Charity: treasurers top tips
Taking on the role of treasurer can seem like a great way of giving your time to support a charitable
organisation that you believe in. However, the definition of the role and the expectations placed on
individuals varies greatly from charity to charity, and many treasurers are not qualified accountants.
Here are some handy hints for those thinking of volunteering for this role.
1.
Define the role
It’s important to understand exactly what is expected of you. This may be partly down to custom and
practice but will also require a deeper understanding of the charity, its constitution and operations. Be
clear about the line between governance and management; if you think your role is being defined in a
way that crosses that line you must question it at the outset. Be careful that others aren’t assuming
more experience than you’ve got.
2.
Encourage your fellow trustees
It’s easy for the treasurer’s role to be attached to everything financial, but don’t be left doing it all. It’s
only fair to ask your fellow trustees to help out when appropriate. Just because you’re the treasurer
doesn’t mean you have to be solely responsible for counting cash after an event. You may chair the
finance committee but establish how people can offer support to you.
3.
Are you part of the control system?
In a smaller organisation the treasurer is often called upon to form part of the system of internal
financial controls. Unfortunately, this can be where things go wrong. If you are being asked to sign
things, do you have clear sight of the document and know what you’re signing? More importantly,
have you assumed a role of internal review – do people assume that you’re reviewing accounts? If
this is the case, you need to be very clear about the responsibility you’re taking on and keep a clear
record of what you’ve reviewed and at what level.
4.
Agree a timetable
Things go wrong when trustees don’t have time to review information and properly prepare for
meetings. Dates and times of meetings need to work for everyone. Getting information in sufficient
time also allows you to ask the pertinent questions and seek extra support if you need it.
5.
Meet with the team
In most charities, to understand the finances you need to talk to a number of people. Fundraisers,
senior management and HR may all have a role to play. However, don’t get in the way of people
doing their job. The role of the staff you appoint isn’t solely to give you answers.
6.
Understand risk
Carrying out your role needs a clear understanding of the risk appetite of the charity. You may be
asked to assess reports, controls, choose advisers and review budgets. To perform each of these
functions effectively, risk must be a consideration. There is no such thing as the perfect system of
control. Your role will be to present cost-efficient solutions to the charity’s problems and to do that you
will need to know what risk people might be prepared to take.
7.
Don’t take no for an answer
Sometimes a treasurer will be told that everything’s fine and under control – trust your gut. There was
a reason you asked the question and it’s your right to make sure you get an answer. It might not be
immediate, but you should never back off if you feel something is wrong. You can agree a timeframe
to get an answer but if the same question comes up again, then it’s worth considering why.
8.
Value the words “what if?”
The words “what if?” are a key part of the treasurer vocabulary. Look for the alternatives and ask
questions such as: If we don’t need it now, when will it need doing? Part of the role of the trustee is to
think about future, as well as current, beneficiaries. Consider how decisions will impact the
organisation in the medium to long-term.
9.
Establish a link with the auditor/independent examiner
A clear line of communication will give both parties the opportunity to ensure any concerns can be
discussed freely and confidentially. Don’t be afraid to ask for clarification of any points the auditor
makes. Consider if the format of their reports helps you understand their work and the accounts.
10. Enjoy it
Being a charity trustee is a hugely rewarding experience. Whatever charity you support you will get as
much out of the experience as you put in. There are numerous training courses available, but there is
no substitution for the practical experience of attending meetings and getting involved.
last updated Nov 15