Being a volunteer treasurer of a nonprofit organisation can be challenging. While most of the tasks and procedures involved are fairly straightforward, various deadlines and requirements can make the position quite demanding.

A volunteer treasurer’s main function is to provide oversight of every aspect of financial management for the organisation. Significant duties and responsibilities are required to perform this formidable, yet fulfilling, role.

What Skills Do You Need to be a Volunteer Treasurer?

One common misconception about being a treasurer is that volunteers in this role should have backgrounds in accounting, finance or business. Prior experience in these areas does make it a bit easier starting out, but it’s not a formal requirement.

Having a high degree of personal responsibility and integrity, a love of numbers, an eye for detail and great organising skills are traits and abilities that make it easier to learn and perform the job duties required of this role.

So, what exactly is involved in being the treasurer? While the treasurer is responsible for hundreds of tasks and duties each day, many of these responsibilities can be grouped into the following six areas.

Financial Oversight

The treasurer is responsible for managing the nonprofit’s finances. This includes every aspect of financial management, including setting up internal controls and creating systems to collect, track and preserve a history of every single financial transaction involving the nonprofit.

Treasurers are responsible for ensuring that all financial activities of the nonprofit follow all legal guidelines, regulations and financial best practices and meets all legal requirements.

Treasurers in small sized nonprofits are typically directly involved in all of the duties related to financial management. This includes everything from handling the cash to keeping up with the books. In a larger nonprofits, the treasurer assumes more of a management and supervisory role and delegates many of these tasks to members of a finance committee, other volunteers, and staff.

Perhaps the treasurer’s most important financial management role is to act as a gatekeeper to the nonprofit’s cash and other assets. The treasurer should be well aware of the true condition of the nonprofit’s finances at all times and ready to offer information and advice to board members at all times, especially as it relates to spending and budgeting.

Budgeting and Planning

The treasurer is responsible for helping the board to create budgets that are realistic, that support sustainable growth, that helps them to fund projects on a cost effective basis so that the nonprofit operates on a sound financial basis at all times.

The treasurer is also responsible for tracking income and expenses as it relates to the budget and keeping the board apprised of the nonprofit’s true financial picture and any deviations or unexpected changes to the budget.

Fundraising

Many NFPs have fundraising committees to help with the planning and hosting of specific fundraising special events, but treasurers play a vital role in the fundraising process and planning for specific fundraisers. Many assist with preparing specific fundraising budgets, especially as it relates to how much the nonprofit can spend on common event expenses such as catering, venue, advertising and more.

Many treasurers either handle grant and sponsorship applications directly, or assist in the process of applying for grants and other government and third party funds.

The treasurer may assist with fundraising directly and solicit donations and contributions on behalf of the organisation, as well as tracking donations, verifying contributions and sending acknowledgements.

Banking and Asset Control

Treasurers are responsible for the handling, tracking and control of all of the nonprofit’s assets. This includes overseeing the handling of cash, stock and sales, the collection of fees, dues, sales and other monies. It also includes making payments for items such as rents, utility bills, premiums for insurance policies and other expenses. Treasurers are also responsible for bank deposits, completing bank reconcilements and so forth.

Recording, Tracking and Bookkeeping, Reporting

The treasurer is responsible for all record keeping, including basic data entry of transactions. They are also responsible for preparing reports to the board, such as presenting the monthly treasurer’s report that details the expenditures and revenues and material changes to the nonprofit’s finances during the reporting period.

Treasurers also prepare annual reports, as well as ensure that specific filings, such as GST, business activity statements, and similar disclosures are compiled and made on time to regulatory and government entities. Various apps and automated cloud-based software makes most of these tasks very easy and uncomplicated to complete.

Since they are so close to the nonprofit’s financial records and transactions, treasurers are responsible for ensuring that the accounts and books are properly prepared for an audit by independent third parties, and to act as a go-between for the auditor and the board and administration. It is with the treasurer’s assistance that a full and complete audit of the nonprofit’s finances and accounting practices can be completed.

Risk Management

Treasurers have a critical role to play in reducing the nonprofit’s exposure to the risk of loss. They should always be on the lookout for ways to avoid or mitigate potential losses. Reviewing insurance policy coverages, establishing sound financial practices and controls and ensuring that these policies are followed are just a few of the many ways that treasurers help NFPs manage their risk.