months they would have to record transactions in their check register, general ledger, and individual scout ledger for all of the refund checks that they have to issue.  If they pack/troop provides a financial report to their committee, they should do this monthly, those transactions would also have to be recorded on that report.

I'm not saying that it can't be done that way, but is is a lot more work than just putting those checks in a secure location for six months and then only having to do all of the financial paper work once.

Our pack holds onto our check for a few months as well.  We've never had any problems with this practice and have been doing it for much longer than my boys have been in scouts.  My oldest is now in Boy Scouts.

Quoting cjsbmom:

It makes more sense that they would cash the checks, then put that money aside. In six months, whoever is owed money back, they cut them a check back. That is financially the best way to do it instead of holding onto hundreds of people's checks for six months. My concern is if they forget to cash one at the end of the six months. With a volunteer organization, that could happen. This particular group doesn't seem to be the most organized one I've ever encountered. 

Quoting steelcrazy:

 I'm not sure what the problem would be.  You write the check, you deduct the $100 from your account balance in your check register, and you move on.  If you deduct the amount from your register, I don't understand how you would be able to forget about that check coming out of your balance.  IDK, maybe my accounting degree is making me not see the problem.


 


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