When a nonprofit board finally fills the treasurer role, it can feel like a big weight has been lifted. But if your board isn’t clear on what this person should not be responsible for, you may be setting both your treasurer and your organization up for frustration—or even financial risk.

Here are five things your treasurer should not be doing:

1. Acting as the Bookkeeper

Your treasurer’s role is to provide oversight, not to process transactions. They shouldn’t be the one entering invoices, reconciling accounts, or managing payroll.

When a treasurer doubles as the bookkeeper, the lack of separation of duties creates a serious internal control issue. Their strength is reviewing reports, asking questions, and ensuring that proper systems are in place—not crunching every number themselves. Having the treasurer also keep the books removes the checks and balances your nonprofit needs to protect its resources.

2. Micromanaging the Budget

A healthy budget reflects the priorities of the entire board and the leadership team—not the personal preferences of a single treasurer. While a treasurer should help guide the budgeting process, they should not rewrite line items in isolation or override staff leadership.

For example, a treasurer might have strong feelings about how much should be spent on office supplies or programming. But unilateral changes create confusion and discourage collaboration. A budget works best when the treasurer plays the role of a coach to the rest of the board—asking good questions, providing guidance, and helping the board see the big picture.

3. Making Solo Financial Decisions

No individual board member—including the treasurer—should have the authority to decide how money is spent or invested. Major financial decisions must follow policies approved by the board as a whole.

One best practice is setting dual signature policies: for example, requiring two signatures on checks or authorizations above a certain dollar amount. This way, the treasurer isn’t expected to monitor or approve every transaction personally—and they’re not left carrying the weight of big financial calls on their own. Without these guardrails, treasurers may step in where clear systems should already exist.

4. Micromanaging Daily Operations

Treasurers support the executive director and finance staff—but they should never insert themselves into day-to-day management.

That means they shouldn’t be questioning every single transaction, approving small expenses, or requiring staff to “run things by them” before ordinary purchases are made. If there are no systems in place, this can quickly spiral into micromanagement. The healthier path is to establish policies, thresholds, and internal controls that guide day-to-day operations—so the treasurer can stay focused on governance.

5. Serving as the Organization’s “Bank”

It may sound obvious, but treasurers should not personally hold or handle the organization’s money. Writing checks, managing cash, or being the sole signer on accounts creates unnecessary risk.

Healthy nonprofits spread these responsibilities across multiple people and put strong internal controls in place. When a treasurer becomes the “bank,” it creates confusion, burnout, and even opens the door for misconduct. A well-structured system protects both the treasurer and the organization.

Why Clarity and Systems Matter

A treasurer’s role should be about governance, not management. But for that to work, your nonprofit must already have the right systems, policies, and internal controls in place. Otherwise, your treasurer is left trying to fill gaps they were never meant to handle—micromanaging budgets, stepping into operations, or taking on financial tasks that belong elsewhere.

That’s where our Fractional CFO Services come in. We help churches and nonprofits develop systems, create internal controls, and implement financial policies that protect your organization and empower your treasurer to thrive in their proper role.

When you have these structures in place, your treasurer can focus on what really matters: providing oversight, safeguarding your mission, and building trust with your board, staff, and community.

Moving Forward with Confidence

Your treasurer was never meant to carry the whole financial weight of your organization. With the right systems and support, their role can shift from stressful to life-giving—helping your board stay focused on mission and impact.

If you’re ready to take that next step, start by downloading 5 Steps for Nonprofit Leaders to Thrive. This free resource gives you practical tools to strengthen your financial foundation and build the kind of clarity and confidence every leader needs.

And if your board is preparing for major financial or structural decisions,
our Fractional CFO services can help you establish the financial and governance systems that
create a culture of accountability, protect against fraud, and move your mission forward.

To start the conversation, visit terisaclark.com/you.

I look forward to serving you!