The president of a nonprofit can also serve as treasurer; however, this creates a conflict of interest for one person to oversee operations and finances. Some states prohibit the president and treasurer positions from being held by the same person.
An effective treasurer develops systems for financial oversight, opens bank accounts, manages cash flow, and ensures financial stability.
Board of Directors and Executive Roles
The board of directors makes final decisions for a nonprofit. The executive director or CEO holds the highest-ranking position and oversees daily activities.
Limitations and Considerations
Founders can serve on the board, but they should not dominate decisions. A board can appoint officers who are not board members when directors do not have the time or willingness to fill roles like treasurer or secretary.
The critical leadership positions are:
- President
- Vice President
- Secretary
- Treasurer
The president is responsible for the nonprofit and its actions, while the treasurer is tasked with financial management.