The expectations and underrated role of a board treasurer for a nonprofit organization vary widely. The treasurer of a nonprofit is usually appointed by the members of that organization’s board, and the position requires financial expertise as well as dedication, time and patience.
The duties of the treasurer are normally outlined in the bylaws. The treasurer ensures the other board members are updated on important financial issues.
Responsibilities often include the following:
Advise the organization on the fundraising strategy
Attend all board meeting
Create a simple budget, keep a general ledger, make bank deposits and potentially write or sign checks
Present the annual budget to the board for approval
Maintain knowledge of the organization and personal commitment to the goals and objectives
Supervise contractors hired by the board, such as a bookkeeper, tax preparer, investment professional, or fundraiser, if the nonprofit does not have full-time staff
Understand financial accounting for nonprofit organizations Serve as the chair of the finance committee
Manage, with the finance committee, the board’s review and action related to the board’s financial responsibilities
Work with the executive director and accounting personnel to ensure that appropriate financial reports are made available to the board on a timely basis
Review the annual audit and Form 990 and answer board members’ questions
Assist with cash flow projections to ensure the nonprofit maintains liquidity and solvency
Establish and maintain the nonprofit’s system of internal controls, including accounting processes and procedures, to mitigate fraud risks
Ensure timely filing of all required federal and state tax filings
Safeguard and protect the nonprofit’s assets.
In conclusion, a nonprofit needs a board treasurer who is willing and able to provide leadership in the financial life of the organization. A great treasurer balances knowledge, communications, planning and strategy!
Please contact the Not-for-Profit Niche team at Gilliam Bell Moser LLP for further guidance.
FOR MORE INFORMATION
Joy Klenke, CPA Senior Audit Manager
336.417.5511 Email Joy