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discussed and should not be relied upon without an independent assessment of the
information’s value.
Audubon Chapter Treasurer
The position of Treasurer in Audubon Chapters is an important role within the Chapter,
State Offices and the National Audubon Society. The Treasurer serves as a Chief
Financial Officer (CFO) of a non-profit Corporation. In the current turbulent economic
climate, the Treasurer’s job is even more challenging. Protecting the Chapter assets and
supporting the mission of the Chapter are the primary responsibilities.
Challenges and Rewards
Although the operational dynamics of each Chapter are unique, there are some challenges
for the Treasurer that are universal.
Since the Board of Directors essentially “owns” the organization, decision making must
be done in a consensus-driven manner. The Treasurer must obtain the support of the
Board for all financial decisions. The major difference between profit and non-profit
organizations, on a cultural level, is that the Board has significantly more involvement in
the finances of the Chapter.
The Treasurer is often the only Board member focused solely on the financial health of
the Chapter. He/she must be aware of every expenditure, income source, and financial
transaction. It is important to know your limitations and where to turn for answers.
Today the Treasurer is involved in planning, management and strategy, as well as day to
day financial duties. In the past the Treasurer may have been merely a technical function,
a bookkeeper or accountant.
Treasurer for an Audubon Chapter is an extremely important Board position that can
contribute tremendously to the welfare of the Chapter and its ability to realize its mission.
This provides more personal fulfillment than in any for-profit job.
Responsibilities
The role of the Treasurer can span a variety of areas depending on the Chapter.
Finance The Treasurer has the daily responsibility for payables and receivables. The payables
should be authorized in your annual budget. Any request for money that is not budgeted
for should be handled in accordance with your by-laws.
The Treasurer is a signer on bank accounts.
It is suggested that the Chapter use accounting software, i.e. Quick Books. This provides
dual entry accounting and a standard format to transfer information to the individual
preparing the Tax Report (990-EZ or 990). It has the additional advantage of providing
consistency in recording when the position is transferred to another individual.
Every year the tax return process is started with your Chapter’s CPA. All necessary
information must be provided to the tax preparer.
Participate in creation of an annual budget detailing anticipated expenditures and
incomes. Once the budget is approved by the Board, the budget should be entered into
software. A budget vs actual report should be created and presented at each Board
meeting to keep all members informed of progress. Investment information should be
reviewed and presented as required by the Chapter’s By-laws.
Budgets – The Treasurer prepares the budget for the Chapter. It is preferable that a
Finance Committee is appointed to work with the Treasurer. The budget is the guide line
for the mission of the Chapter for the future year. Committees should submit their
budgets as part of their plan for the year and how they hope to accomplish their goals. It
is the purpose of the budget to make sure allocation of the Chapter’s funds are done with
the mission of the chapter in the forefront. The budget should be done first on a yearly
basis per category, i.e. Contributions, Newsletter Costs, Educational Program Costs. For
reporting the budget then should be broken down into monthly increments based on
historical financials.
Audit - The Chapter’s By-laws will state when an audit or review is done and by whom.
Audits by CPAs are required of Chapters with income over $2 million. Other Chapters
(under $2M) have the choice through their by-laws of a formal audit or an audit by
committee.
Investment –
The Treasurer is authorized to receive reports and track investments.
Insurance –
Be the point of contact for Chapter’s insurance agent.
Review the needs and liabilities of the Chapter as it relates to Insurance.
Board Member –
As a Board Member Treasurers report to the Board the financial health of the Chapter.
This has the additional challenge that many Board Members have limited financial
background. Care should be taken to present the financials in a way that can be
understood by everyone on the Board.
One of the more tricky ways nonprofit finance works is with Restricted Funds.
Restricted Funds can only be used for the purpose designated by the donor. If you looked
only at a cash flow report it might appear that the Chapter has sufficient operating cash.
Actually, due to the restricted designation your operating cash could be in crisis. This
underscores the importance of correct reporting.
The Treasurer should be able to speak in non-financial terms, teach the Board about
finances, and relate well to the Board.
Grants –
In some chapters the Treasurer can be responsible for obtaining and maintaining Grants.
Filing Requirements
State of California Secretary of State – filed biennially on or before the date of
incorporation. This can be filed on line at https://businessfilings.sos.ca.gov
Federal Tax Form 990 – due 4 ½ months after the fiscal year end. Two three month
extensions can be requested.
California Tax Form 199 – due 4 ½ months after the fiscal year end. Two three
month extensions can be requested.
California Registration/Renewal Fee Report to the Attorney General – due 4 1/2
months after the fiscal year end. Can be extended to by up to six months.
California State Board of Equalization Sales Tax – Yearly before January 31
IRS – 1099s - If necessary, report individuals paid $600 or more in the prior tax year.
Report by the end of January.
Complete National Audubon’s Yearly Financial Report.
Additional Information
The following is a link to the requirements of a California Nonprofit Corporation
http://www.sos.ca.gov/business/corp/pdf/articles/corp_artsnp.pdf
Conflict of Interest Statement Requirements from the IRS
http://www.irs.gov/instructions/i1023/ar03.html
The Board Position of Treasurer is rewarding and intellectually challenging. You can
effectively support and maintain the mission of your Audubon Chapter in a meaningful
way.
Ann Ohlenkamp
Treasurer
San Fernando Valley Audubon
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