Nonprofit treasurer responsibilities: the full job explained

Last updated 2026-07-25

What does a treasurer do?

A treasurer is the person legally and practically responsible for an organization's money. That means tracking every dollar that comes in (dues, ticket sales, concession stand cash, sponsorships, raffle proceeds) and every dollar that goes out (uniforms, venue rentals, insurance, awards), then being able to explain the difference at any point in time. In a volunteer-run booster club or PTO, the treasurer usually does five things on a repeating cycle: record transactions, reconcile the bank account, report to the board, file required tax and state paperwork, and keep enough documentation that an outsider (an auditor, a new treasurer, an IRS agent) could reconstruct what happened without asking you anything. That last part is the one first-time treasurers underestimate most. Nobody hands you a manual when you take the binder from last year's parent. You inherit a checkbook, maybe a shared spreadsheet, and a vague sense that "the numbers were fine last year." The job is making sure that's still true in twelve months, and provable. The IRS itself frames this simply: exempt organizations "must keep books and records to show that they comply with tax rules" and must be able to document income, expenses, and activities ^[1]. The treasurer is the person who makes that documentation exist.

What is a treasurer, exactly, in a volunteer organization?

A treasurer is an elected or appointed officer, usually named in the bylaws, who holds financial signing authority and reporting duty for the group. Unlike a paid bookkeeper, a volunteer treasurer typically also carries board-level fiduciary responsibility, meaning you owe the organization a duty of care and loyalty over its money, more than data entry. Most state nonprofit corporation statutes require at least the officer roles the bylaws call for, and many small booster clubs and PTOs are incorporated as nonprofit corporations under state law separately from their federal tax-exempt status. The treasurer role in the bylaws is a state-law creature; the 990 filing obligation is a federal IRS creature. New treasurers often confuse the two and think one filing covers both. It doesn't. In practice, for a group with an annual budget under roughly $250,000, the treasurer is often the entire finance department: bookkeeper, controller, and internal auditor rolled into one unpaid volunteer. That's a lot for one parent with a day job, which is exactly why documentation and simple controls matter more here than in a staffed nonprofit with a finance committee.

What do treasurers do day to day, month to month, and year to year?

Weekly	Deposit cash/checks, log transactions	Prevents loss, theft exposure, and memory gaps
Monthly	Bank reconciliation, board report	Catches errors early, keeps board informed
Quarterly	Budget-vs-actual check	Flags overspending before it's a crisis
Annually	File 990/990-N, renew registrations	Avoids IRS auto-revocation [3] and state penalties
At handoff	Full document transfer, EIN letter, bylaws, prior 990s	Keeps the next treasurer from starting blind

The job breaks into three time horizons, and new treasurers do better when they think in all three instead of only reacting to whatever's on fire. Daily/weekly: deposit cash and checks promptly (don't let a shoebox of concession stand cash sit in someone's car for two weeks), log every transaction with a date, amount, and purpose, and keep receipts for anything reimbursed. Monthly: reconcile the checkbook or accounting software against the actual bank statement, report a simple income/expense summary to the board, and flag anything unusual (a bounced check, a missing deposit, a vendor invoice that doesn't match a PO). Annually: file the correct IRS Form 990 variant by the deadline (the 15th day of the 5th month after your fiscal year ends ^[2]), renew any state charitable solicitation registration if your state requires it, renew raffle or gaming licenses if you run raffles, and prepare a year-end financial summary for the annual meeting and for whoever takes over next. | Frequency | Task | Why it matters |

What is Form 990?

Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, activities, and governance. The IRS describes it as the return that "provides the public with financial information about a nonprofit organization" and is often the only source of this information for a given group ^[4]. There isn't just one 990. There's a family of forms scaled to organization size, and picking the wrong one (or filing none at all) is one of the most common treasurer mistakes. For 2024 filings (returns for tax years beginning in 2023 and later, thresholds are periodically updated so confirm current figures with the IRS), the general breakdown is: - Form 990-N (e-Postcard): organizations with gross receipts normally $50,000 or less ^[5]

• Form 990-EZ: gross receipts under $200,000 and total assets under $500,000 ^[6]
• Form 990: gross receipts $200,000 or more, or total assets $500,000 or more ^[6]
• Form 990-PF: required for private foundations regardless of size Even organizations that don't owe any tax still have to file something. As the IRS puts it, most tax-exempt organizations "must file an annual information return" and the specific form depends on the organization's financial activity ^[2]. See our breakdowns of Form 990, the 990 tax form family generally, and Form 990-N specifically if you're a smaller group.

What is a 990 tax form used for, beyond just filing?

Beyond satisfying the IRS, the 990 is public. Anyone can look up a nonprofit's filed 990s through the IRS Tax Exempt Organization Search tool or through third-party databases that mirror IRS data . Donors, grant funders, and sometimes parents at your school use it to check how a booster club or PTO spends money. That means the 990 (or 990-N e-Postcard, or 990-EZ) is functionally your organization's financial reputation document. A sloppy or late 990 doesn't just risk IRS penalties, it's the first thing a skeptical parent or a grant committee might pull up. The ^[990](/articles/treasurer-basics/990) and 990 tax form filings also ask governance questions: does the board review the return before filing, does the organization have a conflict-of-interest policy, are related-party transactions disclosed. Answering "no" to everything isn't illegal by itself, but it's a signal, and some grant funders do screen on it.

What happens if a treasurer misses a 990 filing, and what is IRS auto-revocation?

If an organization fails to file the required 990 series form for three consecutive years, the IRS automatically revokes its tax-exempt status. This isn't a warning-then-maybe process; it's automatic by statute. The IRS states plainly: "the law requires automatic revocation of tax-exempt status of any organization that fails to file a required annual return or notice for three consecutive years" ^[3]. Once revoked, the organization is treated as a taxable entity going forward and donations made after the revocation date are generally no longer tax-deductible to the donor ^[3]. For a booster club that depends on sponsor checks and parent donations, that's a real, immediate fundraising problem, more than paperwork. Recovery is possible through Streamlined Retroactive Reinstatement (for organizations eligible to file 990-N or 990-EZ, generally those that have not previously had their exemption revoked) or standard retroactive reinstatement using Form 1024 or 1024-A with a reasonable-cause statement . There's a filing fee involved (confirm the current amount on the IRS user fee schedule) and it takes real time, often months. None of this is guaranteed to succeed; it depends on your specific facts, so confirm your eligibility and process with the IRS and, if the stakes are high, a qualified tax professional. The fastest way to never deal with this: set a recurring calendar reminder for your 990 deadline (15th day of the 5th month after fiscal year end ^[2]) the day you take the treasurer job, not the month it's due.

What does a treasurer do in a club or booster organization specifically?

A club or booster treasurer does everything a larger nonprofit treasurer does, just without staff to delegate to. Concretely, in a school booster club or youth sports league, the job usually includes: - Collecting and depositing dues, concession revenue, spirit-wear sales, and sponsorship checks

• Paying invoices for uniforms, officials, tournament fees, insurance, and facility rentals
• Maintaining a simple ledger or accounting software file that any board member could review
• Presenting a budget-vs-actual report at board meetings, usually monthly or per season
• Filing the 990-series return annually
• Applying for or renewing a raffle license with the state if the club runs raffles, since most states regulate charitable gaming separately from tax-exempt status (confirm requirements with your state's gaming commission or attorney general's office)
• Keeping the checkbook, deposit slips, receipts, and bank statements organized enough to survive a leadership change The club treasurer's biggest structural risk is concentration: one person often holds the login to the bank account, the accounting software, the state registration, and the IRS online account. If that person disappears (moves, gets busy, has a family emergency), the club can lose access to its own money. Building in a second authorized signer and sharing key passwords with the board president is cheap insurance against that.

What does a treasurer of a club do that a regular board member doesn't?

A regular board member votes on how money should be spent. The treasurer is the one accountable for whether the money was actually spent that way, and for proving it later. Specifically, only the treasurer (or whoever holds that authority under the bylaws) typically has: signing authority on the bank account, the ability to file tax and state paperwork on the organization's behalf, and the direct line of sight into every transaction. A board member sees a summary; the treasurer sees the receipts behind the summary. This distinction matters for liability, too. In most states, officers with financial control (like a treasurer) can be held to a higher standard of care regarding fraud, mismanagement, or missed filings than a general board member who reasonably relied on the treasurer's reports. That's not a reason to panic, it's a reason to keep things simple, written down, and reviewed by at least one other person.

How should a treasurer handle cash and basic financial controls?

Cash is where volunteer organizations get hurt most, not from grand embezzlement schemes but from sloppy handling that makes it impossible to know if money went missing at all. A few non-negotiable habits: Always have two people count cash together (concession stand proceeds, raffle ticket sales, gate receipts) and both sign a count sheet before the cash leaves the table. Never let one volunteer take a cash box home alone. Require two signatures, or at minimum a second reviewer, for checks or transfers above a set dollar threshold your board picks (many small clubs use $250 or $500 as the line). Keep the bank account requiring two authorized signers if your bank allows it, and update signers immediately when officers change. Reconcile the bank statement every month against your ledger, more than at tax time. A reconciliation done in April for transactions from the prior August is nearly useless for catching problems while they're still fixable. Use a receipt or reimbursement form for every out-of-pocket expense, even small ones. "I spent $40 on poster board, here's the receipt" takes thirty seconds and prevents disputes later. None of this requires expensive software. A shared spreadsheet with clear columns (date, description, amount, category, who approved it) plus disciplined monthly reconciliation covers most small booster clubs and PTOs. Software helps once you're handling six figures or multiple bank accounts, but it's not the first problem to solve.

What records does a treasurer need to hand off to the next treasurer?

A clean handoff is the single best gift one treasurer can give the next. At minimum, the outgoing treasurer should transfer: - The organization's EIN confirmation letter and IRS determination letter (the original tax-exempt status approval)

• Copies of the last three to five years of filed 990s or 990-N confirmations
• Current bylaws and any board-approved financial policies
• Bank account statements for at least the past year, and login access or a process to update signers
• The full ledger or accounting file, not a summary, going back at least one full fiscal year
• Any state charitable registration or raffle license numbers and renewal dates
• A written list of recurring obligations (insurance renewal dates, vendor contracts, membership dues schedules) A lot of groups skip this because officers change every year or two and everyone's a volunteer with limited time. That's exactly why it needs to be written down rather than passed along verbally over coffee. This is the gap a State-Personalized Treasurer Kit is built to close: a one-time $99 package that assembles the state-specific registration steps, 990 deadline tracking, and handoff checklist so a new treasurer isn't reconstructing five years of history from memory and a shoebox of receipts.

Does a treasurer need to worry about state charitable registration and raffle licensing too?

Yes, and this is separate from anything the IRS handles. Most states require nonprofits that solicit donations from the public to register with a state charity office, often the attorney general's office or secretary of state, before fundraising, and to renew annually. Requirements, thresholds, and exemptions vary significantly by state, so confirm your specific obligation with your state charity office. Separately, if your club runs raffles, 50/50s, or similar games, most states regulate these as a form of charitable gaming requiring its own license, distinct from your federal tax exemption and distinct from charitable solicitation registration. Rules on ticket sales, prize limits, and reporting proceeds also vary by state, so confirm current requirements with your state's gaming or charitable gaming office before selling a single ticket. The pattern to remember: federal tax exemption (IRS), state nonprofit corporate status (secretary of state), state charitable solicitation registration (attorney general or charity office), and state raffle/gaming licensing (gaming commission or similar) are four separate systems. A treasurer can be perfectly compliant with the IRS and still be violating state raffle law, or vice versa.

Frequently asked questions

What does a treasurer do?

A treasurer tracks all money coming into and out of an organization, reconciles the bank account monthly, reports to the board, files required tax returns like the 990 series, and keeps records organized enough for an outsider or successor to understand the finances without help.

What is a treasurer?

A treasurer is an officer, usually named in an organization's bylaws, responsible for its money: collecting funds, paying bills, keeping books, and reporting financial status to the board and, for nonprofits, to the IRS and sometimes a state charity office.

What do treasurers do differently from other board members?

Treasurers hold financial signing authority and direct access to bank accounts, receipts, and filings that other board members typically don't. Other board members vote on spending; the treasurer executes it, tracks it, and is accountable for proving it happened as approved.

What is Form 990?

Form 990 is the annual information return most tax-exempt organizations must file with the IRS, reporting income, expenses, and activities. The IRS says it "provides the public with financial information about a nonprofit organization" and is often the public's main source of that data ^[4].

What does a treasurer do in a club?

In a club or booster organization, the treasurer collects dues and event revenue, pays vendor and league invoices, keeps a ledger, reports to the board, files the appropriate 990-series form annually, and handles state raffle licensing or charitable registration if the club runs those activities.

What does a club treasurer do that requires special care?

A club treasurer handles cash from concession stands, gate receipts, and raffles, which is the area most prone to loss or disputes. Best practice is two people counting and signing off on all cash, a two-signature threshold on payments, and monthly bank reconciliation.

What is a 990 tax form used for besides filing with the IRS?

Beyond IRS compliance, the 990 is a public document. Donors, grant committees, and parents can look it up through the IRS Tax Exempt Organization Search tool ^[7], making it a de facto public reputation record for how the organization spends its money.

What is the 990, and does every nonprofit file the same one?

No. The 990 is a family of forms scaled by size: Form 990-N for gross receipts normally $50,000 or less, Form 990-EZ for receipts under $200,000 and assets under $500,000, and the full Form 990 for larger organizations ^[5][6]. Private foundations file Form 990-PF regardless of size.

What happens if a nonprofit treasurer never files a 990?

Missing three consecutive years of required 990-series filings triggers automatic revocation of tax-exempt status under IRS rules ^[1]. After revocation, the organization is treated as taxable and donations are generally no longer tax-deductible until status is reinstated, which requires a separate application process.

Can a nonprofit get its tax-exempt status back after auto-revocation?

Often yes, through Streamlined Retroactive Reinstatement for smaller filers or standard reinstatement using Form 1024 or 1024-A with a reasonable-cause statement ^[8]. There's a fee and no guaranteed outcome; eligibility depends on your specific filing history, so confirm your options with the IRS or a qualified tax professional.

Does a booster club treasurer need to register with the state separately from the IRS?

Often yes. Many states require charitable organizations that solicit public donations to register with a state charity office or attorney general, separate from federal tax-exempt status, and this needs annual renewal in many states. Confirm the specific requirement and threshold with your state charity office.

Does running a raffle require a separate license from the treasurer's other filings?

Usually yes. Most states regulate raffles and similar games of chance under separate charitable gaming laws, requiring their own license distinct from IRS tax exemption and from charitable solicitation registration. Rules on prize limits and reporting vary by state, so confirm with your state's gaming office before selling tickets.

What records should a new treasurer ask for when taking over?

Ask for the EIN letter, IRS determination letter, the last three to five years of filed 990s, current bylaws, a full ledger going back at least a year, bank statements, signer access, and any state registration or raffle license numbers with renewal dates.

Sources

1. IRS, Automatic Revocation of Exemption: Failing to file required 990-series returns for three consecutive years triggers automatic revocation of tax-exempt status
2. IRS, Recordkeeping for Tax-Exempt Organizations: Exempt organizations must keep books and records to show compliance with tax rules
3. IRS, Annual Exempt Organization Return: Due Date: 990-series returns are due the 15th day of the 5th month after the organization's fiscal year end
4. IRS, Form 990 Resources and Tools: Form 990 provides the public with financial information about a nonprofit organization
5. IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Form 990-N applies to organizations with gross receipts normally $50,000 or less
6. IRS, Tax Exempt Organization Search: The public can look up a nonprofit's filed 990s through the IRS Tax Exempt Organization Search tool