You are at risk of becoming overwhelmed in your NFP position if defined roles and responsibilities are not set. It is important that everyone understands where their positions start and end to avoid confusion and that the option of delegating responsibilities is laid out at the forefront.

Defining Roles

Concise documents have to be created so that each person in the NFP, from the volunteer treasurer to the CEO, knows what they should be doing. Each individual, whether paid or operating as a volunteer, needs to understand their particular role and function to maintain efficient order and management on a daily basis.

A volunteer treasurer must maintain up-to-date records and an audit trail for all transactions, as an example. A treasurer also has to ensure that the organisation complies with tax regulations such as GST, fringe benefits and payroll tax, and keeps the board informed of financial events, trends and problems. Without such clear boundaries, volunteers and employees will be stepping on each other’s toes. These role definitions make sure that procedures are in place to avoid fraud or cash mismanagement. Controls on expenditure and income generation are there for a reason and must be enforced by the appropriate staff and overseen by the board.

While financial management is a team responsibility, specific duties will be assigned to the treasurer, members of the governing body, the chair and staff.

Delegating Duties

While some tasks are role specific and should never be delegated, there are duties that can be passed throughout the NFP to ease the burden during busy periods. Staff or volunteers may be able to take on some assignments that concern the day to day running of the NFP. A sub-committee may be able to handle a specific query or item.

The scope of the delegation authority should be set down in writing and agreed upon by everyone involved and all significant decisions reported back to the board as quickly as possible.

Delegation allows you to make the most of your time and skills. And it also benefits other team members and volunteers enabling them to reach their full potential and learn new skills. Remember, however, that while you can transfer particular tasks or duties, you cannot ultimately transfer your responsibility or accountability.

Defining roles and delegating responsibilities will go a long way in ensuring a smooth running of your not-for-profit all year round.