By GALA Expert
November 21, 2023
(taken from eHow and adapted)
Care, Loyalty and Obedience
According to BoardSource, an organization that focuses on training for non-profit boards, it lists care, loyalty and obedience as the standards many states use to define the board’s legal responsibility. Care refers to competence and reasonable care, while loyalty and obedience refer to honoring the organization’s mission, respecting confidentiality and being mindful of the public’s trust. For the treasurer, this translates into ensuring that the organization is a good steward of charitable donations and the tax-exempt status, providing oversight of the organization’s fiscal integrity and assisting the board in meeting its mandate to govern.
General Knowledge
The treasurer is required to attend all scheduled meetings and actively seek to maintain current knowledge of the organization, its programs, bylaws and articles of incorporation. The treasurer is required to have knowledge of nonprofit accounting practices, nonprofit tax laws and fiscal record-keeping.
Accounts and Expenditures
Bylaws usually provide for the treasurer to be one of two officers authorized to sign checks or granted access to bank and credit accounts. Treasurers have full knowledge of all organization holdings and assets. Treasurers review monthly account records and monitor income and expenditures. The treasurer also reviews financial reports from organization staff or directly prepares such reports if the organization has no administrative staff.
Reports
The treasurer prepares reports to the board detailing income, expenditures and asset values. The treasurer presents a financial report at each board meeting and also prepares and presents the annual financial and audit report to the board. Board officers and members rely on financial reports to guide decisions in all areas of governance. The treasurer prepares special financial reports addressing proposed plans for large expenditures.
Finance Committee
The treasurer is chair of the finance committee. The finance committee is charged with developing the organization’s fiscal policies and procedures and developing the budget. The committee oversees annual audits and reviews the audit report.