Are you already interested in a specific cause, or directly involved in a nonprofit’s activities? If so, becoming a volunteer treasurer is likely to be very easy. If the position is currently open, and you already have a background in accounting or finance, all you will likely have to do is simply volunteer to serve!
Recruiting for this position is notoriously difficult for many nonprofits. Some nonprofits might post the position on websites that help connect volunteers with nonprofits that are looking for people with specific skills and backgrounds. Other times, the executive director or board members will reach out to their circle of contacts to find a good candidate. When this happens, you might not even have any experience, or even formally apply for the spot, but find yourself “drafted” into the position by the board.
Before applying for, or accepting, the position the first thing that you should ask yourself is whether you have what it takes to be a great treasurer.
Are You Organised?
One misconception about the job is that you must be a licensed accountant, or, come from a background involving banking, or even bookkeeping, to be successful in the role. This common misconception simply isn’t true. What you will need, however, is the ability to think logically. You will also need to be very detailed oriented, and able to perform your duties is a very methodical, step-by-step manner. It will also help if you are good at math and performing calculations and can be depended upon to handle cash.
Are You Dependable and Trustworthy?
Can your nonprofit count on you to do your best to fulfil the role? As a volunteer treasurer, you are an officer of your board, and will have the same the fiduciary responsibilities shared by all board members. You and every other board member are responsible for ensuring that your nonprofit operates in a legal, financially sound and sustainable manner and that all your actions are to serve your NFP’s core mission and benefit the public good.
Will You be Comfortable in the Role of Watchdog?
The treasurer is responsible for the oversight and protection of their nonprofit’s finances. Many times, in a small nonprofit, you will be responsible for the management of all areas of your NFP’s finances. This means that you will handle the cash, write the cheques, disperse funds, track and record transactions, and take steps to secure your NFP’s financial documents and other important information. There may also be other duties such as creating the budget, reporting before your board about the nonprofit’s financial health, and ensuring that your NFP is meeting all of it’s required regulatory obligations such as filing super and calculating GST among others.
In larger NFPs, you may have a finance committee and staff members to assist you in your role, but ultimately the burden and responsibility to see that everything is done legally and according to your nonprofit’s internal charter, bylaws and policies, rests squarely on your shoulders.
Can You Act as a Detective When the Need Arises?
Ideally, the outgoing treasurer will meet with you before you begin your duties, and all your nonprofit’s past records will be presented in a straightforward, accurate and organised manner. This often isn’t the case. Before your arrival, your nonprofit may have experienced mismanagement, turnover or other upheavals, so you should be prepared to use your analytical and organisational skills to uncover errors or even deliberate malfeasance. You should be prepared to make corrections and update your NFPs accounts and other records. While some mistakes can be attributed to human error, others may be the result of planned actions by those inside or outside of your organisation. You will be expected to use your critical thinking skills to help uncover activities that carry the risk of loss and take steps to reduce these risks and secure your NFP’s finances.
Can Your Board Count on You to be a Wise Counsellor?
One of the most important functions of the treasurer is to present financial information to the board in a way that is both accurate, and, easy for board members and other stakeholders to understand. You will need to be prepared to make regular reports on the NFPs finances to the board. You will also need to make yourself available to answer questions about the past, present and expected future status of your nonprofit’s finances. You should also be prepared to use this information and experience to assist in your board’s strategic planning sessions and provide your perspective and opinion when important decisions are being made that will impact your nonprofit’s financial stability.
While some of these responsibilities can seem daunting and overwhelming, especially to novice treasurers, take comfort in knowing that Admin Bandit is here to support you. Our software has been created with your needs especially in mind and is designed to help walk you through the steps of many of the duties that you will need to perform to fulfil your role. Getting started is fast and painless. Give our 55-day trial a chance today, at no charge to you, to see how quickly and easily you can manage your nonprofit’s finances!