Last updated 2026-07-25
TL;DR
A nonprofit board treasurer tracks income and expenses, keeps the books reconciled, reports finances to the board, safeguards cash, and makes sure the group files whatever version of Form 990 the IRS requires each year. Small orgs (under $50,000 gross receipts) usually just file the e-Postcard, Form 990-N [1].
What is a treasurer?
A treasurer is the board member (or officer) responsible for an organization's money: tracking it, protecting it, and reporting on it honestly to the rest of the board. In a nonprofit, that usually means managing a checking account, maybe a savings account or small investment account, and making sure every dollar that comes in or goes out gets recorded somewhere a stranger could later understand. The treasurer isn't the accountant, though many small nonprofits ask the treasurer to do accountant-level work anyway because there's no budget to hire one. Legally, the treasurer is an officer with fiduciary duties, meaning duties of care and loyalty to the organization, more than a bookkeeper. State nonprofit corporation laws generally require a president/chair, secretary, and treasurer (or equivalent officers), though titles and exact duties vary by state and by the group's own bylaws. If you just got handed this job at a booster club, PTO, or youth sports league, the honest version is: you're now the person who has to say yes or no when someone asks "can we afford this?" and the person who has to explain, in plain English, where the money went.
What does a treasurer do, exactly?
Day to day, a treasurer does five things on repeat: record transactions, reconcile the bank account, pay bills and file receipts, report to the board, and file required tax paperwork on time. Recording transactions means every deposit and every payment gets logged, with a date, amount, purpose, and who approved it. Reconciling means matching your internal ledger against the actual bank statement every month, more than once a year when someone asks. Reporting means bringing a real financial statement, not a vague verbal update, to every board meeting: cash on hand, income since last meeting, expenses since last meeting, and anything unusual. A lot of new treasurers underestimate the filing piece. Even a tiny booster club with no paid staff and a few thousand dollars in the bank still has an annual IRS filing obligation if it has 501(c)(3) or other tax-exempt status, and missing three years in a row triggers automatic revocation of that status [1]. That's the single most common disaster this site exists to help people avoid. Beyond the basics, a good treasurer also builds (or maintains) a simple budget, keeps signers on the bank account current when officers change, and makes sure nobody, including the treasurer, has unchecked access to cash without a second set of eyes.
What do treasurers do in a club, specifically?
Club treasurers, whether it's a PTO, a youth soccer league, or a school booster group, generally handle a narrower, more hands-on version of the same job: collecting dues or fundraiser proceeds, paying vendors (uniforms, tournament fees, concession supplies), and reporting to a small, mostly volunteer board. A club treasurer of a club typically: - Opens and manages the bank account, and controls who else is a signer.
- Tracks fundraiser income separately from dues or membership income, since these often have different rules for reporting or state registration.
- Handles cash from bake sales, concession stands, or raffles, which is the highest-risk part of the job because cash is hard to trace.
- Prepares a treasurer's report for every meeting, even a short one-page summary.
- Files the group's annual IRS return (Form 990-N, 990-EZ, or 990, depending on size) and any required state charitable filings. Club treasurer work is often seasonal and spiky. A concession stand at a Friday night game might handle more cash in three hours than the group sees the rest of the month, which is exactly why cash-handling controls matter more for clubs than for organizations with steady, predictable income.
What is Form 990, and does a small nonprofit have to file it?
| Normally $50,000 or less | Form 990-N (e-Postcard) [3] | |
|---|---|---|
| Gross receipts under $200,000 AND total assets under $500,000 | Form 990-EZ (or full 990) [4] | |
| Gross receipts $200,000 or more OR total assets $500,000 or more | Form 990 (full return) [4] | |
| Private foundations (any size) | Form 990-PF | The IRS's own instructions state that an organization "may file Form 990-EZ ... instead of Form 990 if it has gross receipts less than $200,000 and total assets less than $500,000 at the end of the year" [4]. Most booster clubs, PTOs, and small youth-sports leagues land in the 990-N or 990-EZ range. Filing late doesn't usually carry an instant penalty for 990-N filers, but missing it three years running is what triggers automatic revocation, covered below. If you want the full mechanics of the e-Postcard, see form 990-n and the broader form 990 overview. |
Form 990 is the annual information return the IRS requires most tax-exempt organizations to file. It's not a tax bill in most cases (exempt orgs generally don't owe income tax on mission-related income), it's a disclosure document: revenue, expenses, assets, and governance details, filed so the IRS and the public can see how the organization is run [2]. Which version you file depends on size. The IRS sets these thresholds: | Gross receipts / assets | Form required |
What is the 990 tax form used for?
The 990 tax form is used to give the IRS, state regulators, donors, and the public a yearly financial snapshot of a tax-exempt organization. It reports total revenue by source (donations, program fees, fundraising), total expenses by category, net assets, and answers a series of governance questions (does the board review the return before filing, does the org have a conflict-of-interest policy, and so on). It's public record. Anyone can look up a nonprofit's recent 990s through the IRS's Tax Exempt Organization Search tool, which is also where the underlying data behind third-party nonprofit lookup sites comes from [5]. That transparency is the point: donors, grantors, and sometimes school administrations use the 990 to decide whether an organization is trustworthy with money. For a small booster club, the 990-N version asks for almost nothing beyond your EIN, tax year, legal name, address, and confirmation that gross receipts are $50,000 or less [3]. The full 990 tax form and irs form 990 ask for much more detail, which is one more reason to know which threshold you're actually in before you assume filing is simple.
What happens if a treasurer misses a 990 filing?
Nothing happens after one missed year for a 990-N filer specifically, since the e-Postcard itself carries no late-filing penalty in most cases. But the IRS is explicit that failing to file for three consecutive years results in automatic revocation of tax-exempt status, by operation of law, no notice or hearing required [1]. The IRS states: "Organizations that fail to file required Form 990-series returns for three consecutive years automatically lose their tax-exempt status... this is required by law" [1]. Once revoked, the organization is treated as a taxable entity going forward, donations may no longer be tax-deductible to donors, and getting reinstated requires a fresh exemption application, sometimes with retroactive relief available through IRS Revenue Procedure 2014-11 depending on your prior filing history and organization size (confirm current procedures with the IRS, since guidance updates periodically) [6]. For 990-EZ and full 990 filers, there are also separate late-filing penalties measured per day the return is late, so waiting it out isn't free even before you hit the three-year revocation mark. This is the scenario that catches volunteer-run booster clubs constantly: officers turn over every year or two, nobody remembers who filed last, and by the time someone checks, the IRS has already pulled the exemption. If you inherited a group that hasn't filed in a while, check status first using the IRS Tax Exempt Organization Search before assuming anything.
What does a treasurer do at board meetings?
At every board meeting, the treasurer's job is to answer three questions clearly: how much money do we have, how much came in and went out since last time, and is anything unusual or concerning. A workable treasurer's report is short. It typically includes: beginning cash balance, total income (broken down by source, like dues, fundraisers, sponsorships), total expenses (broken down by category), ending cash balance, and a note on anything outstanding (unpaid invoices, checks not yet cashed, upcoming big expenses). Some boards also want a comparison to budget, showing whether spending is on track. The treasurer should also flag anything that needs board approval before it happens, not after. Spending authority limits (say, anything over $500 needs board sign-off) belong in the bylaws or a standing financial policy, and the treasurer is usually the one enforcing that line day to day. Minutes should record that the treasurer's report was given and, ideally, that the board reviewed and accepted it. That paper trail matters later if anyone (a new officer, an auditor, the IRS) ever asks what the board actually knew and when.
What financial controls should a treasurer put in place?
The single biggest risk in a small nonprofit isn't a treasurer stealing money on purpose. It's one person having so much unchecked control that mistakes, or worse, are invisible until it's too late. Basic controls fix that. At minimum: require two signers on any check above a set dollar amount, never let the same person both receive cash and record it without a second person counting, use a bank account, not a personal account or a shoebox, for all club funds, and reconcile the bank statement every single month against your ledger, even in slow months. For cash-heavy fundraisers like concession stands or raffles, count cash with two people present, both signing a count sheet, before it ever gets deposited. Deposit it promptly rather than letting it sit in someone's car or kitchen for a week. None of this requires expensive software. A shared spreadsheet with locked formulas, or a low-cost accounting tool built for small nonprofits, is enough for most PTOs and booster clubs. What matters is consistency: the same process every time, documented, so a new treasurer next year can pick it up without guessing.
How is a nonprofit treasurer different from a for-profit CFO or bookkeeper?
A nonprofit treasurer is almost always a volunteer board officer, not a paid finance professional, and the job is smaller in scope but not smaller in responsibility. A for-profit CFO manages complex capital structures, investor relations, and strategic finance. A treasurer for a booster club manages a checking account, a spreadsheet, and an annual filing. But the fiduciary duty is real either way. Board members, including the treasurer, owe the organization duties of care and loyalty under state nonprofit corporation law, and a treasurer who signs off on sloppy books or ignores a filing deadline can be personally exposed to that failure, even without pay. This is why some state nonprofit statutes explicitly address officer liability and indemnification, and why bylaws should spell out what the treasurer is and isn't personally on the hook for. Confirm the specifics with the IRS and your state charity office, since state corporate law on officer duties varies. The other big difference is transparency. A private company's books usually stay private. A nonprofit's 990 is public, searchable, and often reviewed by donors, school administrators, or reporters. That public accountability is baked into the treasurer role in a way it rarely is for a corporate bookkeeper.
What should a new treasurer do in the first 30 days?
Get access to everything first: online banking login, checkbook, any accounting software, the EIN, the last three years of filed 990s, and the bylaws. If the outgoing treasurer can't produce the last filed 990-N or 990-EZ, check the IRS Tax Exempt Organization Search yourself to confirm the organization's current status hasn't already lapsed [5]. Reconcile the bank account against the books going back at least three months, ideally further, to catch any errors or gaps before they become your problem. Confirm who the current authorized signers are on the bank account and remove anyone no longer on the board. Check the state charity registration status too, more than the federal one. Many states require nonprofits soliciting donations to register with a state charity official or attorney general's office, separately from the IRS, and that registration can lapse just as easily as a federal filing (confirm requirements with your state charity office, since rules and thresholds vary widely by state). Finally, write down or update a one-page procedures memo: how deposits get made, who approves what spending, when the annual filing is due. Future-you, and whoever takes this job after you, will be grateful. A State-Personalized Treasurer Kit is one option if you want that setup done for you rather than built from scratch, but a plain document works fine too, as long as someone actually writes it.
What is Form 990-N and who has to file it?
Form 990-N, often called the e-Postcard, is the shortest version of the annual IRS filing, required for tax-exempt organizations whose gross receipts are normally $50,000 or less per year [3]. It's filed entirely online through the IRS website, takes a few minutes, and asks for basic identifying information rather than detailed financials. The IRS describes it plainly: organizations "whose annual gross receipts are normally $50,000 or less" are eligible to file the e-Postcard instead of a longer return [3]. There's no paper option and, as of current IRS guidance, no fee to file it, though that could change, so confirm current details with the IRS before assuming. Most booster clubs, small PTOs, and youth sports leagues fit squarely in this category. If your group ever crosses the $50,000 gross receipts threshold in a given year, even once, you'd need to file the 990-EZ or full 990 for that year instead, so it's worth tracking gross receipts against that number as the year goes, more than at filing time. See the 990n and 990-tax-form pages for the filing steps.
Frequently asked questions
What does a treasurer do?
A nonprofit treasurer records income and expenses, reconciles the bank account monthly, reports finances to the board at each meeting, manages cash-handling controls, and ensures the organization files its required annual IRS return, such as Form 990-N, 990-EZ, or 990, and any state charity filings on time.
What is a treasurer?
A treasurer is an officer of a board, usually a volunteer in nonprofit and club settings, responsible for managing and reporting on the organization's money. The role carries fiduciary duties of care and loyalty under state nonprofit law, more than bookkeeping tasks.
What do treasurers do day to day?
Day to day, a treasurer logs deposits and payments, files receipts, pays approved bills, and keeps the books current so that reconciling the bank statement each month takes minutes instead of hours. Most of the job is small, repeated, boring tasks done consistently.
What does a treasurer do in a club, like a PTO or booster group?
A club treasurer manages the bank account, tracks dues and fundraiser income separately, pays vendors like uniform suppliers or tournament fees, handles cash from events like concession stands, reports to the board regularly, and files the group's annual IRS return.
What does a club treasurer do differently from a big nonprofit treasurer?
A club treasurer usually handles smaller, more seasonal money flows (dues, bake sale cash, tournament fees) with less formal infrastructure, and files the simplest IRS return, Form 990-N, if gross receipts stay under $50,000 a year, per current IRS guidance.
What is Form 990?
Form 990 is the IRS's annual information return for tax-exempt organizations, reporting revenue, expenses, assets, and governance practices. It's public record, and which version an organization files (990-N, 990-EZ, or full 990) depends on its gross receipts and total assets.
What is a 990 tax form used for?
The 990 tax form gives the IRS, state regulators, and the public an annual financial and governance snapshot of a tax-exempt organization. Donors and grantors often review it to judge financial health and transparency before giving money.
What is the 990-N and who needs to file it?
Form 990-N (the e-Postcard) is the shortest IRS filing, for tax-exempt organizations with gross receipts normally $50,000 or less per year. It's filed online, asks only for basic identifying details, and has no late-filing fee under current IRS rules.
What happens if my nonprofit doesn't file the 990 for several years?
The IRS automatically revokes tax-exempt status if an organization fails to file any required 990-series return for three consecutive years, with no advance notice or hearing. Reinstatement requires a new exemption application, and donations may lose tax-deductible status in the meantime.
Does a small booster club or PTO really need to file taxes?
Yes. Even a booster club or PTO with a few thousand dollars in the bank and 501(c)(3) status must file an annual IRS return, usually the 990-N e-Postcard, or risk automatic revocation of its tax-exempt status after three missed years.
Is a nonprofit treasurer personally liable for mistakes?
Potentially, yes, depending on state nonprofit corporation law and the organization's bylaws. Treasurers owe fiduciary duties of care and loyalty; confirm specifics, including any indemnification protections, with your state's nonprofit statute and consider that this is not legal advice.
How do I check if my nonprofit's tax-exempt status has already been revoked?
Search your organization's name or EIN in the IRS Tax Exempt Organization Search tool, which shows current exemption status and whether an organization appears on the Auto-Revocation List. Do this before assuming past filings were handled correctly.
What's the difference between Form 990, 990-EZ, and 990-N?
Form 990-N (e-Postcard) fits organizations with gross receipts normally $50,000 or less. Form 990-EZ fits those with gross receipts under $200,000 and total assets under $500,000. Full Form 990 is required above those thresholds, per current IRS instructions.
Do treasurers need accounting software?
Not necessarily. Many small booster clubs and PTOs manage fine with a well-organized spreadsheet and consistent monthly reconciliation. Low-cost nonprofit accounting tools help once transaction volume grows, but the process and discipline matter more than the tool.
Sources
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations, Form 990-N (e-Postcard): Organizations with gross receipts normally $50,000 or less may file Form 990-N
- IRS, Automatic Revocation of Exemption: Failing to file required 990-series returns for three consecutive years results in automatic revocation of tax-exempt status
- IRS, Form 990 Series: Which Forms Do Exempt Organizations File: Form 990 is the annual information return used by tax-exempt organizations to report finances and governance
- IRS, Instructions for Form 990-EZ: Organizations with gross receipts under $200,000 and total assets under $500,000 may file Form 990-EZ instead of Form 990
- IRS, Tax Exempt Organization Search: Organizations and the public can check current tax-exempt status and revocation status using this IRS search tool
- IRS, Revenue Procedure 2014-11: Organizations that have had tax-exempt status automatically revoked may apply for retroactive reinstatement under specific procedures depending on filing history and organization size