What does a treasurer do? the full role, explained

Last updated 2026-07-24

What is a treasurer, and what does a treasurer do?

A treasurer is the person a club, PTO, or booster group trusts to track every dollar that comes in and goes out, and to tell the board the truth about the group's financial position on a regular schedule. That's the job in one sentence. Everything else is detail. In practice, "what does a treasurer do" breaks into five buckets: recording transactions (deposits, checks, reimbursements), reconciling the bank statement every month, reporting to the board (a simple income/expense summary at each meeting), keeping receipts and records organized enough that a stranger could reconstruct the year, and filing the group's annual return with the IRS. Small booster clubs skip that last one constantly, and it's the single most common reason groups end up back on square one legally. A treasurer is not required to be a CPA. Most volunteer treasurers have never filed a nonprofit return before they take the job. That's normal. The role is closer to a careful bookkeeper with a fiduciary duty than an accountant with a license. If your group's finances get complicated (payroll, large grants, audited financials required by a school district), that's when you bring in a paid accountant or CPA to supplement, not replace, the volunteer treasurer. One thing worth saying plainly: the treasurer isn't just a record-keeper. Under most state nonprofit statutes, officers (including treasurers) have a fiduciary duty of care to the organization, meaning they're expected to act with the care an ordinarily prudent person would use in a similar position ^[1]. That's a legal standard, more than a job description, and it's why sloppy books aren't just embarrassing, they're a liability issue.

What do treasurers do day to day, week to week, month to month?

Day to day, a treasurer opens mail (or checks a shared inbox) for checks and invoices, deposits cash and checks promptly, and logs each transaction with a date, amount, payer/payee, and purpose. Most small groups can do this in a spreadsheet or a basic tool like QuickBooks Nonprofit or Wave; you don't need software built for a hospital system. Weekly, a treasurer should reconcile any cash boxes (concession stand money, raffle ticket sales) against a count sheet signed by two people, not one. This single habit, two people counting and signing off on cash, prevents the majority of "where did the money go" disputes that blow up booster clubs. Monthly, the treasurer reconciles the bank statement against the internal ledger and reports to the board: total income, total expenses, cash on hand, and anything unusual. This report doesn't need to be fancy. A one-page summary with beginning balance, income by category, expenses by category, and ending balance is enough for a group with a $20,000 to $80,000 annual budget, which describes most booster clubs and PTOs. Annually, the treasurer (often with the board president) closes the books for the fiscal year, prepares for the group's tax filing, and if the bylaws call for it, helps arrange an internal review or external audit. Annual is also when state charitable registration renewals and raffle license renewals tend to come due, so a shared calendar with dates matters more than people expect.

What is Form 990, and does a small club actually have to file it?

$50,000 or less	Form 990-N (e-Postcard) [3]
Less than $200,000, and total assets under $500,000	Form 990-EZ (or full 990) [4]
$200,000 or more, or assets $500,000+	Form 990 (full version) [4]	Source: IRS.gov, Form 990-N and 990 filing thresholds page [3] [4]. Many people ask "what is a 990 tax form" expecting something like an individual 1040. It isn't. There's no tax owed by simply filing a 990; it's informational. But skipping it has real teeth: an organization that fails to file for three consecutive years has its tax-exempt status automatically revoked by law, under Internal Revenue Code Section 6033(j) [1]. That's not a warning letter situation, it's automatic. If your group hasn't filed in a while, read up on form 990 filing thresholds and what triggers revocation before you assume you're fine because nobody's called.

Form 990 is the annual information return that tax-exempt organizations file with the IRS to report income, expenses, and activities. It's not a payment form in most cases (nonprofits generally don't owe income tax on mission-related income), it's a disclosure form that keeps the IRS and the public informed about how a tax-exempt group operates ^[2]. Most booster clubs, PTOs, and youth sports groups are 501(c)(3) organizations, and nearly every 501(c)(3) has to file something every year, even if the group made almost no money. The version depends on gross receipts: | Annual gross receipts | Which form to file |

What is the 990-N, and how is it different from the full 990?

The 990-N, sometimes called the e-Postcard, is the simplest version, built for organizations with $50,000 or less in annual gross receipts ^[3]. It's filed entirely online through the IRS's Form 990-N electronic filing system, takes about ten minutes once you have the right information, and asks for basics: your EIN, tax year, legal name and address, confirmation you're still under the $50,000 threshold, and the name of a principal officer. There's no financial detail required on the 990-N itself, no balance sheet, no listing of expenses. That's the tradeoff for being small: less paperwork, but you still must file every year without exception, or the automatic revocation clock keeps running. Compare that to the full 990 or 990-EZ, which ask for a real accounting: revenue by source, expenses by category, compensation of officers, a balance sheet, and often a breakdown of program activities. If your booster club crosses $50,000 in gross receipts even for one year (a big fundraiser, an unusually generous sponsor), you may need to step up to the 990-EZ or full 990 for that year, then step back down if receipts drop again. Check the current thresholds directly on 990n guidance or IRS.gov before assuming your group still qualifies for the e-Postcard, because the dollar cutoffs are the kind of detail that's easy to file the same way you did last year without re-checking.

What happens if a booster club never filed a 990 at all?

This is more common than most new treasurers expect. Groups get formed informally, someone gets an EIN, nobody ever files anything, and five years later a new treasurer inherits a mess with no filing history at all. First step: confirm your status. The IRS maintains a searchable list of organizations that had their tax-exempt status automatically revoked for not filing for three consecutive years ^[5]. If your group's EIN shows up there, your 501(c)(3) status is gone, even if nobody ever told you directly, and even if you thought your group was covered under a school district or a national booster association's umbrella exemption (worth double-checking, because sometimes it genuinely is). Second step: reinstatement. The IRS has a formal process for this, described in Revenue Procedure 2014-11, which lays out streamlined retroactive reinstatement for small organizations that file Form 1023 or 1023-EZ within a certain window and pay the required user fee ^[6]. Depending on your group's size and history, you may qualify for the streamlined path (generally organizations eligible to file 990-N or 990-EZ) or need the full retroactive reinstatement process. Third step: back-file. Even after reinstatement, you'll likely need to file the returns you missed. This is genuinely tedious if records are thin, which is why cash-handling controls and monthly reconciliations matter even in years nothing seems urgent: they're what makes catch-up filing possible instead of a guessing exercise. If you're mid-recovery right now, our 990 tax form and irs form 990 guides walk through the reinstatement paperwork step by step.

What does a treasurer do in a club (as opposed to a formal nonprofit)?

Not every group with a treasurer is a registered 501(c)(3). A lot of informal clubs, small hobby groups, and some school-affiliated clubs never file for tax-exempt status at all; they just run a checking account and call the person who manages it "treasurer." For these groups, "what does a treasurer of a club do" is a scaled-down version of the nonprofit role: track dues, track expenses, keep a simple ledger, report to members at meetings, and make sure nobody's writing checks without a second person knowing. The stakes are lower on IRS paperwork (if you're not a registered exempt organization, there's often no 990 to file, though check with the IRS if you're unsure of your group's status), but the stakes on trust and cash-handling are exactly the same. Money disappearing from an informal club's account causes just as much damage to relationships as money disappearing from a formal nonprofit's account. If your "club" collects more than a token amount of dues or runs fundraisers (car washes, bake sales, raffle tickets), it's worth asking whether you should formalize into a 501(c)(3) or at least a state nonprofit corporation. That decision affects liability protection for the treasurer personally, more than tax treatment.

What records does a treasurer need to keep, and for how long?

At minimum: bank statements, deposit slips, receipts for every expense over a small threshold your board sets (many groups use $25 or $50), board meeting minutes showing financial approvals, the annual budget, and copies of every tax filing (990-N confirmation emails, 990-EZ or 990 copies, any state filings). The IRS's own guidance for exempt organizations recommends keeping records that support items on your return until the statute of limitations for that return expires, which is generally three years from filing, but longer if you underreported income or never filed at all ^[7]. In practice, most nonprofit treasurers keep seven years of full records as a safe buffer, because state charity regulators and grant funders sometimes ask for more history than the IRS technically requires. Don't keep everything on one person's laptop. A shared drive, with the board president or another officer having access, protects the group if the treasurer moves, gets sick, or simply disappears mid-season. This sounds obvious until it happens to a real booster club and three years of records vanish with a graduating senior's parent.

How does a treasurer handle cash from concessions, raffles, and fundraisers?

Cash is where most booster club financial problems start, not because treasurers are dishonest, but because cash-handling without controls creates situations where good people get blamed for bad counting, or where the one bad actor in a thousand finds an easy opening. Basic controls that cost nothing but discipline: always have two people count concession or raffle cash together and both sign a count sheet before it's deposited; deposit cash within a few business days, never let it sit in someone's car or kitchen drawer for weeks; require two signatures on checks above a threshold the board sets (many groups use $500); and never let the person who counts cash also be the only person who reconciles the bank statement. If your group runs raffles, most states require a separate charitable gaming or raffle license before you sell a single ticket, and the rules (who can sell, where proceeds must go, how winners are reported) vary a lot by state. Confirm with your state's charity regulator or attorney general's office before your next raffle, because operating without the required license can create real legal exposure for the officers, more than the organization.

How does a treasurer report to the board, and what should that report include?

A good treasurer's report at a board meeting has four numbers anyone can understand in thirty seconds: cash on hand at the start of the period, total income, total expenses, and cash on hand now. Everything else is supporting detail. Beyond the four numbers, include a comparison to budget (are you tracking to what was planned for the season), a list of any unusual transactions (a big sponsor payment, an unexpected repair bill), and upcoming known expenses (tournament fees, uniform orders) so the board isn't surprised later. Boards should ask for this report every meeting, more than at year-end. A treasurer who only reports annually is much harder to catch if something's gone sideways, and it's genuinely unfair to that treasurer too, because problems compound quietly over months when nobody's looking at the numbers together.

How do you hand off the treasurer role to someone new?

Handoffs are where a lot of institutional knowledge quietly dies. The outgoing treasurer should hand over bank account access and signer changes (this usually requires a board vote and a visit to the bank), the full ledger or accounting file, all passwords for online banking and any accounting software, copies of the last three years of tax filings, and a written summary of any open issues (a check that hasn't cleared, a filing that's overdue, a grant with reporting requirements still pending). A short walkthrough meeting, even 30 minutes, between outgoing and incoming treasurer saves the incoming treasurer weeks of guessing. If your group doesn't have a habit of doing this, start now, even mid-year, because waiting until the annual meeting to figure out who has the checkbook is how groups lose track of filings for years at a stretch. This is exactly the kind of gap a State-Personalized Treasurer Kit is built to close: a $99 one-time kit with your state's specific raffle and charity registration rules, IRS filing checklists, and handoff templates, so a new treasurer isn't starting from a blank page or a shoebox of receipts.

What's the difference between a treasurer's legal duty and just being organized?

Being organized is necessary but it isn't the whole job. As an officer of a nonprofit, a treasurer generally owes the organization a duty of care and a duty of loyalty under state nonprofit corporation law, meaning decisions have to be made in good faith and in the organization's best interest, more than accurately recorded ^[1]. This matters practically in a few ways: a treasurer who notices funds being misused has an obligation to raise it with the board, more than record it and stay quiet. A treasurer who lets filings lapse for three years risks the automatic revocation described above, and while the IRS penalty falls on the organization's exempt status, boards and parents understandably hold the treasurer accountable too, fairly or not. None of this is legal advice, and nonprofit law varies by state, so if your group is dealing with a real dispute, a comingling problem, or a suspected theft, talk to a lawyer or your state's charity regulator rather than trying to resolve it purely with better spreadsheets.

Frequently asked questions

What does a treasurer do?

A treasurer tracks all money coming in and going out, reconciles the bank account monthly, reports finances to the board regularly, keeps organized records, and files the group's required annual tax return with the IRS (often Form 990-N for small groups). It's a bookkeeping and reporting role with a real legal duty attached, more than a title.

What is a treasurer?

A treasurer is the officer of a club, PTO, or nonprofit responsible for managing and reporting the organization's finances. Under most state nonprofit laws, treasurers hold a fiduciary duty of care to the organization, meaning they must act with the same care a reasonably prudent person would use in that 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 activities. It's not a tax bill; it's a disclosure document. Depending on gross receipts, groups file the full Form 990, the shorter 990-EZ, or the 990-N e-Postcard for receipts under $50,000 (IRS.gov).

What is a 990 tax form?

It's the informational return nonprofits file annually with the IRS, not an income tax form in the traditional sense. Most 501(c)(3) groups owe no tax on it since mission-related income is generally exempt, but filing is still mandatory every year, and missing it for three straight years triggers automatic revocation of tax-exempt status under IRC Section 6033(j).

What is the 990-N?

The 990-N, or e-Postcard, is the simplest IRS annual filing, for organizations with $50,000 or less in annual gross receipts. It's filed online in about ten minutes and asks for basic identifying information only, no financial detail. It still must be filed every single year without exception.

What does a treasurer do in a club?

In an informal club that isn't a registered nonprofit, a treasurer tracks dues, expenses, and account balances, and reports to members regularly. The IRS filing obligations may not apply if the group isn't a registered exempt organization, but cash-handling controls (two-person counts, receipts, two signers) matter just as much as in a formal nonprofit.

What does a club treasurer do differently from a nonprofit treasurer?

The core job (tracking money, reporting, keeping records) is the same. The difference is regulatory: a registered 501(c)(3) treasurer must file an annual IRS return and possibly state charity registration renewals, while an informal club treasurer usually just answers to the membership and the group's own bylaws.

How do I know if my booster club lost its tax-exempt status?

Search your organization's name or EIN in the IRS Tax Exempt Organization Search / Auto-Revocation List on IRS.gov. If it appears there, your 501(c)(3) status was automatically revoked, generally for failing to file required returns for three consecutive years, even if no one at the organization was ever notified directly.

Do small booster clubs really have to file taxes every year?

Yes. Nearly every 501(c)(3), no matter how small, must file something annually, even if it's just the Form 990-N e-Postcard for groups under $50,000 in gross receipts. There's no exemption for being small or all-volunteer; the filing requirement is about size of receipts, not amount of activity.

What happens if a nonprofit misses three years of 990 filings?

Its tax-exempt status is automatically revoked by operation of law under Internal Revenue Code Section 6033(j), with no separate IRS notice required before revocation takes effect. Reinstatement requires filing Form 1023 or 1023-EZ again, sometimes through a streamlined retroactive process under Revenue Procedure 2014-11, plus paying the applicable user fee.

How much cash should a treasurer let sit before depositing it?

Best practice is depositing within a few business days of collection, not letting concession or raffle cash sit for weeks. Longer than that increases both the risk of loss or theft and the difficulty of matching cash to specific events when you reconcile later. Two people should count and sign off before any deposit.

Does a treasurer need to be a CPA or accountant?

No. Most volunteer treasurers for booster clubs, PTOs, and youth sports groups have no formal accounting background, and the role doesn't require one. It requires consistency: recording transactions promptly, reconciling monthly, and following two-signer cash controls. Groups with complex finances (payroll, audits, large grants) often bring in a paid accountant to supplement the volunteer treasurer.

Who should have access to the bank account besides the treasurer?

At least one other officer, typically the board president or vice president, should have signing authority and online access, so the group isn't locked out if the treasurer is unavailable. Most banks require a board vote and a signature card update whenever officers change, so build that into every annual handoff.

Sources

1. Various state nonprofit corporation statutes (fiduciary duty of care standard): Officers of nonprofits generally owe a fiduciary duty of care requiring the care an ordinarily prudent person would exercise in a similar position
2. IRS, Annual Exempt Organization Return: Who Must File: Most tax-exempt organizations must file an annual information return (Form 990 series) reporting income, expenses, and activities
3. 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 (e-Postcard) instead of a full return
4. IRS, Form 990 Series Which Forms Do Exempt Organizations File: Filing thresholds for Form 990-EZ vs full Form 990 based on gross receipts and total assets
5. IRS, Tax Exempt Organization Search: IRS maintains a searchable database including organizations whose tax-exempt status was automatically revoked
6. IRS, Revenue Procedure 2014-11: Streamlined retroactive reinstatement process exists for small organizations that lost exempt status and file Form 1023 or 1023-EZ within the required window
7. IRS, How long should I keep records?: Records supporting a tax return should generally be kept until the statute of limitations for that return expires, typically three years, longer in certain cases