- Serve as custodian of the funds of the organization, keeping careful records of all receipts and making no disbursements without the authority of the assembly (including established authorizations found in the organization’s rules).
- Prepare financial statements and report to the board and members.
- Take responsibility for any and all reports required by taxing authorities.
But if you’re dealing with a large membership and tracking dues and a major budget, you’ll probably have some professional help. In any event, when it comes to taking care of somebody else’s money, you definitely need to know what’s involved before you agree to take over the position.
Robert’s Rules suggests that any officers who handle an organization’s money be bonded at the expense of the group in an amount large enough to protect it from loss. The decision to obtain a fidelity bond is one for your membership, and the choice depends on the group’s actual finances.
Small organizations don’t necessarily have inconsequential finances, as far as the Internal Revenue Service (IRS) is concerned. You’re mistaken if you think your group is automatically a nonprofit or tax-exempt organization because it isn’t organized as a business. The point? If you’re the officer responsible for taking care of your group’s money, don’t assume anything.
Before you sign any checks, ask a professional if your organization is required to file any kind of tax returns, and get the answer in writing. Whatever the professional says, be smart and take the advice.