Does a nonprofit have to have a treasurer?

Last updated 2026-07-25

does a nonprofit have to have a treasurer?

Not by that exact name, in most cases. The IRS doesn't require a specific officer title for tax-exempt status. What it does require is that an organized entity (corporation, trust, or association) has some structure of governance, and that structure needs to actually manage the money and file the right forms. State law is where the real requirement usually lives. Many state nonprofit corporation acts require officers who perform the functions of president, secretary, and treasurer, even if you're free to call them something else. California's Nonprofit Public Benefit Corporation Law, for example, requires a corporation to have a chairman of the board or a president, a secretary, and a treasurer or chief financial officer, though one person can hold more than one office in some cases ^[1]. New York's Not-for-Profit Corporation Law similarly requires a president, one or more vice-presidents, a secretary, and a treasurer, unless the certificate of incorporation or bylaws provide otherwise ^[2]. So the honest answer: check your state's nonprofit corporation statute and your own bylaws. If your bylaws say 'the officers shall include a treasurer,' you're bound by that even if state law would technically let you skip it. Confirm the specific requirement with your state's nonprofit corporation filing office or attorney general's charity division, because language and defaults vary by state.

what does a treasurer do?

A treasurer is the officer responsible for the organization's money: tracking it, reporting on it, and making sure it's handled honestly. In practice that means keeping the books current, reconciling the bank account every month, preparing a financial report for board meetings, and making sure required tax filings go out on time. For a small booster club or PTO, the treasurer is usually also the one who deposits fundraiser cash, pays vendors, tracks budget-to-actual for events, and pulls together whatever the board or the IRS needs at filing time. In larger nonprofits, the treasurer role is more oversight: reviewing financials prepared by staff, chairing the finance committee, and reporting to the full board. Either way, the treasurer answers a simple question for the group: where did the money come from, and where did it go? Good treasurers don't need an accounting degree. They need consistency: same process every month, receipts saved, two people involved in handling cash, and a habit of writing things down before they're forgotten.

what is a treasurer?

A treasurer is an elected or appointed officer of an organization who has legal and practical responsibility for its finances. The title exists across corporations, nonprofits, government bodies, and clubs, but the core job is the same everywhere: custody of funds, accurate records, and reporting. In a nonprofit context, the treasurer is typically a board officer, meaning they're elected by the board or membership under the bylaws, more than a hired bookkeeper. That distinction matters legally. An officer has fiduciary duties (duty of care, loyalty, and obedience to the mission) that a contracted bookkeeper doesn't automatically have. A treasurer can delegate day-to-day bookkeeping to a hired professional or volunteer, but the officer is still the one accountable to the board and, in many states, potentially personally liable for gross mismanagement. Worth noting: the treasurer title alone doesn't determine tax responsibilities. The IRS cares about who's the 'responsible party' on record with the EIN and who actually signs and submits filings, not what your bylaws call that person.

what do treasurers do, day to day and year-round?

Weekly/monthly	Record deposits and expenses, reconcile bank account
Quarterly	Budget-to-actual report to board, check on any state filings due
Annually	File IRS Form 990-N/EZ/full 990, renew state charity registration if required, prepare annual financial summary
At handoff	Transfer records, bank access, and login credentials to next treasurer	A lot of new treasurers underestimate the annual filing piece until they're staring down a deadline. If your organization's gross receipts are normally $50,000 or less, you likely just file the 990-N, the e-Postcard, which the IRS confirms is due by 'the 15th day of the 5th month after the close of your tax year' [4].

Day to day, a treasurer opens mail (or checks the inbox) for bank statements and invoices, records deposits and expenses, and keeps a running ledger. Monthly, they reconcile the bank statement against the books and prepare a short financial report for the board: cash on hand, income and expenses since the last meeting, and anything unusual. Annually, the job gets heavier. That's when a treasurer pulls together the full-year financial picture, decides which IRS form applies (Form 990-N, 990-EZ, or full Form 990, based on gross receipts and assets), and either files it or hands it to whoever does ^[3]. They also handle any state charity registration renewal, insurance certificate requests, and the handoff of records if a new treasurer is coming in. Here's a rough breakdown of the recurring workload: | Frequency | Task |

what is Form 990?

Form 990 is the annual information return that tax-exempt organizations file with the IRS to report income, expenses, activities, and governance. It's not a tax bill in most cases (exempt orgs generally don't owe income tax on mission-related revenue), but it's how the IRS and the public see what the organization is doing with its money. There are several versions depending on size. The IRS explains that organizations use Form 990, Form 990-EZ, or Form 990-N (e-Postcard) 'to provide the IRS with information required by section 6033' of the tax code, with the specific form depending on gross receipts and total assets ^[5]. Roughly speaking: organizations with gross receipts under $50,000 file the 990-N; those between $50,000 and $200,000 with under $500,000 in assets can usually file 990-EZ; anything larger generally files the full Form 990. Always confirm current thresholds directly with the IRS, since they get adjusted. Missing three years in a row triggers automatic revocation of tax-exempt status, which the IRS describes plainly: organizations that fail to file for three consecutive years 'will automatically lose their tax-exempt status' ^[6]. That's the scenario a lot of booster clubs and PTOs stumble into when treasurer turnover means nobody remembers the filing happened, or was supposed to happen.

what is the 990, in plain terms?

People often just say 'the 990' as shorthand for whichever version of the annual IRS information return applies to their organization. If someone asks 'did you file the 990 this year,' they usually mean 'did you complete whichever 990-series form fits our size.' It's worth being precise internally, though, because the versions are not interchangeable. The 990-N is an 8-question online form with no financial detail beyond confirming you're under the receipts threshold. The 990-EZ and full ^[990](/articles/treasurer-basics/990) require actual financial statements, program descriptions, and (for the full 990) potentially compensation disclosures for top staff. For a small volunteer-run booster club, 'the 990' is almost always the 990-N. That's good news: it takes maybe 10 minutes once you have your EIN and basic org info in hand. The bad news is that exact simplicity is why it's so easy to forget, since there's no accountant reminding you and no tax due to trigger urgency.

what is a 990 tax form used for?

The 990 tax form is used by the IRS to confirm a tax-exempt organization is still operating consistent with its exempt purpose, and it's used by the public, donors, and watchdog groups to see how the organization spends money. It functions as both a compliance filing and a transparency document. Donors and grantmakers frequently ask to see an organization's most recent 990 before writing a check, especially at the 990-EZ or full 990 level where program spending and executive compensation show up. Sites like ProPublica's Nonprofit Explorer and GuideStar/Candid republish these filings precisely because they're public record. For small nonprofits filing only the 990-N, there isn't much financial detail to review since the e-Postcard doesn't include a balance sheet. But the filing itself still matters: it's proof of active status. An organization that shows up in the IRS's exempt organization search as 'automatically revoked' is a red flag for any funder doing basic due diligence, and losing recognized exempt status means, per the IRS, that donations made after revocation generally aren't deductible for donors ^[6].

what does a treasurer do in a club?

In a booster club, PTO, or youth sports league, the treasurer usually wears more hats than a corporate CFO. Beyond bookkeeping, club treasurers often handle fundraiser cash counts, concession stand deposits, uniform and equipment purchase reimbursements, and the annual (or one-time) IRS filing. Specific tasks that come up constantly in clubs: setting up or maintaining a separate bank account in the organization's name (not a personal account), requiring two-person cash counts after events, keeping receipts for anything over a set dollar threshold, and preparing a simple year-end report parents and the school or league can see. Club treasurers also frequently deal with state raffle or gaming licenses if the group runs a 50/50 raffle or raffle basket fundraiser, since most states require a charitable gaming or raffle permit before running one, separate from IRS filing obligations. Confirm the specific licensing requirement and fee with your state's charity gaming office or attorney general's office, because rules and thresholds differ significantly by state.

what does a club treasurer do differently from a corporate one?

The core duties (record money in, record money out, report it) are the same. What differs is scale and formality. A corporate treasurer might oversee investments, debt, and cash flow forecasting across departments. A club treasurer is usually managing a checking account, a spreadsheet or simple accounting tool, and maybe a savings account for a big trip or equipment purchase. Club treasurers also turn over faster, often every one to two years as parents rotate off the board when their kids graduate or age out of the program. That turnover is the single biggest risk factor for clubs: institutional knowledge (passwords, filing history, vendor contacts) walks out the door with the outgoing treasurer if there's no handoff process. A clean handoff checklist matters more for clubs than almost any other control: bank account signers updated, EIN and login credentials transferred, prior year's 990-series filing confirmation saved somewhere the new person can find it, and a simple written summary of 'here's what we normally pay for and when.'

what does a treasurer of a club actually get held responsible for?

Legally, a treasurer who's also a board officer generally has fiduciary duties, meaning they can be held to a standard of reasonable care in handling the organization's money, even as an unpaid volunteer. Most states offer some liability protection for volunteer nonprofit officers acting in good faith and within the scope of their duties, but that protection typically doesn't cover gross negligence, fraud, or knowing violations of law. Practically, a club treasurer answers to the board or membership for: whether the books are accurate and current, whether required filings (IRS and state) got done, whether cash handling followed whatever controls the club has in place, and whether the financial report presented at meetings actually matches the bank statement. The most common real-world failure isn't fraud, it's neglect: nobody files the 990-N for three years, the group gets auto-revoked, and the next treasurer inherits a mess that takes months to fix through IRS reinstatement procedures. That's avoidable with a basic recurring calendar reminder and a written procedure the next person can follow without having to reconstruct history from old emails.

does every nonprofit need a treasurer, or can duties be split or outsourced?

Duties can be split, but someone still needs to hold the officer role and the accountability that comes with it, even if a bookkeeper or accountant does the actual data entry. Many small nonprofits hire an outside bookkeeper or use volunteer accounting help, while keeping a board member as the treasurer of record who reviews the work and signs off. That split is common and reasonable. What doesn't work well is having no one clearly accountable: a bookkeeper who reports to no one in particular, or a treasurer title that's vacant while 'someone' handles the checkbook informally. Boards should be able to answer, at any given moment, exactly one name for 'who is our treasurer and what have they confirmed about our finances this year.' If your organization is between treasurers or building the role from scratch, a State-Personalized Treasurer Kit ($99 one-time) can shortcut a lot of the setup: state-specific filing checklists, a handoff template, and the recurring deadlines that matter for your state and org size, so the new treasurer isn't guessing. It's not a substitute for an accountant or attorney, but it covers the paperwork skeleton a lot of volunteer treasurers wish someone had handed them on day one.

what happens if a nonprofit has no treasurer at all?

If the treasurer position sits vacant, two things tend to go wrong quietly. First, nobody's reconciling the bank account or watching cash flow, so errors and even honest mistakes compound instead of getting caught early. Second, nobody's tracking the IRS and state filing calendar, which is exactly how organizations drift into automatic revocation after three missed 990-series filings ^[6]. Some bylaws technically allow the president or another officer to absorb treasurer duties temporarily, and state law in some cases permits one person to hold multiple offices. But 'temporarily' has a way of becoming permanent in volunteer organizations, and combining the person who approves spending with the person who tracks spending removes a basic internal control. The fix is usually not complicated: recruit for the role explicitly (it doesn't need to be the most experienced accountant in the parent group, just someone consistent), give them the login credentials and prior filings, and put the annual filing deadline on a shared calendar that survives turnover, more than in one person's head.

Frequently asked questions

Does a nonprofit legally have to have a treasurer?

Not always by that exact title, but most state nonprofit corporation statutes require officers who perform treasurer-like functions, and your own bylaws usually require a treasurer position. Check your state's nonprofit corporation act and your bylaws to confirm the specific requirement, since defaults vary by state.

What does a treasurer do?

A treasurer tracks all money coming in and going out, reconciles the bank account, prepares financial reports for the board, and handles or oversees required IRS and state filings. In a small club, they also often manage fundraiser cash and reimbursements directly.

What is a treasurer, exactly?

A treasurer is an officer, usually elected under an organization's bylaws, who is responsible and accountable for the organization's finances. It's a fiduciary role, more than a bookkeeping task, meaning the treasurer can be held to a standard of care by the board or, in some cases, by law.

What is Form 990?

Form 990 is the IRS's annual information return for tax-exempt organizations, used to report income, expenses, and activities under Internal Revenue Code section 6033. Depending on size, organizations file the full Form 990, the shorter 990-EZ, or the 990-N e-Postcard for small orgs.

What is the 990 tax form used for?

It's used by the IRS to confirm ongoing eligibility for tax-exempt status and by the public and donors to review how a nonprofit spends money. Filings are public record and often published on sites like ProPublica's Nonprofit Explorer.

What does a treasurer do in a club, specifically?

Club treasurers manage the bank account, count and deposit fundraiser cash, track budget versus actual spending, reimburse volunteers and coaches, and file the applicable IRS 990-series form each year. Many also handle state raffle or charitable gaming license paperwork if the club runs raffles.

What happens if a nonprofit doesn't file a 990 for several years?

The IRS states that organizations failing to file for three consecutive years 'will automatically lose their tax-exempt status.' Reinstatement requires a formal application process with the IRS, and donations made during the revoked period generally aren't tax-deductible for donors.

Can one person be both president and treasurer of a nonprofit?

In some states, yes, one person can hold multiple officer roles unless the bylaws or state law say otherwise. California's nonprofit law, for instance, allows the same individual to serve as both, though it prohibits the same person from holding both secretary and either president or treasurer simultaneously in that specific combination. Confirm with your state's nonprofit statute.

Is a treasurer personally liable for nonprofit financial mistakes?

Volunteer officers generally get some liability protection under state law for good-faith actions within their duties, but that protection typically doesn't cover gross negligence, fraud, or willful violations. A treasurer who ignores clear red flags can face personal exposure depending on state law and the facts involved.

What's the difference between Form 990-N and Form 990-EZ?

Form 990-N (the e-Postcard) is for organizations with gross receipts normally $50,000 or less and requires only basic identifying information, no financials. Form 990-EZ is for mid-sized organizations and requires actual financial statement detail. Confirm current thresholds directly with the IRS.

Do club treasurers need a raffle or gaming license separate from IRS filings?

Often yes. Most states require a charitable gaming or raffle permit before a nonprofit runs a raffle, 50/50, or similar game, and this is entirely separate from federal IRS filing requirements. Confirm the specific license, fee, and application timeline with your state's charity gaming office or attorney general.

What should a new treasurer do first when taking over the role?

Get access to the bank account and any online filing logins, request the last three years of financial records and 990-series filings, confirm the organization's IRS status isn't revoked, and put the next filing deadline on a calendar right away. Don't assume the prior treasurer's system was documented anywhere.

Can a nonprofit outsource treasurer duties to a bookkeeper instead of electing an officer?

The day-to-day bookkeeping can be outsourced, but most nonprofits still need someone holding the treasurer officer title who reviews the work and reports to the board. A bookkeeper with no accountable officer overseeing them is a governance gap, not a solution.

Sources

1. California Corporations Code, Nonprofit Public Benefit Corporation Law: California requires nonprofit corporations to have officers including a treasurer or chief financial officer, with some multi-office restrictions
2. New York Not-for-Profit Corporation Law Section 713: New York requires a president, vice-president(s), secretary, and treasurer as officers unless bylaws provide otherwise
3. IRS, Annual Exempt Organization Return: Who Must File: which 990-series form applies depends on gross receipts and total assets
4. IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Form 990-N is due by the 15th day of the 5th month after the close of the organization's tax year
5. IRS, Form 990 Series Which Forms Do Exempt Organizations File: organizations use Form 990, 990-EZ, or 990-N to satisfy reporting requirements under section 6033
6. IRS, Automatic Revocation of Exemption: organizations that fail to file required returns for three consecutive years automatically lose their tax-exempt status