Last updated 2026-07-24
TL;DR
A treasurer manages a group's money: bank accounts, budgets, receipts, and reports. Form 990 is the annual information return tax-exempt organizations file with the IRS. Small groups under $50,000 in gross receipts usually file the e-Postcard, Form 990-N. Miss three straight years and the IRS automatically revokes tax-exempt status [1].
What does a treasurer do?
A treasurer is the person who keeps track of an organization's money and makes sure it goes where it's supposed to go. That's the whole job in one sentence, but the daily reality is longer. In a booster club, PTO, or youth sports league, the treasurer usually handles the bank account, writes or approves checks, collects dues and fundraiser cash, keeps receipts, reconciles the bank statement every month, and reports the balance to the board. Most small nonprofits also expect the treasurer to either file the annual IRS return or make sure someone does. None of this requires an accounting degree. It requires consistency. The treasurers who get in trouble aren't the ones who make mistakes, they're the ones who stop tracking things for a few months and then can't reconstruct what happened. A shoebox of receipts from August is fine. A shoebox of receipts from three years ago is a problem. If you just inherited this role from someone who quit, retired, or moved away, start by finding the bank statements, the EIN, and last year's tax filing (if one exists). Those three things tell you almost everything about where the organization actually stands.
What is a treasurer, exactly?
A treasurer is an officer of an organization, usually elected or appointed by the board, who is legally and practically responsible for its finances. In a volunteer group like a PTO or booster club, this is almost always an unpaid volunteer position, not a job title borrowed from a corporation. The treasurer isn't the only person with financial duties. The board as a whole is responsible for oversight, and many bylaws require a second signature on large checks or a finance committee to review the books. But the treasurer is the point person. If a parent asks 'how much money do we have and where did it go,' the treasurer should be able to answer within a day, not a month. Some groups split the role: a treasurer who handles day-to-day bookkeeping and a separate financial secretary who counts fundraiser cash. Smaller groups combine everything into one person. Either way, the bylaws should say who has check-signing authority and who approves spending over a certain dollar amount.
What do treasurers do day to day, month to month, and year to year?
Day to day: deposit checks and cash promptly (within a few days, not weeks), keep receipts for anything purchased with organization funds, and don't let cash sit in a car trunk or a kitchen drawer. Month to month: reconcile the bank statement against your own ledger, report a balance and a brief summary of income/expenses at each board meeting, and flag anything unusual (a bounced check, a missing deposit, a vendor invoice that doesn't match what was ordered). Year to year: prepare or review the annual budget, help with the transition if a new treasurer takes over, and file the organization's annual return with the IRS. For most small booster clubs and PTOs, that means Form 990-N, the electronic notice for organizations with gross receipts normally $50,000 or less [1]. Larger organizations file the full Form 990 or 990-EZ depending on revenue and assets [2]. Many states also require an annual charitable registration renewal separate from the IRS filing. Confirm with your state charity office whether your group needs to register or renew, since this trips up more small nonprofits than the federal filing does.
What is Form 990?
| 990-N (e-Postcard) | Smallest orgs | Gross receipts normally $50,000 or less [1] | |
|---|---|---|---|
| 990-EZ | Small/mid orgs | Gross receipts under $200,000 and total assets under $500,000 [2] | |
| 990 (full form) | Larger orgs | Gross receipts $200,000+ or assets $500,000+ [2] | |
| 990-PF | Private foundations | Regardless of size | Most booster clubs, PTOs, and small youth sports leagues land in the 990-N category. If a big fundraising year pushes you over $50,000 in gross receipts, you may need to step up to the 990-EZ for that year. Check the current thresholds directly on irs.gov, since the IRS updates guidance periodically. |
Form 990 is the annual information return the IRS requires from most tax-exempt organizations. The IRS describes it plainly: "Tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations file this form to provide the IRS with the information required by section 6033" [3]. It's not a bill. There's usually no tax owed. It's a disclosure document that reports income, expenses, assets, and governance to the IRS and, because most 990s are public record, to anyone else who looks it up. There isn't one single 990 form. There's a family of them, scaled to organization size: | Form | Who files it | Rough threshold |
What is a 990 tax form used for?
It's used for public transparency and IRS oversight of tax-exempt organizations, not for calculating taxes owed. Because most tax-exempt groups don't pay federal income tax on money used for their exempt purpose, the government still wants visibility into how the money moves. Form 990 is that visibility mechanism. Donors, grantmakers, and watchdog sites like GuideStar/Candid pull data straight from 990 filings, so an organization's 990 (or its lack of one) becomes part of its public reputation. A booster club that hasn't filed in five years looks disorganized to a parent considering a large donation, even if nothing improper happened, it just looks like nobody's driving. The 990-N is the exception to the 'detailed disclosure' description. It's genuinely just eight data points: legal name, EIN, tax year, mailing address, website (if any), confirmation that gross receipts are normally $50,000 or less, name and address of a principal officer, and confirmation the organization hasn't terminated [1]. It takes most treasurers under 10 minutes once they have the EIN and a login for the IRS's e-Postcard filing system.
What happens if a small nonprofit doesn't file the 990?
The IRS automatically revokes tax-exempt status if an organization fails to file for three consecutive years. This is written into the tax code: "the exempt status of such organization... shall be revoked" under Internal Revenue Code section 6033(j) after three consecutive years of non-filing [4]. There's no warning letter that says 'this is your final notice,' though the IRS does send reminders to the last address on file, which is exactly why address updates matter. Once revoked, the organization is treated as a taxable entity going forward and donations are no longer tax-deductible until status is reinstated. Many small booster clubs and PTOs don't discover the revocation until a bank asks for exempt status proof, or until they check the IRS's Tax Exempt Organization Search and find themselves on the auto-revocation list. Reinstatement is possible. The IRS created streamlined retroactive reinstatement for organizations that were eligible to file 990-N or 990-EZ and apply within 15 months of revocation, using Form 1023 or 1023-EZ and paying the applicable user fee [5]. Miss the 15-month window and the process gets more expensive and more paperwork-heavy. Our form-990 explainer walks through filing mechanics in more detail if you're catching up on missed years.
What does a club treasurer do that's different from a corporate treasurer?
A club treasurer, whether for a booster club, PTO, or rec league, wears more hats than the term suggests. There's no finance department behind them, no dedicated bookkeeper, and often no software beyond a spreadsheet or a personal checking habit carried over from home budgeting. Specific club-treasurer tasks that don't come up in a corporate finance role: counting concession stand cash after a Friday night game with a witness present, tracking which families paid registration fees and which are still owed, reconciling raffle ticket sales against ticket stubs for state raffle license reporting, and explaining to a room of volunteer parents, in plain language, why the equipment fund is $400 short. The stakes are also personal in a way corporate finance isn't. A missing $200 in a Fortune 500 company is a rounding error. A missing $200 in a 40-family booster club is a trust crisis that can end friendships and force a treasurer resignation. Cash handling controls (two people counting, deposit slips, a locked box, no cash kept at home) matter more in small nonprofits precisely because the informal trust culture makes shortcuts tempting and disputes personal.
What does a treasurer of a club do when there's no accountant to ask?
Most club treasurers have no professional backup, so the honest answer is: they learn the basics, keep things simple, and know when to hand off to an accountant. That's not a failure, it's the normal shape of the job. Things you don't need an accountant for: monthly bank reconciliation, a basic income/expense ledger (a spreadsheet is fine), filing the 990-N e-Postcard, and preparing a simple annual budget for board approval. Things worth paying an accountant or bookkeeper for, even briefly: if gross receipts push you into 990-EZ or full 990 territory, if you're not sure whether your organization is still tax-exempt, if you're setting up payroll for a paid coach or coordinator, or if you're reconstructing several years of missing records after a treasurer handoff went badly. A one-time consult with a local CPA who works with nonprofits often costs less than the anxiety of guessing. This isn't tax or legal advice, and specifics vary by state and by your organization's exempt category, so confirm details with the IRS and your state charity office before making filing decisions.
How do you know which 990 to file?
Check your organization's average gross receipts over the most recent three years, then match to the IRS thresholds. Gross receipts, not net income, is the number that matters, so a $60,000 fundraiser with $55,000 in expenses still counts as $60,000 in gross receipts for this test. The IRS explains 990-N eligibility this way: organizations "whose gross receipts are normally $50,000 or less" file the e-Postcard [1]. 'Normally' is a defined term using a rolling average, not a single-year snapshot, so one unusually big year doesn't automatically bump you up if your three-year average stays under the line. The IRS instructions for Form 990 and 990-EZ spell out the exact averaging method [2]. If you're right at the edge, some treasurers choose to file the more detailed 990-EZ voluntarily even when 990-N would technically work, because it creates a fuller public record and can look better to donors and school district partners reviewing your finances. That's a judgment call, not a requirement.
What's the difference between the treasurer's job and the IRS filing itself?
The treasurer's job is ongoing money management; the 990 filing is one annual output of that job, not the whole thing. It's easy to conflate the two because the filing deadline (the 15th day of the 5th month after the organization's accounting period ends, per IRS instructions [2]) creates a yearly crunch that feels like the whole job. For an organization on a calendar fiscal year, that's May 15. For a school-year fiscal year running July through June, that's November 15. Missing this date once isn't catastrophic, an organization gets three strikes before auto-revocation [4], but a treasurer who tracks the deadline on a calendar avoids a lot of stress. The rest of the job (reconciliations, budgets, cash controls, board reporting) happens continuously and is arguably more important day to day than the filing itself, because sloppy year-round bookkeeping is what makes the annual filing painful in the first place.
How do treasurers avoid getting the organization in trouble?
Three habits cover most of it: reconcile monthly, keep receipts for everything, and file on time every year without exception. Organizations that follow this rarely end up on the IRS auto-revocation list or facing an awkward parent meeting about missing raffle money. A few more specific habits worth building in: require two signatures on checks above a set dollar threshold (many bylaws set this at $250 to $500), never let one person both collect and deposit cash without a second person present at the count, keep the EIN and prior filings in a shared folder (more than on one person's laptop), and update the organization's address with the IRS whenever officers change so filing reminders reach a live inbox instead of a former treasurer's old email. A state-specific reference built for volunteer treasurers, like the State-Personalized Treasurer Kit, can shortcut a lot of this by giving you your state's specific deadlines, raffle license rules, and a filing checklist instead of piecing it together from scratch. It's a $99 one-time tool, not a subscription, and it doesn't replace an accountant for anything complicated, just makes the routine stuff faster.
What should a new treasurer do in the first 30 days?
Get the EIN, find last year's 990 filing (or confirm one was never needed), check the IRS Tax Exempt Organization Search to confirm current exempt status, and get added as a signer on the bank account. After that: pull the last 12 months of bank statements and reconcile them yourself, even if the outgoing treasurer says everything's fine. This isn't about distrust, it's about you needing to understand the numbers before you're the one answering for them. Ask for any raffle license paperwork if the group runs raffles, since state raffle rules vary widely and often require their own annual reporting separate from the IRS. Finally, calendar the 990 deadline (5th month, 15th day after fiscal year end) and any state charity registration renewal date. Missing these because nobody wrote them down is the single most common way small nonprofits end up scrambling.
Frequently asked questions
What does a treasurer do?
A treasurer manages an organization's money: bank accounts, budgets, receipts, monthly reconciliations, board reporting, and usually the annual IRS filing (Form 990-N, 990-EZ, or 990 depending on size). In a volunteer group it's an elected or appointed officer role, not a paid job, and it requires consistency more than accounting expertise.
What is a treasurer?
A treasurer is the officer of a club, PTO, booster group, or nonprofit responsible for its finances: tracking money in and out, keeping records, and reporting to the board. Bylaws typically define check-signing authority and spending approval limits for the role.
What is Form 990?
Form 990 is the annual information return most tax-exempt organizations file with the IRS to report income, expenses, and governance. It's a public disclosure document, not a tax bill; most organizations owe no tax with it. The IRS scales the form by size: 990-N, 990-EZ, or full 990 [3].
What is the 990-N e-Postcard?
Form 990-N is the electronic notice for tax-exempt organizations with gross receipts normally $50,000 or less. It requires eight basic data points (EIN, name, address, principal officer, confirmation of receipts under the threshold) and is filed online through the IRS, usually taking under 10 minutes [1].
What happens if we miss filing the 990 for a few years?
Miss three consecutive years and the IRS automatically revokes tax-exempt status under Internal Revenue Code section 6033(j) [4]. There's no single warning letter; many groups find out when a bank or donor asks for proof of exempt status. Streamlined reinstatement is available within 15 months of revocation.
Does a small booster club really need to file a 990?
Yes, if it's recognized as tax-exempt by the IRS, it needs to file something annually, usually the 990-N if gross receipts stay normally under $50,000. Groups that never applied for exempt status have a different, more complicated situation and should confirm status directly with the IRS.
What's the difference between 990-N, 990-EZ, and the full 990?
990-N is for organizations with gross receipts normally $50,000 or less. 990-EZ is for those under $200,000 in gross receipts and under $500,000 in total assets. The full Form 990 applies above those thresholds [2]. Larger receipts or assets mean more detailed disclosure required.
What does a treasurer do in a club versus a corporation?
A club treasurer handles the same core duties (tracking money, reporting to the board) but usually without a finance department, bookkeeper, or software budget. Club treasurers also handle things corporate treasurers don't, like counting concession cash, tracking fundraiser proceeds, and reconciling raffle ticket sales for state licensing.
When is the 990 deadline?
The 15th day of the 5th month after your organization's accounting period ends. For a calendar-year organization, that's May 15. For a July-to-June fiscal year, common for school-affiliated groups, that's November 15 [2].
Can a treasurer file the 990 without an accountant?
Yes, for most small booster clubs and PTOs. The 990-N e-Postcard is simple enough for a volunteer to file directly on irs.gov. Larger organizations filing the full 990 or 990-EZ, or anyone unsure about exempt status, may want at least a one-time consult with a nonprofit-experienced accountant.
What records does a treasurer need to keep?
Bank statements, deposit records, receipts for all expenses, board meeting financial reports, prior 990 filings, the EIN confirmation letter, and any state charity registration paperwork. Keep at least three years of records accessible, since that's the window before IRS auto-revocation kicks in for non-filing.
What happens if tax-exempt status gets revoked?
The organization is treated as taxable going forward, donations stop being tax-deductible until status is restored, and the group appears on the IRS's revocation list. Reinstatement is possible through Form 1023 or 1023-EZ, with a streamlined retroactive option if applied for within 15 months of revocation [5].
Sources
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): 990-N eligibility for organizations with gross receipts normally $50,000 or less and the eight data points required
- IRS, Instructions for Form 990 and Form 990-EZ: 990-EZ and full 990 thresholds by gross receipts and total assets, plus the filing deadline formula
- IRS, About Form 990, Return of Organization Exempt from Income Tax: Form 990's purpose as an information return required under section 6033
- 26 U.S.C. section 6033(j), Internal Revenue Code: Automatic revocation of tax-exempt status after three consecutive years of non-filing
- IRS, Revenue Procedure 2014-11: 15-month streamlined retroactive reinstatement process using Form 1023 or 1023-EZ
- IRS, Automatic Revocation of Exemption: How organizations discover revocation and the process the IRS uses to list revoked organizations