Last updated 2026-07-24
TL;DR
A treasurer tracks all money in and out, keeps clean records, reports to the board, and makes sure the group files whatever the IRS requires (often Form 990-N, due by the 15th day of the 5th month after the fiscal year ends). Miss three years of filings and the IRS auto-revokes tax-exempt status.
what does a treasurer do?
A treasurer is the person a nonprofit board or club puts in charge of the money. That means recording every deposit and every check, reconciling the bank account against the books every month, and giving the board a clear picture of what the group has, owes, and spends. It's a job with real legal weight attached, even at a 40-family youth soccer club. At the most basic level, a treasurer does four things on repeat: collects and deposits income (dues, concession sales, raffle tickets, sponsorships), pays and documents expenses, reconciles the bank statement to the books, and reports the numbers to the board and, when required, to the IRS and the state. Everything else, budgeting, fundraising compliance, audit prep, is a variation on those four. Most people who take this job didn't ask for it. They got handed a shoebox, a debit card, and a login nobody wrote down. If that's you, the job is more manageable than it looks once you break it into a monthly checklist instead of one huge blur of responsibility.
what is a treasurer, exactly?
A treasurer is an officer of an organization, usually elected or appointed by a board, responsible for the custody and management of its funds. In a nonprofit's bylaws, the treasurer role is almost always named specifically, alongside president and secretary, because state nonprofit law generally requires officers who handle finances to be identified. The treasurer isn't the owner of the money. The organization owns it. The treasurer is the steward, the one who has to be able to answer, at any moment, "how much do we have, where is it, and can we prove where it came from and where it went." In a small booster club this might be one person doing everything. In a larger PTO it might be a treasurer working alongside a bookkeeper or an assistant treasurer who handles concession stand cash counts. The title stays the same; the scope of duties scales with the size of the budget.
what do treasurers do day to day, month to month, year to year?
| Recording transactions & reconciling | 35% |
|---|---|
| Board reporting & budgeting | 20% |
| Fundraising compliance (raffles, cash handling) | 20% |
| Year-end filing (990-series, state registration) | 15% |
| Handoff prep & recordkeeping | 10% |
Day to day: deposit cash and checks promptly (many small nonprofits set a rule like within 48 to 72 hours), log every transaction, keep receipts attached to every expense, and never let cash sit in someone's car or backpack overnight if it can be avoided. Month to month: reconcile the bank statement against the books, prepare a simple treasurer's report for the board meeting (cash in, cash out, current balance, budget-to-actual if the group uses a budget), and flag anything unusual, a bounced check, a missing receipt, a sponsor payment that never showed up. Year to year: close out the fiscal year, prepare or hand off records for a review or audit, file the group's federal information return (Form 990, 990-EZ, or 990-N depending on gross receipts, see below), renew the state charitable registration if the state requires it, and hand over a clean set of books to the next treasurer. That last one matters more than most people realize. A huge share of the "our nonprofit lost its tax-exempt status and nobody noticed" stories start with a bad handoff, not a bad treasurer. Here's a rough breakdown of where treasurer time actually goes across a typical school year for a booster club or PTO: | Task category | Approx. share of treasurer time |
what does a treasurer do in a club or booster organization specifically?
In a club setting, the treasurer's job looks a lot like the nonprofit version but with more cash and fewer controls by default, which is exactly why problems happen. A club treasurer usually handles membership dues collection, concession stand or event cash, fundraiser proceeds (raffles, car washes, spirit wear sales), and reimbursements to coaches or volunteers for supplies. The practical risks are different from a big nonprofit's. A booster club treasurer is far more likely to deal with a shoebox of cash from a Friday night concession stand than with a wire transfer from a foundation grant. That means the controls that matter most are things like two-person cash counts, a deposit log, and a simple rule that nobody who counts the cash is the only one who deposits it. A club treasurer of a 501(c)(3) or 501(c)(4) affiliated booster group is also usually the one responsible for making sure the group actually files its federal return every year, since school districts and parent volunteers rotate constantly and the paperwork trail is thin. If the club has its own EIN (which it should, rather than using the school's or a coach's Social Security number), the treasurer is the one who has to track the filing deadline.
what does a club treasurer do that's different from a corporate treasurer?
A corporate treasurer manages cash flow, investments, debt, and banking relationships for a for-profit company, often with a finance team underneath them. A club or booster treasurer is almost always a volunteer doing this alone, part time, with a fraction of the tools and none of the training. The core duties, tracking money and reporting on it, are the same in spirit. The differences: a club treasurer usually can't hire an accountant, has to handle physical cash far more often (concession stands, raffle ticket sales, bake sales), and is personally on the hook socially and sometimes legally if the books are a mess when the school district, the state charity office, or the IRS come asking questions. The stakes are also different in a specific way. A corporate treasurer's mistake shows up in a quarterly earnings call. A club treasurer's mistake shows up as the group's IRS tax-exempt status getting automatically revoked because nobody filed a 990-N for three years running, something the IRS has done to hundreds of thousands of small organizations. According to the IRS, organizations that fail to file for three consecutive years automatically lose exempt status by operation of law [1].
what is Form 990 and why does the treasurer file it?
| Normally ≤ $50,000 | Form 990-N (e-Postcard) | |
|---|---|---|
| Normally < $200,000 and total assets < $500,000 | Form 990-EZ (or full 990) | |
| ≥ $200,000, or total assets ≥ $500,000 | Form 990 | |
| Private foundations (any size) | Form 990-PF | (Confirm current thresholds with the IRS, since they can shift; see Form 990 and 990 tax form for more detail.) The treasurer is usually the one who pulls together the numbers for this filing, even if a volunteer accountant or paid preparer actually completes the form. Getting this wrong, or not filing at all, is the single most common way small booster clubs and PTOs lose their tax-exempt status without meaning to. |
Form 990 is the annual information return that most tax-exempt organizations, including 501(c)(3) booster clubs and PTOs, are required to file with the IRS. It's not an income tax return in the traditional sense (exempt organizations generally don't owe income tax on mission-related revenue), it's a disclosure document: revenue, expenses, assets, and governance practices, all reported to the IRS and made public. The IRS describes the requirement plainly: "Most tax-exempt organizations are required to file an annual return." [2] Which version of the form a group files depends on gross receipts and assets: | Gross receipts (annual) | Which form applies |
what is the 990 tax form, in plain terms?
Think of it as an annual report card the IRS requires from tax-exempt organizations instead of an income tax bill. It shows how much money came in, from where, how much went out, what it was spent on, and whether the organization follows basic governance practices like having a written conflict-of-interest policy. The form is public information. Anyone, a parent, a donor, a reporter, a rival PTO, can look up a group's 990 filings through the IRS's Tax Exempt Organization Search tool or through nonprofit databases that republish them [3]. That transparency is by design; it's part of the deal an organization makes in exchange for tax-exempt status. For most small booster clubs and PTOs, the relevant version is Form 990-N, often called the e-Postcard, which the IRS describes as available to organizations "whose gross receipts are normally $50,000 or less" [4]. It only asks for basic information: EIN, tax year, legal name and address, confirmation the group's gross receipts are still under the threshold, and a statement that the organization hasn't terminated. See 990-N and Form 990-N for a walkthrough of exactly what fields it asks for.
what is the 990, and what happens if a treasurer doesn't file it?
"The 990" is shorthand people use for any version of the annual return, whether it's the full Form 990, the EZ version, the N postcard, or the PF for private foundations. When someone asks "do we need to file a 990," the honest answer is "yes, some version of it, almost certainly," unless the organization is a church or certain church-affiliated group, which are generally exempt from the filing requirement [2]. The consequence for not filing is blunt and automatic. The IRS states that an organization that does not file required returns or notices for three consecutive years will automatically lose its tax-exempt status, and this revocation happens by operation of law with no extra notice or appeal process before it takes effect [1]. The IRS publishes an Auto-Revocation List of organizations this has happened to, and it includes an enormous number of small local groups, PTOs, boosters, and youth sports leagues among them. Getting reinstated after auto-revocation generally means filing Form 1023 or 1023-EZ again and, depending on the situation, paying back taxes on income earned while not exempt. It's a real headache, and it's avoidable with one calendar reminder a year. This is the single highest-leverage thing a treasurer does: file on time, every year, no exceptions.
what does a treasurer do about fundraisers like raffles?
Raffles are one of the most common booster club and PTO fundraisers, and also one of the most commonly mishandled from a compliance standpoint. Most states regulate raffles as a form of gambling and require a license or registration before a nonprofit can legally run one, even a small 50/50 raffle at a football game. The treasurer (or whoever handles compliance, sometimes the treasurer wears both hats) needs to confirm with the state charity office or attorney general's office what's required before tickets go on sale: a license application, a filing fee, a bond in some states, recordkeeping on ticket sales and prize payouts, and sometimes a post-event report showing gross receipts and how proceeds were used. Rules vary enormously by state and even by county, so there's no substitute for checking directly with the relevant state gaming or charities regulator before the first ticket is printed. On the money side, raffle cash needs the same controls as any other fundraiser cash: two people counting, a written tally that both sign, a same-day or next-day deposit, and a receipt trail for prizes purchased or awarded. If the raffle involves cash prizes over certain thresholds, there can be separate IRS reporting obligations (Form W-2G in some cases), which is another reason to confirm specifics with a professional before launch rather than after the money's already changed hands.
what records does a treasurer have to keep, and for how long?
At minimum: bank statements, deposit slips, receipts for every expense, the board-approved budget, meeting minutes that reference financial decisions, the prior year's 990-series filing confirmation, and any state charitable registration paperwork. If the group runs a raffle or gaming event, add ticket sale logs, prize documentation, and any license or permit issued by the state. The IRS generally recommends keeping records that support items on a return until the statute of limitations for that return expires, and gives specific guidance for exempt organizations on recordkeeping [5]. A conservative, practical rule most small nonprofit treasurers use: keep everything for at least seven years, and keep certain permanent documents (articles of incorporation, IRS determination letter, EIN confirmation, bylaws) forever, in more than one place. This is also where a lot of handoffs fall apart. A treasurer who keeps everything in a personal email account or a home filing cabinet is one job change, one lost password, or one computer crash away from losing the organization's entire financial history. Cloud storage shared with the board, or a physical binder that lives with the organization rather than the person, solves most of this for free.
how does a treasurer hand off the job to the next person?
A clean handoff has a checklist, not a vibe. At minimum it should include: current bank balance and reconciliation, a list of all account logins and who's authorized as signers, the last three years of 990-series filings, the current state charitable registration status, an inventory of any outstanding checks or pending reimbursements, and the physical or digital location of every financial record. Banks generally require a board resolution or minutes to add or remove authorized signers on a nonprofit account, so this needs board action, more than a quiet swap of who has the debit card. It's worth building this into the bylaws or a standing policy: outgoing treasurer completes a handoff checklist, incoming treasurer signs off that they've received it, before the old treasurer's access gets removed. This is genuinely the moment when most booster clubs and PTOs either build good habits or lose institutional memory for good. A group that's building this process from scratch, or fixing one that's fallen apart after a bad handoff, can save a lot of trial and error using something built for exactly this job. BoosterLedger's $99 one-time State-Personalized Treasurer Kit bundles the state-specific raffle and charity registration guidance, a 990-series filing calendar, and a handoff checklist so the next treasurer isn't starting from a shoebox.
is a treasurer legally responsible if something goes wrong?
Treasurers can carry personal exposure, though the degree depends heavily on state nonprofit law, the organization's bylaws, and whether the group has directors and officers (D&O) insurance. Most state nonprofit corporation statutes offer some liability protection to volunteer officers acting in good faith, but that protection generally doesn't cover fraud, gross negligence, or knowingly ignoring legal requirements like filing deadlines. The realistic risk for most volunteer treasurers isn't criminal liability, it's the group losing its tax-exempt status, facing a state penalty for a lapsed charitable registration, or dealing with the fallout of a fellow volunteer's embezzlement that better controls could have caught earlier. Simple controls, two-signature checks over a set dollar threshold, monthly reconciliation reviewed by someone other than the treasurer, an annual independent review of the books, cut this risk dramatically for close to zero cost. None of this is legal advice, and treasurers dealing with a specific liability question, a lawsuit, or a suspected fraud situation should talk to an actual attorney or a CPA who works with nonprofits, not rely on a general guide.
Frequently asked questions
what does a treasurer do?
A treasurer tracks all the organization's money: recording income and expenses, reconciling the bank account, reporting to the board, and making sure required filings (like Form 990-N) go in on time. In a club setting, that also usually includes handling event cash, fundraiser proceeds, and reimbursements.
what is a treasurer?
A treasurer is the officer, usually elected by a board, responsible for an organization's funds: custody, recordkeeping, and reporting. Nonprofit bylaws typically name the treasurer role specifically because state law generally requires an identified officer to handle financial oversight.
what do treasurers do that other officers don't?
Unlike the president or secretary, the treasurer is the one accountable for the actual money: bank reconciliations, expense documentation, budget tracking, and tax filings. Other officers set direction and record decisions; the treasurer proves, with numbers, that the organization's actions matched its resources.
what does a treasurer do in a club?
In a club or booster group, the treasurer collects dues and fundraiser proceeds, pays approved expenses, reports the balance to the board regularly, and makes sure the club files its annual IRS return and any required state charitable registration. Cash handling from events like concessions is often the biggest daily task.
what does a club treasurer do differently from a corporate treasurer?
A club treasurer is almost always an unpaid volunteer handling physical cash regularly, with no finance team, while a corporate treasurer manages cash flow and banking for a paid staff and reports to executives. The core job, tracking and reporting money, is similar; the tools and stakes are very different.
what is Form 990?
Form 990 is the annual information return the IRS requires from most tax-exempt organizations, disclosing revenue, expenses, and governance details. It's a public document, not an income tax bill. Smaller organizations often file simplified versions like Form 990-EZ or Form 990-N instead of the full form.
what is a 990 tax form?
It's the IRS's annual reporting form for tax-exempt organizations, showing how much money came in, where it went, and whether the group follows basic governance practices. Despite the nickname, it generally isn't a tax bill for mission-related income; it's a disclosure and compliance document.
what is the 990-N and who has to file it?
Form 990-N, the e-Postcard, is the simplest annual filing option, available to tax-exempt organizations whose gross receipts are normally $50,000 or less per the IRS [4]. It only asks for basic identifying information and takes a few minutes online. Most small booster clubs and PTOs qualify for this version.
what happens if a treasurer never files the 990?
If required 990-series returns go unfiled for three consecutive years, the IRS automatically revokes the organization's tax-exempt status by operation of law, no warning letter guaranteed and no appeal beforehand. Reinstatement usually means reapplying for exempt status from scratch and possibly owing back taxes.
does a treasurer need a raffle license?
In most states, yes, running a raffle as a nonprofit fundraiser requires a license or registration from the state charity office, attorney general, or gaming commission before tickets go on sale. Requirements vary by state and sometimes by county, so confirm specifics directly with the state regulator before launching.
how long should a treasurer keep financial records?
A common practical rule is at least seven years for routine financial records like receipts and bank statements, and permanently for foundational documents like the IRS determination letter, EIN confirmation, and articles of incorporation. Store copies in more than one place, ideally shared with the board, more than one person's inbox.
is a volunteer treasurer personally liable for mistakes?
State nonprofit law often gives volunteer officers some liability protection for good-faith mistakes, but that protection generally doesn't cover fraud or knowingly ignoring legal requirements. Directors and officers insurance and basic controls (dual signatures, independent review) reduce real risk. This isn't legal advice; consult an attorney for specific liability questions.
what's the most important thing a new treasurer should do first?
Find out when the organization's fiscal year ends and confirm the 990-series filing deadline (generally the 15th day of the 5th month after year-end), then check whether the last few years were actually filed. Auto-revocation for missed filings is the single most common, and most avoidable, disaster in this job.
Sources
- IRS, "Automatic Revocation of Exemption for Not Filing Annual Return or Notice": organizations that fail to file required returns for three consecutive years automatically lose tax-exempt status by operation of law
- IRS, "Annual Exempt Organization Return: Who Must File": most tax-exempt organizations are required to file an annual return
- IRS, Tax Exempt Organization Search: 990 filings are public and searchable through the IRS's exempt organization search tool
- IRS, "Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N)": Form 990-N is available to organizations whose gross receipts are normally $50,000 or less
- IRS Publication 4221-PC, "Compliance Guide for 501(c)(3) Public Charities": IRS guidance on how long tax-exempt organizations should keep supporting financial records