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Standard Practices

Dan Fishman November 11, 2021

Most nonprofit treasurers find it helpful to keep a calendar of important dates. Automatic electronic notifications help to identify important upcoming tasks.

It’s common for nonprofit organizations to have a policy that the treasurer must deposit checks within a week of their receipt and not receive cash back from the transaction. Another helpful policy is for the treasurer to endorse checks with a statement of “for deposit only to ABC Bank, account #1234” or to use an inked stamp with the same information.

It’s also customary for nonprofit boards to have a policy that the treasurer either receives and reconciles bank statements or has check-writing privileges, but not both.

For the purposes of accountability, it’s good practice for nonprofit organizations to require two signatures, which are usually the signatures of two officers. Most treasurers also require outgoing checks to have a corresponding invoice, receipt or voucher.