The list of volunteer treasurer responsibilities is considerable but nothing to fear. Usually appointed by the members of the board, the position requires financial expertise, commitment, time and a good amount of patience. Additionally, a sense of humor is a tremendous bonus!
Many non-profit organizations do not employ staff, so there are a number of other duties that the treasurer must take on.
Organizations are held accountable by its members, donors, funders and the governing board. The organization must demonstrate whether it is making a profit, breaking even or operating at a loss. As a way to track this, the organization must authorize each payment and record all financial transactions. Many find that a nonprofit treasurer software can help track transactions and run insightful reports that can be shared with others.
Depending on the size of your organization, the treasurer may be conducting all bookkeeping and in larger organizations, some duties may be delegated to others. The treasurer is responsible for managing banking accounts and should adhere to good banking practices. Other administrative duties of the treasurer include compliance with government regulations and protecting the organization against theft and fraud.
Financial management includes planning, budgeting and reporting. It is the responsibility of the treasurer to prepare a budget. Budgets forecast expenses and income and makes allocations for unforeseen expenses, therefore minimizing risk. The treasurer must present the budget to the board for approval, and to explain the budget in simple terms so that it is clear and well understood. The treasurer must present periodic reports on the financial position of the organization as well as prepare audits and provide advice on financial investments.
Volunteer treasurer responsibilities include working with an auditor. All accounts should be audited at least once a year by an auditor who is normally elected. The treasurer must provide the auditor with all Assets (Cash in Bank, Accounts Receivable, and Fixed Assets), Liabilities and Revenue. Some organizations may seek a qualified volunteer auditor which can save a lot of money each year.
Fundraising advice is another component of the role of the treasurer. The treasurer must be willing to advise the organization on its fundraising strategy as well as assist in preparing proposals for sponsorships and grants. Sometimes the treasurer works closely with the fundraising committee to ensure that all transactions comply with government regulations.
The treasurer must provide regular financial reports to the board. Reports must include an explanation for any discrepancies between the budget and current expenditure. In the case of a major discrepancy, the treasurer must recommend an alternative course of action. Organization, communication and transparency are a must and if you keep that at the top of your list, you will be a successful volunteer treasurer.
The job of the volunteer treasurer is critical to the success of the organization. It takes a big commitment of time and patience to make sure that your organization runs smoothly. Organization, communication and transparency are a must and if you set those goals at the top of your list, you will be a successful volunteer treasurer.
Take a peek at this handy checklist for The Treasurers Bin and make sure that you are never at a loss for information or for paperclips.