Common Cents: Choosing the Right Treasurer for Your Nonprofit Board 

As Propel staff, we know that the board treasurer role is one of the hardest to fill. While it might be scary at first, there are actually many types of people who would make a great board treasurer. 

Whether it is because they think they don’t know enough about math, or accounting, or finance, or someone with corporate finance experience volunteers for the role, recruiting a good treasurer often becomes the Mount Everest, so to speak, of an Executive Director’s board recruitment tasks. 

In our roles at Propel, we get the opportunity to work with nonprofit finance staff and executive directors on a day-to-day basis. We have started to notice this trend becoming more common as rare cases of fraud make the news, and nonprofits face more scrutiny because of federal legislation changes. Right when nonprofits need strong treasurers, they are difficult to find.  

We’ve got a few ideas about what might convince your best board members to consider the role. These are especially good tips for organizations that have one or more full time finance positions.   

Tips for Cultivating Financial Leadership on Your Board 

1. Define the Role  

Clear job descriptions and expectations are essential. Define what the treasurer needs to do, which varies depending on whether the organization has financial staff or relies on volunteers. Most often, a treasurer has specific financial oversight responsibilities—such as approving budgets, assuring compliance, or acting as a signatory when needed—but they shouldn’t be involved in the day-to-day accounting activities of an organization. 

A board treasurer should be a leader, facilitator, and someone who is willing to learn the ins and outs of nonprofit finance. Even someone who has a background in corporate finance will need to learn these basics! Skills to look out for are organization, attention to detail, and the ability to engage others. The best candidate is someone who is committed to learning and to the organization’s mission.  

If you’ve found that person, you could support their understanding of nonprofit finance by:  

• Partnering with the organization’s auditors  

• Getting to know the auditors of an organization allows a treasurer to ask important questions of a third party  

• Partnering with the organization’s accounting and finance staff 

• Allowing space for this relationship to grow is important for the financial health of your organization 

• Partnering with Propel!  

• We have trainings, resources, and products designed specifically for those who want to learn more about nonprofit finance. 

You can download a treasurer job description from our Resources library: https://propelnonprofits.org/resources/sample-nonprofit-board-member-job-descriptions-template/   

2. Build a Strong Finance Committee 

This spreads responsibility, supports the treasurer, and prepares future leaders. Consider requiring board members to serve on the finance committee before becoming treasurer. Serving on the finance committee gives board members invaluable insight into how the organization runs, which strengthens board leadership overall. 

Some organizations have finance committee members who are not part of the board. This practice makes it possible to include individuals with expertise relevant to financial matters, which can assist the treasurer in their duties.  

You can download a sample finance committee description from our Resources library: https://propelnonprofits.org/resources/sample-nonprofit-board-committee-descriptions-template/  

3. Empower Finance Staff   

When executive directors and staff feel confident in financial matters, the power dynamic with the treasurer is healthier and less dependent on a single expert.  

Make sure your staff feel confident in talking about the financials and look to them to present to the board. A treasurer should facilitate the conversation around them and point people back to the financials to find answers and ideas.  

John works closely with many finance staff and is treasurer on two nonprofit boards. His advice: “I always tell finance staff I work with that it is ok to say you don’t know the answer, but you can get back to the board. This helps define the line between management and governance.” 

4. Rotate the Role Regularly  

Term limits prevent one person from holding the position indefinitely and encourage broader participation. 

It is common for organizations to retain the same treasurer for extended periods, given the specialized knowledge associated with the position. However, when a treasurer remains in office too long, it may discourage others from expressing interest in the role, as it can give the impression that the position is a permanent appointment. 

5. Watch for Red Flags 

You’re right to think that sometimes people seek this role because they perceive it to be a powerful one. That can be said for any board seat. And, while it isn’t common, we do want to remind you to trust your intuition when it comes to this role.  

Avoid candidates who seek the treasurer role for power or control, and ensure the role is institutionalized so expertise doesn’t leave with one person.  

What to do Next 

Every good board member can be a good treasurer with the right support and structure. They could be anyone who has an interest in serving on your board and has the gifts and skills of facilitation and curiosity, regardless of what their ‘day job’ is. 

By defining the role, providing clear expectations, and building a supportive finance committee, nonprofits can make the treasurer’s position accessible, sustainable, and effective for the whole organization.  

More Resources:  

• Make sure your finance staff feel comfortable speaking about your financials, and more. Check out our Financial Insights Coaching: https://propelnonprofits.org/services/accounting-finance/financial-insights-coaching/ 

• Subscribe to our training newsletter and be the first to register for our February Training “Treasurer/Finance Committee: Right People, Right Roles” when it is posted later this year: https://propelnonprofits.org/newsletter/  

• Check out this resource from our Resource library: https://propelnonprofits.org/resources/treasurer-and-finance-committee-right-people-clear-roles/