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WF Accountants work with many types of nonprofit organizations. Our goal is to help them handle their financial matters effectively and efficiently so they can focus on their mission. One of the most critical roles in a nonprofit organization is the treasurer of the board. While the president provides leadership and the secretary maintains records, the treasurer serves as the financial guardian of your organization’s mission. A strong treasurer builds trust with donors, ensures compliance with regulations, and provides the financial oversight necessary for sustainable growth. Many nonprofits struggle to find and support effective treasurers. Here are three steps to set your board treasurer up for success.
Step 1: Create a Clear, Comprehensive Job Description
Nothing sets a volunteer up for failure faster than unclear expectations. Too many nonprofits recruit treasurers with vague promises like “just keep an eye on the finances” or “it’s not too complicated.” This approach leads to confusion, frustration, and often, a treasurer who steps down after one term.
A detailed job description eliminates guesswork and helps potential candidates understand exactly what they’re committing to. Your treasurer’s job description should outline specific responsibilities such as reviewing monthly financial statements before board meetings, working with staff to prepare annual budgets, ensuring proper internal controls are in place, and overseeing the annual audit process.
Include time commitments explicitly. How many hours per month should they expect to spend? Are there busy seasons, like budget preparation or audit season, when demands increase? Will they need to attend finance committee meetings in addition to regular board meetings?
A comprehensive job description also protects your organization legally. When treasurers understand their fiduciary responsibilities, they’re more likely to fulfill their oversight duties properly, reducing risk for the entire board.
Step 2: Provide Accurate, Timely Monthly Financial Statements
Your treasurer can only be effective with reliable information. Many nonprofits undermine their treasurers by providing financial statements that are incomplete, late, or difficult to understand. This puts treasurers in the impossible position of reporting on finances they can’t confidently interpret.
Establish systems that ensure your treasurer receives comprehensive financial statements at least one week before each board meeting. These should include a statement of financial position (balance sheet), statement of activities (income statement), cash flow statement, and budget-to-actual comparisons.
The statements should be clear and accessible. While your treasurer needs financial expertise, the reports they present to the full board should be understandable to all members. Work with your treasurer to develop summary formats that highlight key metrics, variances from budget, and any areas requiring board attention.
Investing in quality accounting software and professional bookkeeping services is a benefit to nonprofits. The cost of accurate financial reporting is minimal compared to the risks of poor financial oversight.
Step 3: Recruit Someone with Genuine Financial Expertise
This might seem obvious, but many nonprofits compromise on financial expertise when recruiting treasurers. While passion for your mission matters, it cannot substitute for the technical knowledge required to interpret financial statements, understand internal controls, and provide meaningful oversight.
Look for candidates with backgrounds in accounting, finance, banking, or business management. CPAs are ideal, but experienced business owners, financial analysts, or corporate controllers can also excel in this role. The key is finding someone who can read financial statements fluently, understand cash flow implications, and recognize red flags before they become major problems.
Don’t be intimidated by recruiting high-caliber financial professionals. Many are eager to contribute their expertise to meaningful causes. Present the role as an opportunity to make a significant impact using their specialized skills.
Setting Your Treasurer – and Organization – Up for Success
When you implement these three steps, you create a foundation for financial excellence that strengthens your entire organization. At WF Accountants, we help our clients support their treasurers by customizing financial information and providing accurate monthly financial statements. A well-supported treasurer becomes a trusted advisor who helps your board make informed decisions and builds confidence among donors and stakeholders. Remember, investing in your treasurer’s success is investing in your mission’s sustainability.
Let us know if you would like to learn more about how WF Accountants support nonprofit organizations through their board treasurers.
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