Last updated 2026-07-25
TL;DR
A nonprofit treasurer manages the money: bank accounts, bookkeeping, budget reports to the board, and tax filings like the Form 990-series. In a small club or booster group, it's usually one volunteer doing bookkeeping, reporting, and making sure the group's IRS filing (often the 990-N) gets done every year.
What does a treasurer do?
A nonprofit treasurer is the officer responsible for the organization's money: tracking it, reporting on it, and making sure it's handled honestly and legally. That's the whole job in one sentence. Everything else is detail. In practice the role splits into four buckets. First, bookkeeping: recording deposits, expenses, and reimbursements as they happen, not in a shoebox in April. Second, banking: opening and monitoring accounts, setting who can sign checks, watching for weird activity. Third, reporting: giving the board a clear picture of cash on hand, upcoming bills, and how actual spending compares to budget. Fourth, compliance: filing the annual tax return with the IRS (the Form 990-series), keeping state charity registration current, and following any raffle or gaming license rules if the group runs games of chance. Some state nonprofit statutes actually spell this out. Model nonprofit corporation language typically assigns the treasurer responsibility for corporate funds and securities, and for keeping full and accurate accounts. California's Corporations Code, for instance, gives the treasurer (called the chief financial officer in the statute) responsibility for financial books and records and for filing required reports [1]. Your own state's nonprofit corporation act will have similar language; check it, because it's the closest thing to a legal job description you'll get. For a volunteer taking over mid-year, the honest short version is: you're the person who can answer 'how much money do we have and where did it go' at any moment, with numbers that match the bank statement.
What is a treasurer, exactly?
A treasurer is an elected or appointed officer of an organization who is legally and practically accountable for its finances. The title exists in corporations, government bodies, and clubs, but the nonprofit version usually means something narrower and more personal: one volunteer, a shared bank login, and a shoebox (or spreadsheet) of receipts. Most nonprofit bylaws name the treasurer as one of a small set of required officers, often alongside president, vice president, and secretary. The bylaws typically say the treasurer has custody of funds, keeps financial records, and reports to the board at regular meetings. Some bylaws are vague on purpose ('treasurer shall perform duties as assigned') which sounds flexible but actually just means you inherit whatever the last person did, good or bad. A treasurer is not automatically a bookkeeper, accountant, or tax preparer, even though in a small group they end up doing all three jobs. It's worth saying plainly: this article and the tools behind it are not accounting or legal advice, and nothing here guarantees any filing outcome or tax-exempt status. For anything that touches real tax exposure or legal risk, confirm with the IRS and your state charity office, or a licensed CPA or attorney. One useful distinction: 'treasurer' is a role, not a bank account type. The org's money belongs to the org, never to the treasurer personally, and every transaction should be traceable back to a receipt, invoice, or board-approved expense.
What do treasurers do day to day, month to month, year to year?
| Weekly | Deposit funds, log transactions, file receipts | |
|---|---|---|
| Monthly | Reconcile bank statement, report to board | |
| Quarterly | Compare budget to actual spending, adjust if needed | |
| Annually | File Form 990-series return, renew state charity registration if required, prep for handoff or audit | The single biggest failure mode isn't fraud, it's neglect: nobody files the 990-N for three straight years because the last treasurer moved and nobody realized filing was even required. |
Daily or weekly: deposit checks and cash promptly (ideally within a few days, with two people present for cash counts), log every transaction, and file receipts as they come in rather than at year-end. Monthly: reconcile the bank statement against your books line by line, prepare a short financial report for the board meeting (cash balance, recent income and expenses, budget-to-actual), and flag anything unusual before it becomes a bigger problem. Annually: build or update the budget with the board, close the books for the fiscal year, prepare for any outside review or audit, and file the group's IRS return. For most small booster clubs and PTOs, that annual filing is the Form 990-N e-Postcard, due by the 15th day of the 5th month after the fiscal year ends [2]. Miss three years in a row and the IRS automatically revokes the group's tax-exempt status, no warning letter required beyond what's already been published [3]. Here's a simple task table for a typical school year: | Frequency | Task |
What does a treasurer do in a club or booster group specifically?
A club treasurer does a smaller, more hands-on version of the corporate job: collect dues or fundraising cash, pay for uniforms, travel, or equipment, keep a simple ledger, and report balances at meetings. There's rarely a paid bookkeeper backing this up, so the treasurer is the entire finance department. Booster clubs and PTOs have a specific extra wrinkle most corporate treasurers don't: many run raffles, concession stands, or 50/50 drawings, and most states require a charitable gaming or raffle license before you sell a single ticket. Rules vary by state (some cap prize values, some require a percentage of proceeds go to the charitable purpose, some exempt small one-time raffles). Confirm the specific threshold and license requirement with your state's charity office or attorney general's charitable gaming division before running any raffle. Because booster and PTO treasurers turn over constantly (often every one to three years as kids graduate or families move on), the club treasurer role has an unusually high risk of dropped paperwork: missed 990-N filings, expired state registrations, lost bank access when a bank requires updated board resolutions. A 990-N filing takes a few minutes online through the IRS's e-Postcard system once you have the group's EIN and basic financials handy [2], but only if someone remembers to do it. If your organization takes in more money, the filing gets more involved. Groups with gross receipts normally at or below $50,000 file the 990-N; above that, generally the 990-EZ or full Form 990 applies depending on receipts and assets, per IRS instructions for the 990 series [4].
What is Form 990?
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 a bill; nonprofits generally don't owe income tax on mission-related revenue, but the IRS still wants an annual accounting of how the money moved, and the public can see most of it. There are several versions depending on size. The 990-N (e-Postcard) is for organizations with gross receipts normally $50,000 or less [2]. The 990-EZ is a shorter paper/electronic form for mid-size organizations. The full Form 990 is required for larger organizations and asks for far more detail: executive compensation, program service accomplishments, governance policies. Private foundations file a different version, the 990-PF, regardless of size [4]. The IRS states plainly that most tax-exempt organizations, other than churches and church-related entities, must file an annual information return, and that 'organizations that fail to file for three consecutive years will automatically lose their tax-exempt status' [3]. That single sentence is the reason this whole topic matters to a volunteer treasurer: skipping the 990 tax form filing isn't a paperwork inconvenience, it's the thing that kills your tax exemption. Form 990 filings are also public record. Anyone, including donors, journalists, and competing grant applicants, can look up a nonprofit's recent 990s through the IRS's Tax Exempt Organization Search tool [5].
What is a 990 tax form used for, and who has to file it?
| Gross receipts normally ≤ $50,000 | 990-N (e-Postcard) | |
|---|---|---|
| Gross receipts < $200,000 and total assets < $500,000 | 990-EZ (or full 990) | |
| Gross receipts ≥ $200,000 or total assets ≥ $500,000 | Full 990 | |
| Private foundations (any size) | 990-PF | Churches and most church-affiliated organizations are generally exempt from the annual filing requirement, but almost everyone else, including tiny booster clubs with a $3,000 checking account, needs to file something every year [3]. A common myth among new treasurers is that a small group under the $50,000 threshold doesn't have to file anything. Not true. It just files the shortest version, the 990-N e-Postcard, instead of the longer forms. The filing deadline is the 15th day of the 5th month after your fiscal year ends. For a calendar-year organization (fiscal year ending December 31), that's May 15 [2]. |
The 990 tax form is used by the IRS to confirm that a tax-exempt organization is still operating within its exempt purpose, and it's used by the public to see how the group spends money. Filing requirements depend almost entirely on gross receipts and total assets, not on how the organization is organized. Here's the general breakdown per current IRS guidance [4], though thresholds can shift, so double-check the current year's instructions: | Organization size | Typical form |
What happens if a treasurer misses a 990 filing?
Nothing happens after one missed year, which is exactly why it's dangerous. The IRS doesn't send a scary letter after year one. But after three consecutive years of missed filings, the organization's tax-exempt status is automatically revoked, effective on the filing due date of the third year [3]. Auto-revocation is quiet. You typically find out when a bank suddenly asks for proof of exempt status to open an account, a grantor asks for a determination letter you can't produce, or someone checks the IRS's Tax Exempt Organization Search and finds the group listed as revoked [5]. Donations made after revocation may not be tax-deductible to the donor, which is a real problem for a booster club that depends on parent and business donations. Recovery is possible but takes real paperwork: filing Form 1024 or 1024-A to apply for reinstatement, along with any delinquent 990s, and in some cases requesting retroactive reinstatement if you can show reasonable cause for the lapse. The IRS lays out the streamlined and standard reinstatement procedures, including the reasonable-cause requirement, in Revenue Procedure 2014-11 [6]. This is squarely the kind of task where getting help from a CPA familiar with exempt organizations, or at minimum working directly from current IRS instructions, beats guessing. The cheapest fix is prevention: put the filing deadline on a calendar with a reminder six weeks out, and write down exactly which form your group files and why, so the next treasurer doesn't have to reverse-engineer it.
What does a club treasurer do differently from a corporate nonprofit treasurer?
A club or booster treasurer usually handles smaller dollar amounts but faces more turnover, more cash handling, and fewer built-in controls than a staffed nonprofit's finance office. That combination is exactly why small groups have a disproportionate share of both innocent bookkeeping messes and the rare embezzlement case. A staffed nonprofit typically has an executive director, a bookkeeper or accountant, and a board finance committee reviewing the treasurer's work. A volunteer booster club treasurer often has none of that: one person collects cash at the concession stand, deposits it, records it, and reports on it, with no second set of eyes unless the bylaws require one. Basic controls that scale down fine to a volunteer group: require two signatures on checks over a set dollar threshold (many small nonprofits use something like $500, though there's no single legal standard, so set what makes sense for your budget), have someone other than the treasurer open the bank statement or reconcile it, and always have two people count cash from any fundraiser or concession stand together before it leaves the building. When a new treasurer takes over a club, the state's model nonprofit act generally still applies even to small unincorporated or lightly-formed booster groups if they're organized as a corporation; check your state's specific requirements. Confirm with your state's charity registration office or attorney general's office whether your group needs to register as a charitable organization before soliciting donations, separate from the IRS tax-exempt question.
How does a new treasurer take over the books cleanly?
A clean handoff means getting five things from the outgoing treasurer before you sign anything: the EIN, the last three years of filed 990s (or confirmation none were required), current bank statements and online access, a list of open bills and pledges, and the current budget versus actual spending. Start with a physical or digital binder check. Do you have the group's EIN? Without it you can't file anything or open a bank account in the org's name. Do you know which 990 version the group files, and when the last one was submitted? You can verify this yourself using the IRS Tax Exempt Organization Search, which shows filed 990s and current exempt status [5]. If the group shows up as revoked, that's priority one, before you worry about anything else. Next, reconcile the bank account against whatever ledger exists, even if it's a shared spreadsheet with gaps. If the numbers don't match and nobody can explain why, that gap is now your problem to document, even if you didn't cause it. Write down the discrepancy and the date you found it; that paper trail protects you later. Finally, update signers on the bank account. Banks generally require a new board resolution and often want to see the officer list from the meeting minutes where you were elected. This step gets missed constantly and it's why some booster clubs end up locked out of their own account for weeks. For a step-by-step packet built around this exact handoff (state-specific forms, a 990 filing checklist, and a raffle license reference by state), BoosterLedger's $99 one-time State-Personalized Treasurer Kit is built for this. It's a reference tool, not tax or legal advice, and it doesn't guarantee any filing outcome.
What financial reports should a treasurer give the board?
At minimum, a treasurer should give the board a current cash balance, a summary of income and expenses since the last meeting, and a budget-to-actual comparison, at every regular board meeting. That's the floor, not the ceiling. A simple monthly report covers: starting balance, total deposits, total expenses (ideally with a one-line description each), ending balance, and a note on anything unusual (a bounced check, an unexpected bill, a grant that came in early). Boards don't need a CPA-grade balance sheet from a volunteer treasurer of a $15,000 booster club; they need enough detail to catch problems and make decisions. At year-end, add a simple annual summary: total revenue by source (dues, concessions, sponsorships, fundraisers), total expenses by category, and the ending cash position compared to the prior year. This becomes the backbone of your 990-N or 990-EZ filing, since those forms ask for exactly this kind of breakdown. If your organization is large enough to require an independent financial review or audit (some states set a gross-receipts threshold that triggers this for charitable organizations registered with the state), your monthly and annual reports are also what the auditor will ask for first. Keeping them clean all year makes that review dramatically cheaper and faster.
What's the difference between a treasurer and a bookkeeper or accountant?
A treasurer is an elected officer accountable to the board for the organization's finances; a bookkeeper or accountant is a role (paid or volunteer) that does the data entry and technical work the treasurer oversees. In small nonprofits these are almost always the same person, which is fine, but it's worth knowing which hat you're wearing. The treasurer's job includes things a bookkeeper's doesn't: deciding (with the board) how to allocate a budget, signing off on financial policy, representing the finances at board meetings, and taking legal responsibility as an officer under your state's nonprofit corporation act. A bookkeeper's job is mechanical: recording transactions accurately and keeping the ledger current. An accountant, especially a CPA, brings something else again: technical expertise in tax law, financial statement preparation, and (for organizations that need one) independent audits. A volunteer treasurer is not expected to have CPA-level expertise, and shouldn't pretend to. If your organization's finances get complicated (payroll, large grants, real estate, an endowment), that's the point to bring in paid professional help rather than stretching a volunteer past what's reasonable. None of this article, or any general reference guide, replaces actual advice from a CPA or attorney licensed in your state when the stakes are high enough to need it.
Frequently asked questions
What does a treasurer do?
A treasurer manages an organization's money: tracking income and expenses, reconciling bank accounts, reporting to the board, and handling tax filings like the IRS Form 990-series. In small nonprofits and clubs it's one volunteer doing bookkeeping, reporting, and compliance all at once, usually with no paid staff backing them up.
What is a treasurer?
A treasurer is an elected or appointed officer legally and practically responsible for an organization's finances. Nonprofit bylaws typically name the treasurer as one of a required set of officers, with custody of funds and a duty to keep accurate financial records and report regularly to the board.
What do treasurers do day to day?
Day to day, treasurers deposit funds, log transactions, and file receipts. Monthly, they reconcile the bank statement and report to the board. Annually, they build the budget, close the books, and file the group's IRS return (often the 990-N e-Postcard for small nonprofits).
What does a treasurer do in a club?
A club treasurer collects dues and fundraising money, pays for supplies or events, keeps a simple ledger, and reports balances at meetings. Clubs that run raffles or concessions often also need a state charitable gaming license, separate from any IRS filing requirement.
What does a club treasurer do differently from a corporate treasurer?
A club treasurer handles smaller amounts but has less oversight: often no paid bookkeeper, no finance committee, and frequent turnover as members graduate or move on. Basic controls like two-person cash counts and separate bank statement review matter more here, not less, because there's usually nobody else checking the work.
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. Versions include the 990-N e-Postcard for gross receipts normally under $50,000, the 990-EZ for mid-size organizations, and the full Form 990 for larger ones, per IRS instructions.
What is a 990 tax form?
A 990 tax form is the IRS's annual information return for tax-exempt organizations. It isn't a bill; it's a public accounting of the group's finances and activities, filed annually. Nearly every tax-exempt organization except churches must file some version, based on gross receipts and total assets.
What is the 990-N and who has to file it?
The 990-N (e-Postcard) is the shortest IRS annual filing, for organizations with gross receipts normally $50,000 or less. It's due the 15th day of the 5th month after the fiscal year ends. Filing takes just a few minutes online but is easy to forget, and missing it three years running triggers automatic revocation of tax-exempt status.
What happens if a nonprofit misses its Form 990 filing for several years?
After three consecutive missed years, the IRS automatically revokes the organization's tax-exempt status as of the third year's filing deadline. There's no separate warning notice specific to your group beyond published IRS guidance. Reinstatement requires filing Form 1024 or 1024-A plus any delinquent returns, and sometimes a reasonable-cause statement under the IRS's reinstatement revenue procedure.
Does a treasurer need to be a CPA or accountant?
No. Most nonprofit and club treasurers are volunteers with no accounting background. The role requires accurate recordkeeping and honest reporting, not a professional credential. Organizations with complex finances (payroll, large grants, audits) should bring in a paid CPA for those specific tasks rather than expecting the volunteer treasurer to cover everything.
What records should a new treasurer get during a handoff?
At minimum: the organization's EIN, the last three years of filed 990s or proof none were required, current bank statements and online access, a list of outstanding bills and pledges, and the current year's budget versus actual spending. Verify exempt status directly on the IRS's Tax Exempt Organization Search tool as a first check.
Do booster clubs and PTOs need a raffle license to fundraise?
Often yes. Most states require a charitable gaming or raffle license before selling raffle tickets or running 50/50 drawings, though thresholds and exemptions vary widely by state. Confirm the specific requirement with your state's charity office or attorney general's charitable gaming division before running any raffle.
How often should a treasurer report to the board?
At every regular board meeting, at minimum: current cash balance, income and expenses since the last report, and budget-to-actual comparison. Add an annual summary at fiscal year-end. This same information becomes the backbone of your annual 990-series filing, so keeping it current all year saves work later.
Sources
- California Legislature, Corporations Code Section 5213: State nonprofit corporation statutes assign the treasurer/CFO officer responsibility for financial books and records
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): 990-N eligibility for gross receipts normally $50,000 or less and the filing deadline (15th day of 5th month after fiscal year end)
- IRS, Automatic Revocation of Exemption: Organizations that fail to file required returns for three consecutive years automatically lose tax-exempt status
- IRS, Instructions for Form 990 Return of Organization Exempt From Income Tax: Filing thresholds distinguishing 990-N, 990-EZ, full 990, and 990-PF by gross receipts and total assets
- IRS, Tax Exempt Organization Search: Public tool to verify an organization's current exempt status and view filed Form 990s
- IRS, Revenue Procedure 2014-11 (Reinstatement After Automatic Revocation): Procedures and reasonable-cause requirements for reinstatement of tax-exempt status after automatic revocation