Last updated 2026-07-25
TL;DR
A nonprofit board treasurer tracks income and expenses, keeps bank and reimbursement records straight, reports finances to the board, and makes sure the group files the right IRS Form 990 (990-N, 990-EZ, or 990) every year. Miss three years of filings and the IRS automatically revokes tax-exempt status under IRC Section 6033(j).
What does a treasurer do?
A treasurer is the board member (or sometimes a hired bookkeeper working under the board) responsible for a nonprofit's money: tracking it in and out, keeping records that hold up if someone asks questions, and reporting the numbers to the rest of the board on a regular schedule. That's the short version. The longer version is that the treasurer is usually the only person in a small nonprofit, PTO, or booster club who actually knows what's in the bank account at any given moment, which makes the role more load-bearing than the title suggests. Most state nonprofit statutes don't spell out treasurer duties line by line. They leave it to the bylaws. But the IRS does care, a lot, about whether the organization keeps books that support its tax-exempt filings, and the treasurer is almost always the person who ends up doing that work whether or not it's written into a job description. In practice the job breaks into four buckets: bookkeeping (recording transactions), banking (managing accounts, signers, and reconciliations), reporting (giving the board and members a clear financial picture), and compliance (filing the right IRS and state paperwork on time). Skip any one of those for long enough and you get either a board that's flying blind or an IRS letter nobody wants to open.
What is a treasurer, exactly, and who can be one?
A treasurer is a board officer, elected or appointed under the organization's bylaws, who holds legal and practical responsibility for the group's finances. The treasurer doesn't own the money. The organization does. The treasurer is a steward of it, accountable to the board and, in most tax-exempt groups, indirectly accountable to the public and the IRS because 501(c)(3) and 501(c)(4) status comes with disclosure obligations. Most bylaws don't require a treasurer to have accounting credentials. Plenty of great booster club treasurers are parents who are good with spreadsheets and stubborn about receipts, not CPAs. What matters more than credentials is whether the person actually does the reconciliations, actually keeps the paper trail, and actually shows up to explain the numbers instead of hand-waving with a rounded total. If your organization is incorporated as a nonprofit corporation, check your state's nonprofit corporation act for any default officer duties that apply when bylaws are silent. Some states, like California's Corporations Code, describe the chief financial officer role even when a group's own bylaws don't. Confirm the specific rule with your state's nonprofit statute or your state attorney general's charity office.
What do treasurers do day to day, month to month, and year to year?
| Weekly | Record deposits/expenses, file receipts | Treasurer |
|---|---|---|
| Monthly | Bank reconciliation, board financial report | Treasurer |
| Quarterly | Budget-to-actual review | Treasurer + Board |
| Annually | File Form 990-N/EZ/990, renew state registration | Treasurer (sometimes with a preparer) |
| Annually | Board review of treasurer's books | Board / audit committee |
| At handoff | Transfer records, bank signers, passwords | Outgoing + incoming treasurer |
Daily or weekly, a treasurer logs deposits and payments, keeps receipts attached to transactions, and watches for anything that looks off, like a reimbursement request with no backup or a check that never got cashed. This is the unglamorous grind of the job, and it's also the part that prevents the expensive problems later. Monthly, the treasurer reconciles the bank statement against the books, prepares a simple income-and-expense report for board meetings, and flags anything the board needs to decide on, like a vendor bill that's bigger than budgeted. Annually, the treasurer pulls the whole year together: total revenue, total expenses, and program vs. administrative spending if the group tracks that, then uses those numbers to file the right IRS Form 990 variant and any required state charitable-solicitation renewal. This is also when a lot of groups do an internal review, sometimes called a financial review or (for larger groups) an audit, comparing what the treasurer reported to source documents. Here's a simple table showing how the workload actually breaks down over a fiscal year: | Frequency | Task | Who typically does it |
What does a club treasurer do, specifically in a booster club or PTO?
A club treasurer, whether for a booster club, PTO, sports league, or scout troop, does everything a formal nonprofit treasurer does, just at a smaller scale and usually with more volunteer hours than professional help. The core job is the same: track dues and fundraising income, pay vendors and reimburse parents, keep a ledger, report to the group at meetings, and file whatever the IRS requires for the club's tax-exempt status. What's different for club treasurers is the mix of income sources. A youth sports booster club might run a concession stand, sell spirit wear, host a raffle, and collect membership dues, all in the same season. Each of those has its own record-keeping wrinkle: cash from concessions needs a two-person count and deposit log, raffle income may need a state gaming or charity license (confirm with your state charity office), and dues need a simple roster tying names to payments. Club treasurers also tend to inherit whatever mess the last treasurer left, sometimes literally a shoebox of receipts and a bank account nobody remembers the login for. If that's you right now, the fastest fix is a documented handoff: get bank signer forms updated, get the EIN and any IRS determination letter into a shared folder, and confirm the last few years of Form 990 filings actually went in. The IRS's Tax Exempt Organization Search tool lets you check filing history and revocation status for free [1].
What is Form 990, and why does the treasurer file it?
| Form 990-N (e-Postcard) | Gross receipts normally ≤ $50,000 | IRC §6033(i) | |
|---|---|---|---|
| Form 990-EZ | Gross receipts < $200,000 AND total assets < $500,000 | Per IRS Form 990-EZ instructions | |
| Form 990 (full) | Gross receipts ≥ $200,000 OR total assets ≥ $500,000 | Per IRS Form 990 instructions | |
| Form 990-PF | Private foundations, regardless of size | Required for all private foundations | The IRS states that organizations "whose gross receipts are normally $50,000 or less" may file the 990-N instead of a longer form [3]. The treasurer is the one who has to know, every year, which bucket the organization falls into, because the thresholds are based on actual receipts and assets, not on what was true two years ago. If you want the plain mechanics of the shortest version, see 990n and form-990-n. |
Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, and activities. It's not an income tax return in the usual sense, tax-exempt groups generally don't owe income tax on mission-related revenue, but the IRS still requires this filing to keep the public and the government informed about how exempt organizations spend money [2]. There isn't one single Form 990. There are three main versions depending on the organization's gross receipts and total assets, and picking the wrong one, or filing nothing, is one of the most common treasurer mistakes. | Filing | Who files it | Threshold |
What is a 990 tax form used for, and who actually reads it?
A 990 tax form is used by the IRS to confirm an organization is still operating within its tax-exempt purpose, and it's used by the public, donors, journalists, and watchdog groups to see how a nonprofit spends money. Most full Form 990 filings are public record, and services like the IRS's own Tax Exempt Organization Search publish them for anyone to pull up [1]. Donors sometimes check a group's 990 before writing a check, especially larger donors and grant-making foundations that want to see program spending versus overhead. Local newspapers occasionally pull 990s when writing about a nonprofit's finances. A state attorney general's charity office may also review 990 data as part of charitable-solicitation oversight. For a small booster club, this visibility rarely matters day to day. Nobody is scrutinizing a $30,000-a-year concession stand fund. But the discipline of filing accurately still matters, because the same numbers that go on the 990 are the numbers the treasurer should already be tracking for the board anyway. Good books make an easy 990. Bad books make a stressful one, or a missed one. For plain definitions of the form family, form-990, [990](https://boosterledger.com/articles/treasurer-basics/990), and 990-tax-form walk through each version.
What is the 990 deadline, and what happens if a treasurer misses it?
The 990, in any version, is due on the 15th day of the 5th month after the organization's accounting period ends. For a calendar-year organization (year ending December 31), that's May 15 [2]. If your fiscal year ends June 30, the return is due November 15. Miss one year, and nothing dramatic happens immediately, but the IRS starts tracking it. Miss three consecutive years, and the law is blunt: under IRC Section 6033(j), the organization's tax-exempt status is automatically revoked, with no separate IRS notice required beyond what's already been sent for the missed filings [4]. The IRS explicitly states that organizations "that fail to file for three consecutive years automatically lose their tax-exempt status" and that the revocation date is the filing due date of the third missed year, not the date the IRS notices [5]. Recovery is possible through retroactive reinstatement (Revenue Procedure 2014-11 outlines the streamlined process for small organizations that qualified for 990-N or 990-EZ), but it takes paperwork, a filing fee, and time, and until it's approved, the organization is not tax-exempt, which can mean donor contributions aren't deductible and some grants become unavailable [6]. This is the single most common crisis a new treasurer inherits: discovering, on day one of the job, that the previous treasurer let the filings lapse.
Does a treasurer need to know accounting, or can any board member do it?
No formal accounting background is required by IRS rules or most state nonprofit statutes, but the job goes much smoother with someone comfortable with basic bookkeeping: recording transactions, reconciling a bank statement, and reading a simple income statement. Plenty of treasurers learn this on the job. What actually predicts success in the role isn't a degree, it's consistency. A treasurer who reconciles the bank account every month and keeps receipts filed by date will run circles around a CPA who only checks in once a year. The IRS doesn't ask who holds the job title. It asks whether the organization's return is accurate and timely. That said, for larger organizations (say, gross receipts consistently above $500,000, or any group receiving significant grant funding with reporting requirements), it's worth having a paid bookkeeper or accountant support the volunteer treasurer, or at minimum having an outside preparer check the 990 before it's filed. Cost for a basic 990-EZ prep from a small firm often runs a few hundred dollars; a full 990 with schedules costs more depending on complexity. Get quotes locally, prices vary a lot by region and organization complexity.
What financial controls should a treasurer set up from day one?
A treasurer walking into a new role should set up a short list of controls before doing anything fancier: two signers on the bank account (never one person able to move money alone), a written reimbursement policy that requires a receipt and a short description, a monthly reconciliation habit, and a simple ledger, even a spreadsheet, that separates income by source (dues, concessions, raffle, donations) and expense by category. Cash handling deserves its own attention because it's where most small-nonprofit financial problems start, not from fraud usually, but from sloppy counting. Concession stand and raffle cash should always be counted by two people, with both signing a count sheet before deposit. Nobody should be depositing cash they counted alone, and nobody should be reimbursing themselves without a second signature. For state raffle or gaming income specifically, check your state's charitable gaming or attorney general's office for licensing rules before running the event, not after. Requirements and thresholds vary widely by state, so confirm specifics with your state charity office rather than assuming last year's rules still apply. If you're building these controls from scratch and want a starting structure rather than reinventing one, a state-personalized Treasurer Kit ($99 one-time) gives new treasurers a ready-made set of templates, ledgers, and filing checklists tuned to their state's specific raffle and charity-registration rules, instead of assembling all of it by hand.
What should a treasurer report to the board, and how often?
At minimum, a treasurer should give the board a written financial report at every regular board meeting: current bank balance, income and expenses since the last report, and anything unusual (a bounced check, a large unexpected expense, a fundraiser that came in way under or over budget). Boards can't govern a budget they never see. Annually, that report expands into a full-year summary that feeds directly into the Form 990 filing: total revenue by source, total expenses by category, and a comparison to the prior year's budget if one exists. Some boards also want a short narrative, in plain language, explaining any big swings. A good habit borrowed from larger nonprofits: put the treasurer's report on the agenda every single meeting, even if it's just two sentences: "we have $4,200 in the account, spending is on track." That habit alone catches problems early, because someone besides the treasurer is looking at the numbers on a schedule instead of once a year in a panic before the 990 is due.
What happens during a treasurer handoff, and how do you avoid losing everything?
A treasurer handoff is the single riskiest moment in a small nonprofit's financial life, because it's when institutional knowledge either transfers cleanly or disappears. The outgoing treasurer should hand over the bank account access (with signer changes filed at the bank, more than a promise to "add you later"), the full ledger or accounting file, the EIN and IRS determination letter, copies of the last three years of Form 990 filings, and any state charity registration numbers and renewal dates. The incoming treasurer's first move should be checking the IRS Tax Exempt Organization Search tool to confirm the organization's exempt status is actually current, not assumed [1]. It's a five-minute check that has saved more than a few incoming treasurers from inheriting a silently revoked nonprofit. A written handoff checklist, done every single year regardless of whether the treasurer is changing, turns this from a crisis into a formality. That's worth setting up even if this year's treasurer isn't leaving, because someday they will, often with little warning.
Frequently asked questions
What does a treasurer do?
A treasurer tracks an organization's income and expenses, manages the bank account with proper controls, reports finances to the board regularly, and makes sure the right IRS Form 990 and any state charity filings get submitted on time. It's a mix of bookkeeping, banking, reporting, and compliance.
What is a treasurer?
A treasurer is a board officer responsible for an organization's finances: recording transactions, managing bank accounts, and reporting to the board. In nonprofits, the treasurer usually also handles or coordinates IRS Form 990 filing and any state charitable registration renewals.
What do treasurers do that other board members don't?
Other board members set direction and vote on policy; the treasurer is the one who actually touches the money: recording it, reconciling it, and reporting it. The treasurer also typically owns the annual IRS Form 990 filing, which no other officer role usually handles.
What is Form 990?
Form 990 is the annual information return most tax-exempt organizations file with the IRS reporting income, expenses, and activities. It comes in several versions (990-N, 990-EZ, full 990, 990-PF) depending on gross receipts and total assets, per IRS instructions.
What does a treasurer do in a club, like a booster club or PTO?
A club treasurer records dues, fundraiser income, and expenses; manages the club bank account; reports to members at meetings; and files the club's IRS Form 990 (often the 990-N for small clubs) and any required state raffle or charity registration.
What does a club treasurer do differently from a corporate nonprofit treasurer?
The core duties are the same, but club treasurers usually handle more cash (concessions, raffles, dues) with less staff support, and often inherit informal or incomplete records from prior volunteer treasurers, making a clean handoff process especially important.
What is a 990 tax form used for?
It's used by the IRS to verify an exempt organization is operating within its tax-exempt purpose, and by the public, donors, and state charity regulators to review how the organization spends money. Most full 990 filings are public record via the IRS's Tax Exempt Organization Search.
What is the 990, and does every nonprofit have to file one?
The 990 is the IRS's annual reporting form for tax-exempt organizations. Nearly all 501(c)(3) and similar groups must file some version every year, even the smallest ones, which file the simplified 990-N; only certain church-related entities have different rules, confirm specifics with the IRS.
What is a 990 tax form deadline?
The 990 (any version) is due the 15th day of the 5th month after the organization's fiscal year ends. For calendar-year organizations, that's May 15. A 6-month extension is available using Form 8868, per IRS instructions.
What happens if a treasurer doesn't file the 990 for several years?
Under IRC Section 6033(j), missing three consecutive years of required 990 filings triggers automatic revocation of tax-exempt status, effective on the filing deadline of the third missed year. Reinstatement requires a separate application and fee to the IRS.
Does a nonprofit treasurer need to be a CPA?
No. Most bylaws and state nonprofit statutes don't require accounting credentials for the treasurer role. What matters more is consistency: monthly reconciliations, organized receipts, and timely reporting. Larger organizations often pair a volunteer treasurer with a paid bookkeeper or preparer.
What records should an outgoing treasurer hand over?
Bank account access with updated signers, the full ledger or accounting file, the EIN and IRS determination letter, the last three years of Form 990 filings, and any state charity registration numbers with renewal dates. Confirm exempt status is current using the IRS's Tax Exempt Organization Search before taking over.
Can a treasurer be personally liable for a nonprofit's financial mistakes?
Liability depends on state law and whether the treasurer acted with reasonable care, but board members including treasurers can face personal exposure for gross negligence or breach of fiduciary duty in some states. Confirm specifics with your state's nonprofit corporation statute or legal counsel; this isn't legal advice.
Sources
- IRS, Tax Exempt Organization Search: Free tool to check an organization's exempt status and filing history, including revocation status
- IRS, Annual Exempt Organization Return: Due Date: Form 990 is due the 15th day of the 5th month after the fiscal year ends
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Organizations with gross receipts normally $50,000 or less may file Form 990-N
- 26 U.S.C. § 6033(j): Automatic revocation of tax-exempt status after three consecutive years of failing to file required returns
- IRS, Automatic Revocation of Exemption: Organizations that fail to file for three consecutive years automatically lose their tax-exempt status, effective on the original filing due date
- IRS, Revenue Procedure 2014-11: Streamlined retroactive reinstatement process for small organizations after automatic revocation
- IRS, Form 990-EZ Instructions: Gross receipts and total asset thresholds for eligibility to file Form 990-EZ
- IRS, Form 990 Instructions: Gross receipts and total asset thresholds requiring the full Form 990 instead of 990-EZ or 990-N
- California Corporations Code Section 5231: State nonprofit corporation statutes may describe officer financial duties even when bylaws are silent