The Treasurer of a Non-profit Organization is an important actor in the company’s success and its integrity. Having successfully accomplished its attempt to do good by its stakeholders, the non-profit organization has been in charge of the fund through transparency, financial accounting, and the mission, and not just money. In most cases, it is understandable that it is the treasurer who will benefit most from it. In this article, we understand the role of a non-profit organization treasurer and their responsibilities and basic duties. Learn some mistakes that a treasurer should avoid to become a non-profit organization.
Who is a Non-Profit Organization Treasurer?
The board members are often the individuals who serve as a key financial officer in the non-profit organization. The nest is taken care of by the board and, because the chairman of the nest is at the same time in charge of the treasurers, fighting for the service and ensuring financial health is part of the nest. The managers are directors of different sectors, such as telecommunications, pharmaceuticals, and mining, which are responsible for making the executive decisions within the organization. The executives can perform revenue projections, Optimize their cost structure. They can even make decisions on the Wave technology.” The treasurer may be the one to account for the treasury, as well as conduct strategic financial planning and financial report results to the board, may or may not be enough.
Core Responsibilities of Non-Profit Treasurer
Cover the major responsibilities of a Non-Profit treasurer in the steps.
- Financial Oversight: Looking at the financial position of the company, protecting assets, and ensuring that A resource is not spent unwisely.
- Budget Management: Arranging budget talks, agreeing to budgets, and making financial schemes.
- Record Keeping: Making sure that all financial transactions, income statements, and expenses are recorded correctly.
- Reporting: Representing financial reports to the board (monthly, annually) and completing the filings (like Form 990) that are necessary.
- Financial Policy: Giving assistance to and carrying out best practices for financial policies and procedures implementation.
- Strategic Input: Being the source of financial insights for strategic planning and decision-making.
Mistakes that Should be Avoided by A Treasurer
Let’s cover the major mistakes that should be avoided by a treasurer to become a good non-profit organization treasurer.
- Poor Record Keeping: A mistake a treasurer should definitely not make right from the beginning is to not keep the records of the organization’s financial transactions accurately and timely, which can lead to misunderstandings and a lack of trust among board members and donors.
- Lack of Transparency: If you don’t showcase the financial information or you don’t bring the regular reports to the board, you will not be regarded as the leader of the small business.
- Ignoring Budgets: Always maintain a spending pattern according to the budget approved and never exceed the budget limit without approval, and then the financial and cash flow crisis that the organization is about to encounter will be prevented.
- Weak Internal Controls: Refrain from assigning one person all financial responsibilities (approvals, payments, and records) as this act will lead to fraud and errors.
- Missing Compliance Deadlines: If you do not submit tax returns, reports, or the necessary documents in the stipulated time, then you may face fines or even lose the status of being a non-profit organization.
- Poor Cash Flow Management: A situation whereby cash inflows and outflows are not monitored will definitely lead to other major problems, like unpaid bills or even a delay in the help program, among others.
- Inadequate Financial Planning: Not planning and preparing the organization for such incidents as emergencies and catastrophes puts the organization at risk because it will be left unguarded.
- Not Asking for Professional Help: Don’t ignore advice from an accountant or auditors. When you need a lead to avoid serious financial mistakes.
Basic Duties of Non-profit Organization Treasurer
Understand the steps of the basic duties of a non-profit organization treasurer.
- Organize Financial Management: Supervise each payment, record, and any other necessary financial issue to make sure it is all in compliance with the organization’s mission and policies.
- Keep Proper Records: Update financial records such as income, expenses, bank and cash flow statements, and receipts to avoid any confusion and provide them as and when required.
- Issuing of Financial Report: Regularly present the financial status to the board so that they are able to better understand how well the organization is doing financially.
- Preparation and Control of the Budget: Assist in the development of the annual budget as the year goes by, and keep track of the actual spending against the initial budget.
- Meet Legal and Tax Requirements: Make sure that tax filings, audits, and regulatory reports are completed properly. And include all necessary details in due time.
- Bank Account Management: Check the validity of bank accounts, authorize payments, and secure adequate control over the use of bank accounts.
- Coordination in the Conduct of Audits and Reviews: Make provision for auditors or accountants, as well as furnish the required financial information.
- Protecting the Organization’s Assets with the Help of Strong Internal Controls: All types of assets, be it cash or any other investments, should be protected through strong internal controls and regular monitoring of the same.
- Consulting the Board: Give financial advice that can guide.
Best Practices for an Effective Non-Profit Treasurer
These effective steps help you to make an effective non-profit treasurer in the organization.
- Non-Profit Treasurer needs to support the Non-Profit mission and vision
- They need to attend and participate in board meetings.
- It’s joining the committee for hire and overseeing the executive director.
- One of the basic duties of a Non-Profit treasurer is to recruit and give training to new board members
- It makes strategic planning and provides financial oversight.
- The Treasurer promotes the organization by donating and fundraising to the community and participating in fundraising events and activities.
- Treasurer maintains internal ethics and accountability
Conclusion
After going through this informative guide, you know all the responsibilities of a non-profit organization treasurer. And their basic duties help to protect the financial performance. A non-profit organization treasurer is a board member, but they also join the committee to hire and recruit, and maintain internal ethics and accountability. So, go through this informative guide to resolve the query related to the non-profit organization Treasurer.