Governance · Roles
Community group treasurer
You said yes at the AGM because nobody else would. Here’s the role, the year, the controls, and what a good handover looks like — written for someone who isn’t an accountant and shouldn’t have to become one.
Last updated 17 May 2026·8 min read
The treasurer’s role
The role's anchored in the trustees' collective duties (Charities Act 2011 + CC3 guidance), but with specific financial focus. The treasurer typically:
- Maintains the financial records — bank accounts, cash, invoices, receipts, gift aid
- Performs or oversees monthly reconciliation of bank statements to internal records
- Drafts the annual budget with the chair for board approval
- Reports finances to the board at each meeting (typically a one-page summary)
- Leads on banking arrangements — signatories, dual authority, account changes
- Prepares the year-end accounts (or oversees an external bookkeeper / accountant)
- Liaises with the independent examiner or auditor
- Files the annual return with the Charity Commission (or supports the secretary in doing so)
- Manages Gift Aid claims if applicable
- Holds the reserves policy on behalf of the board
The treasurer does not have personal liability beyond their general trustee liability. Sign-off remains a collective board responsibility — the treasurer prepares, the board approves.
The annual cycle
For a charity with a 31 March year-end (the most common for UK small charities), a typical cycle looks like:
| Month | Task |
|---|---|
| January – February | Draft annual budget for next financial year; circulate to board |
| March (year-end month) | Close cash books at 31 March; reconcile bank; reach out to examiner |
| April – May | Prepare draft accounts and Trustees' Annual Report; send to examiner |
| June – July | Examiner returns report; trustees approve final accounts |
| August – September | AGM (if applicable); accounts presented; new budget adopted |
| October – November | File annual return with Charity Commission (deadline 10 months from year-end = 31 January) |
| Throughout | Monthly board reports; quarterly Gift Aid claims; ongoing bank reconciliations |
Financial controls that actually work at small scale
Charity Commission CC8 (Preventing Charity Fraud) sets out the standard control framework. Translated for a £30k-a-year community group:
- Two-to-sign on bank payments. Both online and on cheques. The Charity Commission expects this; most specialist charity banks support it natively
- Separation of duties. Wherever practical, the person who authorises a payment is not the same as the person who initiates it. For very small charities the treasurer + chair counter-signing achieves this
- Independent bank statement review. Another trustee (not the treasurer) reviews the bank statement quarterly. Catches problems early
- Supplier verification. New supplier? Phone them on a number you find independently (not from the invoice). Common fraud vector is fake invoices with real-sounding details
- Bank-mandate change protocol.When a supplier or grant funder says “our bank details have changed,” phone them to verify. This is the single most common UK charity fraud type (push-payment fraud)
- Expense-claim limits. Below £X, treasurer approves; above £Y, board pre-approval needed
- Counter-signature on cheques (if still issued) — two signatories
- Fidelity guarantee insurance. Covers theft by employees, volunteers and trustees. Often bundled with trustee indemnity insurance. Increasingly required by major funders
Reserves and the reserves policy
Charity Commission CC19 (Charity reserves: building resilience) requires a written reserves policy and disclosure in the Trustees' Annual Report. SORP 2026 deepens the expectation — charities with no reserves or with negative net assets must now explain why they continue to be a going concern.
Reserves split into three categories:
- Restricted — donor-imposed conditions; cannot be used for other purposes
- Designated — board-allocated unrestricted funds set aside for a specific purpose; reversible by the board
- Free — unrestricted and unencumbered; available for any charitable purpose
There is no “right” level of free reserves — the policy must reflect the charity's risk profile, income volatility, and commitments. A common rule of thumb for small charities: 3–6 months of operating expenditure in free reserves.
Tools the modern small-charity treasurer uses
- Cloud accounting software. Xero, QuickFile (free for small charities), FreeAgent, QuickBooks. All support charity SORP. Xero and QuickBooks integrate with Virgin Money / Clydesdale charity accounts
- Bank-feed integration. Automatic transaction import from the bank, saving hours of manual entry
- HMRC Charities Online. Gift Aid claims filed online; software integration available
- Charity Commission My Charity Commission Account (MCCA). Individual login required for trustees and signatories since 2023
- Shared cloud storage (Google Drive, Dropbox) for records — accessible to other trustees, survives changes of treasurer
What to do when something goes wrong
- Suspected fraud or theft. Brief the chair immediately. Convene an emergency board meeting. Consider an RSI to the Charity Commission. If criminal activity is suspected, report to Action Fraud (0300 123 2040)
- Significant loss of funds (over 20% of income or £25,000). RSI to the Commission is required
- Late accounts.File as soon as possible; proactive contact with the Commission is materially better than radio silence. The Commission's double-defaulter inquiry brought 36 charities into line in 2024–25 — late filing escalates to misconduct findings if it persists
- Bank account closure or refusal. See community group bank account for the escalation route
Related guides
Community group governance basics →
The wider trustee duties and decision-making framework.
Charity accounting thresholds →
R&P vs accruals, IE, audit — the thresholds the treasurer manages around.
Independent examination →
Finding an examiner, what they need from the treasurer.
Gift Aid for community groups →
The 25% top-up most small charities under-claim.
Community group bank account →
Where to bank, who accepts which legal form, the de-risking problem.
Community association constitution template →
The governing document that defines your role.
Sources
- Charities Act 2011 — trustee duties and accounts
- Charity Commission CC3 The essential trustee
- Charity Commission CC8 Charities and fraud: a guide to managing risk
- Charity Commission CC19 Charity reserves: building resilience
- Charities SORP 2026 (for accruals accounts)
- HMRC Gift Aid guidance (Charities Online)
- Association of Chairs, NCVO and ICAEW charity treasurer resources