So, you have been elected or designated as the Treasurer of your non-profit organization. What does that mean? The Treasure is more than "keeper of the checkbook". Responsibilities can be broken down into three functional areas:
- Financial Management
- Accountability
- Compliance.
Depending on the size of the organization, some of the activities within each functional area can be delegated or out-sourced. It remains the Treasurer's responsibility to coordinate all activities. You can delegate authority, but you can not delegate responsibility.
Financial Management
In simple terms, Financial Management centers around managing the organizations funds. This includes managing the receipt of money (revenue) or disbursement of money (expenses). The money is managed in bank accounts, savings accounts, or other investments. Revenue is typically in the form of donations, grants, membership dues, or fundraisers. Expenses are typically payment of bills, distribution of grants, payment of wages (yes the non-profit can have employees and contractors), or other management of purchases.
Accountability
The non-profit organization was approved based on a specific purpose. The Treasurer is accountable to a number of entities to ensure the organization is financially adhering to their stated purpose. Those entities include the membership of the organization, the organization's governing board, donors, grantors, and even the IRS.
Compliance
IRS StayCompliant
990 filing
