Last updated 2026-07-24
TL;DR
A club treasurer tracks money in and out, keeps clear records, reports finances to the board, and files the group's annual IRS return (Form 990, 990-EZ, or 990-N). Small nonprofits with under $50,000 in gross receipts usually file the 990-N e-Postcard. The job is bookkeeping plus accountability, not tax expertise.
What does a treasurer do?
A treasurer is the person responsible for a club's money: tracking it, protecting it, and reporting on it honestly. That means recording every deposit and expense, reconciling the bank account, keeping receipts, and giving the board a clear picture of what the group can actually afford. In a volunteer organization like a booster club, PTO, or youth sports league, the treasurer is usually not a professional accountant. That's fine. The job doesn't require a CPA license. It requires consistency: writing things down the same way every time, keeping money separate from personal funds, and never letting one person be the only set of eyes on the books. Most small nonprofits are structured so the treasurer answers to the board, not the other way around. The board approves the budget and major spending; the treasurer executes it and reports back. If your bylaws don't spell this out clearly, that's the first thing to fix when you take over. The IRS doesn't require a specific treasurer job description for tax-exempt status, but state nonprofit laws often do require certain officer roles. Confirm with your state's nonprofit statute or attorney general's charity office what your state requires for an entity of your type.
What is a treasurer, exactly?
A treasurer is an elected or appointed officer of a club, association, or nonprofit who has legal and practical responsibility for the organization's funds. The title implies both a bookkeeping function (recording transactions) and a fiduciary one (acting in the organization's best financial interest, not their own). Fiduciary duty is a real legal concept, more than a phrase. Officers and directors of nonprofits generally owe duties of care, loyalty, and obedience to the organization: making informed decisions, avoiding self-dealing, and following the organization's own governing documents and applicable law. State nonprofit corporation statutes (and sometimes your state's version of the Model Nonprofit Corporation Act) spell this out; confirm with your state's nonprofit corporation code for the exact standard that applies. Practically, this means a treasurer who writes checks to themselves without board approval, who mixes club cash with personal cash, or who can't produce records when asked isn't just doing a bad job. They may be violating a legal duty. That's part of why handoffs and audits matter so much in these small, volunteer-run organizations: there's often no professional staff checking anyone's work.
What do treasurers do day to day, month to month, and year to year?
The job breaks down into three time horizons, and new treasurers often only think about the first one. Day to day: collect and deposit money (concession sales, dues, ticket sales), pay approved bills, log every transaction with a date, amount, and purpose, and keep receipts or invoices attached to each entry. Month to month: reconcile the bank statement against your own records, report account balances to the board at each meeting, flag any budget variance (spending more or less than planned), and make sure two people, not one, have visibility into the account. Year to year: prepare an annual financial report for the membership, work with the board on next year's budget, and file the organization's annual return with the IRS. That last one trips up more volunteer treasurers than anything else, because most people don't realize a tiny booster club with a $12,000 bank balance still has to file something with the IRS every single year, even if it owes zero tax [1].
What does a treasurer do in a club versus a formal nonprofit?
The core duties are the same, but the stakes differ. An informal club, one that has never applied for federal tax-exempt status, still needs someone tracking money, but there's no annual IRS filing requirement unless the club has applied for and received exempt status under section 501(c) of the tax code. A formal 501(c)(3) or 501(c)(4) organization has an EIN, has (usually) filed Form 1023 or 1024 for recognition of exemption, and is required to file an annual return every year: Form 990, 990-EZ, or 990-N depending on size [2]. Missing three years in a row triggers automatic revocation of tax-exempt status, no warning letter required beyond the standard notices the IRS already sends [3]. Here's the practical difference for a treasurer: if your booster club or PTO is a recognized 501(c)(3), you have a hard annual deadline (the 15th day of the 5th month after your fiscal year ends, so May 15 for a calendar-year filer) and real consequences for missing it three years running [2][3]. If you're an informal, unincorporated club with no EIN and no exemption on file, you don't have that filing obligation, but you also don't have any of the benefits (donor tax deductibility, formal liability protections) that come with it. Many booster clubs that think they're 'informal' actually got an EIN and filed for exemption years ago and nobody currently on the board remembers. Check your EIN status directly with the IRS before assuming either way.
What is Form 990?
| Form 990-N (e-Postcard) | Smallest orgs | Normally ≤ $50,000 [2] | |
|---|---|---|---|
| Form 990-EZ | Mid-size orgs | Gross receipts < $200,000 AND total assets < $500,000 [2] | |
| Form 990 (full) | Larger orgs | Gross receipts ≥ $200,000 OR total assets ≥ $500,000 [2] | Private foundations file a different version, Form 990-PF, regardless of size [2]. Almost no booster club or PTO is structured as a private foundation, but it's worth confirming your classification if you're not sure. Most small booster clubs, PTOs, and youth sports groups fall into the 990-N bucket. If you want the full mechanics of what goes into each version, see form 990 and the 990 tax form breakdown. |
Form 990 is the annual information return that tax-exempt organizations file with the IRS. It's not an income tax return in the usual sense (most exempt organizations owe no tax), it's a public disclosure document: revenue, expenses, assets, program activities, and governance practices, all reported to the IRS and, in most cases, publicly viewable [4]. The IRS itself describes it plainly: "Form 990 is used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033" [1]. Section 6033 of the Internal Revenue Code is what actually creates the filing requirement. There are three main versions small clubs deal with: | Form | Who files it | Gross receipts threshold |
What is a 990 tax form, in plain terms?
Think of it as your club's annual report card to the IRS, not a bill. You're not calculating tax owed in most cases. You're disclosing what came in, what went out, what you're holding onto, and how the organization is run. The form asks about program activities (what did the money actually fund), compensation of officers and key employees, largest contributors, related-party transactions, and whether the organization has policies on conflicts of interest and document retention. Even small organizations filing the simplified 990-EZ answer questions about governance, more than dollars [5]. One detail that surprises new treasurers: 990s (other than the 990-N, which contains minimal data) are public record. Anyone can request copies, and many are posted online through the IRS's Tax Exempt Organization Search tool or third-party databases. Donors, sponsors, and school administrators sometimes check a booster club's 990 before writing a check. Sloppy or late filings are visible to everyone, more than the IRS. For the mechanics of e-filing and what specific line items mean, see irs form 990 and [990](/articles/treasurer-basics/990).
What is the 990-N and who has to file it?
The 990-N, nicknamed the e-Postcard, is the simplest version of the annual return. It's for tax-exempt organizations whose gross receipts are normally $50,000 or less [2]. It's filed entirely online through the IRS's Tax Exempt Organization Search / e-Postcard system, takes maybe 10 minutes once you have the right information, and asks for basics: EIN, tax year, legal name and address, an officer's name, and confirmation that gross receipts are under the threshold [6]. The IRS description is blunt: "Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less" file the 990-N "unless they choose to file a complete Form 990 or Form 990-EZ instead" [2]. Note that word 'normally.' The IRS averages receipts over the current and prior two years for orgs that have been around at least three years, so one unusually big fundraiser year doesn't automatically bump you into 990-EZ territory [2]. There is no paper form for the 990-N. It's online-only. If your club has never filed anything, or hasn't filed in years, the first step is confirming your EIN and exempt status are still active before you try to submit one. See 990n and form 990-n for the filing walkthrough.
What happens if a club treasurer misses the 990 deadline?
One missed year usually isn't fatal. Three missed years in a row is. Federal law (added by the Pension Protection Act of 2006) requires the IRS to automatically revoke the tax-exempt status of any organization that fails to file its required 990-series return for three consecutive years [3]. The IRS states it directly: organizations that don't file "for three consecutive years" will have their exempt status "automatically revoked" and "this revocation is effective as of the filing due date of the third annual return" [3]. The practical fallout: the organization is no longer exempt from federal income tax, donations made after the revocation date are no longer tax-deductible under section 170, and the club may owe corporate income tax on revenue going forward until reinstated. Many state charity registrations and property tax exemptions key off federal exempt status too, so revocation can ripple into state-level problems. Recovery is possible through retroactive reinstatement, filing Form 1023 or 1024 again along with the delinquent returns, and in many cases paying a reduced application fee if the organization qualifies for streamlined retroactive reinstatement within 15 months of revocation . It's a real process with real paperwork, but thousands of small nonprofits go through it every year. Don't panic; just don't ignore it either.
What does a club treasurer do besides taxes and filings?
Filing is maybe 5% of the job by time spent, even though it causes 80% of the anxiety. The rest of the job is quieter and more constant. Cash controls: two-signature rules on checks above a set dollar amount, a rule that the treasurer never counts concession-stand cash alone, and a habit of depositing cash within a day or two rather than storing it in someone's car trunk. Small-organization fraud studies consistently find that a lack of separation of duties, one person controlling deposits, records, and disbursements, is the single biggest enabler of embezzlement in small nonprofits . Budgeting: working with the board before the season or school year starts to set a realistic budget, then tracking actual spending against it monthly so nobody discovers a shortfall in May. Reporting: giving the board (and often the full membership) a clear, current balance sheet and income statement at every meeting. "Clear" means a parent with no accounting background can read it and understand where the money went. Record retention: keeping bank statements, receipts, board minutes about financial decisions, and prior tax filings for several years. The IRS generally recommends keeping records that support a return for as long as they may be relevant, and many state charity offices require nonprofits to retain financial records for a set number of years; confirm the specific retention period with your state's charity regulator. Handoff prep: documenting account logins, signers on the bank account, and where records live, so the next treasurer isn't starting from zero. This is where a surprising number of clubs fall apart: the outgoing treasurer moves, graduates their kid, or just burns out, and nobody can find the checkbook.
Does a treasurer need to know about state raffle and fundraising rules too?
Usually, yes, at least at a basic level. If your booster club runs a raffle, 50/50, bingo night, or silent auction, most states require a specific license or registration before you run it, separate from your federal tax-exempt status. Rules vary widely: some states cap prize values, some require a licensed game operator, some require the proceeds go entirely to specific charitable purposes, and some exempt small one-time raffles from licensing altogether. There's no single federal raffle law; this is state-by-state and sometimes county-by-county. Confirm the exact rules with your state's charity gaming office or attorney general's charitable division before you sell a single ticket. A treasurer who is also handling raffle cash needs the same separation-of-duties habits mentioned above: someone else should count and verify ticket sales against cash collected, and the reconciliation should happen the same night, not days later.
What should a new treasurer do in the first 30 days?
Get the prior three years of bank statements and reconcile them yourself, even if the last treasurer says everything's fine. Confirm the EIN and check the organization's exempt status and filing history using the IRS's public search tools. Find out which 990 version applies based on gross receipts (990-N, 990-EZ, or full 990) [2]. Get added as a signer on the bank account, and get the prior signer removed if they're no longer active. Ask for the bylaws and any board policy on spending approval limits. Confirm whether your state charity registration is current, separately from federal status; many states require an annual charity registration renewal in addition to the IRS filing. A lot of this legwork is exactly why some clubs use a prebuilt reference kit rather than reinventing it each year. The BoosterLedger $99 State-Personalized Treasurer Kit is built around this handoff moment specifically: state-specific raffle and registration reminders, a bookkeeping template, and a 990 decision-tree, so a first-time treasurer isn't guessing at which form applies. It's a reference tool, not tax advice, and it doesn't replace confirming specifics with the IRS and your state charity office.
What's the difference between a treasurer and a bookkeeper or accountant?
A bookkeeper records transactions. An accountant (especially a CPA) can prepare and sometimes certify financial statements, give tax advice, and represent the organization before the IRS. A treasurer is an officer role, defined by your bylaws, with fiduciary responsibility for the organization's money; the actual bookkeeping work might be done by the treasurer personally, by a volunteer helper, or occasionally by a paid bookkeeper who reports to the treasurer. Most booster clubs and PTOs don't hire either a bookkeeper or an accountant. The treasurer does both jobs with a spreadsheet or basic accounting software. That's completely normal for an organization with a five- or six-figure annual budget. Where it gets risky is treating the treasurer as a substitute for professional tax advice when the organization's situation gets complicated (large endowment, paid staff, significant unrelated business income). At that point, a CPA who specializes in nonprofits is worth the cost, and the treasurer's job shifts from doing to overseeing.
Frequently asked questions
What does a treasurer do?
A treasurer tracks all money coming into and out of an organization, keeps accurate records, reconciles bank statements, reports the financial picture to the board, and handles required tax filings like the IRS Form 990-series return. It's a fiduciary role, more than a bookkeeping task.
What is a treasurer?
A treasurer is an elected or appointed officer responsible for an organization's funds, records, and financial reporting. The role carries a fiduciary duty, meaning the treasurer must act in the organization's best interest, not their own, under standards set by state nonprofit law.
What do treasurers do day to day?
Day to day, treasurers deposit money, pay approved bills, log every transaction with a date and purpose, and keep receipts. Monthly, they reconcile the bank account and report to the board. Annually, they prepare financial reports and file the required IRS return.
What does a treasurer do in a club specifically?
In a club setting (booster, PTO, youth sports), the treasurer collects dues and fundraiser proceeds, pays vendor and activity bills, reports balances at meetings, prevents one person from controlling all the cash, and files the annual 990-series return if the club is a recognized tax-exempt organization.
What does a club treasurer do that's different from a corporate treasurer?
A club treasurer usually handles the entire finance function personally, bookkeeping, banking, and reporting, with no paid staff support. A corporate treasurer typically oversees a finance team and focuses more on cash management strategy than data entry. The fiduciary duty concept is similar in both roles.
What is Form 990?
Form 990 is the annual information return the IRS requires most tax-exempt organizations to file under Internal Revenue Code section 6033. It reports revenue, expenses, assets, and governance practices, and it's a public document, not a tax bill in the usual sense.
What is a 990 tax form used for?
It's used to let the IRS, and the public, see how a tax-exempt organization raises and spends money, who runs it, and whether it follows basic governance practices like conflict-of-interest policies. It confirms the organization is still operating within its exempt purpose.
What is the 990-N e-Postcard?
The 990-N is the simplest annual IRS filing, for tax-exempt organizations with gross receipts normally $50,000 or less. It's filed online only, asks for basic identifying information, and takes about 10 minutes once you have your EIN and officer details ready.
Does a small booster club really have to file anything with the IRS?
If the club has applied for and received federal tax-exempt status (has an EIN and 501(c) recognition), yes, it must file a 990-series return every year even with zero tax owed. If the club never applied for exemption and has no EIN, this requirement doesn't apply, but confirm your actual status with the IRS first.
What happens if a treasurer misses three years of 990 filings?
The IRS automatically revokes the organization's tax-exempt status, effective as of the third missed filing deadline. Donations stop being tax-deductible and the organization may owe income tax going forward until it applies for reinstatement, sometimes through a streamlined retroactive process.
Can a club treasurer also run the raffle or bingo night?
They can, but they shouldn't count and record the proceeds alone. Most states require a separate raffle or charity gaming license apart from federal tax status, and someone other than the treasurer should verify cash collected against tickets sold before it reaches the books.
How long should a treasurer keep financial records?
Keep bank statements, receipts, meeting minutes on financial decisions, and prior tax filings for several years at minimum. Exact retention periods vary by state charity regulation, so confirm the required number of years with your state's charity registration office.
What's the first thing a new treasurer should check?
Confirm the organization's EIN and current tax-exempt status directly with the IRS, then pull the last three years of bank statements and 990 filings to make sure nothing was missed. Don't assume the prior treasurer's word is enough.
Is a club treasurer personally liable for mistakes?
Generally, volunteer officers get some liability protection under state nonprofit and volunteer protection laws, but that protection usually doesn't cover self-dealing, gross negligence, or willful misconduct. Confirm the specifics with your state's nonprofit statute; this isn't something to assume blanket protection on.
Sources
- IRS, About Form 990: Form 990 is used by tax-exempt organizations to provide the IRS information required by section 6033
- IRS, Automatic Revocation of Exemption: Organizations that fail to file for three consecutive years automatically lose tax-exempt status, effective the third year's filing deadline
- IRS, Form 990 Series Overview: Form 990 is an annual public disclosure return, not a standard income tax return
- IRS, Form 990-EZ instructions: Even the simplified 990-EZ requires governance and program activity disclosures
- IRS, e-Postcard (Form 990-N) filing system: 990-N is filed entirely online and requires basic identifying information
- Association of Certified Fraud Examiners, Report to the Nations: Lack of separation of duties is a leading contributor to occupational fraud in small organizations