The Board Treasurer: More Than Just Numbers

Dispelling the Myth: Anyone Can Be a Treasurer

Contrary to popular belief, you don’t need a CPA or MBA to serve as a board treasurer. If you can manage your personal finances responsibly, you have the foundational skills to contribute to a nonprofit’s financial health.

Think of it this way: as a treasurer, you’re acting as a fiduciary, responsible for protecting and managing the organization’s assets. It’s similar to being a parent – you want what’s best for your child, and you’ll make decisions accordingly.

Financial Oversight: A Strategic Role

While the treasurer is not responsible for day-to-day accounting tasks, they play a crucial role in financial oversight. This involves reviewing financial statements, budgets, and asking probing questions to ensure the organization is on a solid financial footing.

Treasurers collaborate with finance committees and executive directors to:

• Assess budgets: Is the budget aligned with the organization’s mission and goals?
• Review financial reports: Are there any red flags or areas of concern?
• Make strategic decisions: How can we optimize our financial resources?

Timely Reporting: A Cornerstone of Financial Health

Jackie emphasizes the importance of timely financial reporting. Monthly financial statements and quarterly board reviews can help identify and address issues promptly. By staying on top of the financials, treasurers can prevent small problems from escalating into major crises.

Transparency and Accountability: A Nonprofit’s Duty

Nonprofits must be transparent about their finances. This includes making audited financials and tax returns publicly available. Regular financial communication helps build trust with donors, volunteers, and the community.

As a treasurer, you’re responsible for:

• Scrutinizing budget variances: Are there any significant deviations from the planned budget?
• Ensuring corrective action: If there are problems, are steps being taken to address them?

A Cautionary Tale: The Importance of Financial Discussions

I once heard a story about a nonprofit that experienced a significant financial decline. The board had a habit of rushing through financial reviews, often relegating them to the end of meetings. When they finally started giving financial matters the attention they deserved, they were able to identify and address the underlying issues.

Conclusion

By understanding the role of a board treasurer and prioritizing financial oversight, transparency, and accountability, you can help your nonprofit achieve long-term financial stability and fulfill its mission.