Every position on a nonprofit’s board of directors is crucial to helping the organization reach its objectives. The nonprofit executive director may get most of the attention for their work on the day-to-day operations of the nonprofit, but the other roles on the board are just as vital to high-quality governance. For example, the nonprofit treasurer has the responsibility to provide financial oversight to ensure the organization’s resources are properly managed.
While other board members should have a knowledge and understanding of the nonprofit’s financial situation, the treasurer’s main focus is to create financial reports and ensure the organization’s use of money aligns with its overall vision. Read on to learn more about the importance of the nonprofit treasurer and what duties are associated with the role.
What Is a Nonprofit Treasurer?
The nonprofit treasurer is a board position primarily tasked with providing financial oversight for the nonprofit and serving as a liaison between the nonprofit’s board and senior staff. Treasurers often work most closely with the board president and secretary. To become a nonprofit treasurer, one usually has to be nominated by a committee, board member, or another leader in the organization before being confirmed in a vote.
When evaluating candidates for the nonprofit treasurer position, the most valuable qualities to look for include:
- Technical accounting skills to oversee how nonprofit funds are collected and distributed
- Ability to provide organizational leadership to help the nonprofit grow and develop strategies that expand its reach
- Verbal and written communication skills to write descriptive financial reports and better collaborate with other board members
- Financial expertise
- An understanding of the nonprofit’s mission and bylaws
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Nonprofit Treasurer Roles & Responsibilities
The tasks of the nonprofit treasurer may change depending on the goals of the organization and the local and state laws that inform their operations. But whether your nonprofit is formed in Maryland or Pennsylvania, common responsibilities include:
1. Mission and Vision Leadership
Nonprofit treasurers play a key role in shaping the financial strategy that supports the organization’s mission and vision. They are charged with developing a financial plan that suits the organization’s short-term objectives and long-term goals. This can be done by enforcing new financial policies and procedures for the nonprofit and evaluating them for their effectiveness. Treasurers can also review the list of people with access to the organization’s funds or authority over nonprofit spending.
To ensure the nonprofit’s finances are managed sensibly, the treasurer advises the board of directors and other management figures on the financial implications of certain opportunities and threats to their operations.
2. Fundraising and Resource Development
Nonprofits succeed on their ability to raise money from small and large donors. Without sufficient funding, the organization won’t be able to run as many programs, reach the wider community, or employ as many staff members. Treasurers contribute to fundraising efforts by advising the board of directors on their resource development strategy and grant writing plans. This helps the nonprofit bring in consistent revenue to advance their work and reach more people.
3. Community and Stakeholder Relations
Public relations is a massive factor in the impact of a nonprofit. Treasurers support the nonprofit’s public relations efforts by communicating its financial health to stakeholders and the community, building transparency and trust.
By providing advice to established and emeritus board members, treasurers can cultivate better relationships with businesses and other donors and bring in more resources. Simplifying the nonprofit’s financial information into plain terms allows the public to gain confidence that the nonprofit is operating ethically and is worthy of trust.
4. Staff and Volunteer Management
While the treasurer’s primary focus is on finances, they also contribute to staff and volunteer support by overseeing financial aspects of workforce management. They help plan for regular audits, both internal and external, to ensure compliance and efficiency in operations. These audits provide a clear picture of the nonprofit’s financial health, which indirectly supports a positive work environment by ensuring resources are used responsibly and sustainably. The treasurer’s role in fiscal oversight ultimately helps create a stable work environment, fostering morale and preventing burnout.
5. Governance and Compliance
Nonprofit treasurers contribute to the overall governance of the organization by managing their day-to-day finances and serving as counsel to the board on potential investment decisions and project developments. All financial management decisions should be informed by the nonprofit’s operating budget, which is based on its performance during the fiscal year.
As the chair of the finance committee, the treasurer works with the executive director, board members, and other in-house leaders to create the overall budget and budgets for specific programs, overhead, labor costs, and administrative expenses. Ideally, the budget is large enough to fulfill your strategic goals without putting the nonprofit’s financial health in question. Since the treasurer presents the budget to the board of directors for final approval, they must be prepared to answer all budget-related questions.
The treasurer also prepares and distributes financial reports to major stakeholders at the end of the fiscal period. These reports make it easier to track the nonprofit’s financial status and make better decisions about the future of the organization. Financial reports can include:
- Budget documents
- Balance sheets
- Cash flow statements
- Annual reports
- Statements of financial positions
- Footnote disclosures
Each of these tasks helps to verify that the nonprofit complies with state and IRS rules and regulations and avoids creating any legal problems for itself or any stakeholders.
Getting Started With OnBoard
Like all board members, nonprofit treasurers need the right support systems to do their jobs effectively. Digital board management software can help manage your nonprofit’s finances with features that make it easier to collect and store information in real time, track the progress of projects, and collaborate with other board members or stakeholders. OnBoard has been in this business for years now, helping nonprofits, businesses, and governments conduct better board meetings. We are passionate about our work and are excited to pass our know-how on to anyone interested in our work.
Our free Board Management Software Buyer’s Guide is a quality summary of our expertise, informing clients on what tools should be a priority and how to vet each vendor before making your final decision. With the aid of OnBoard, you can be confident you will choose the best software for your board.
The comprehensive blueprint for selecting a results-driven board management vendor.
About The Author
- Gina Guy
- Gina Guy is an implementation consultant who specializes in working with nonprofit organizations get the most from their board meetings. She loves helping customers ease their workloads through their use of OnBoard. A Purdue University graduate, Gina enjoys refinishing furniture, running, kayaking, and traveling in her spare time. She lives in Monticello, Indiana, with her husband.
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