Last updated 2026-07-24
TL;DR
A treasurer position means you track the money: deposits, disbursements, reconciliations, and reports to the board. For most booster clubs and PTOs, it also means filing an annual IRS return (Form 990, 990-EZ, or 990-N) and following state rules on raffles and charitable solicitation. It's a real job, not a formality, and skipping the filings can cost the group its tax-exempt status.
What does a treasurer do?
A treasurer keeps the organization's financial life straight: recording every dollar in, every dollar out, matching those records to bank statements, and telling the board (in plain language) how much money the group actually has. That's the job in one sentence. Everything else is detail. In practice, the role splits into four buckets. Bookkeeping (tracking income and expenses in a ledger or software). Banking (deposits, reconciliations, signers on the account). Reporting (a monthly or quarterly financial statement for the board, plus an annual report for members). And compliance (the tax filings and state registrations that keep the group legal). Most people who take this job are volunteers with a full-time job elsewhere and zero accounting background. That's normal. The IRS and state charity offices don't expect you to be a CPA. They do expect the group's money to be tracked and its paperwork to be current. Those are different bars, and the second one is achievable by almost anyone willing to spend a few hours a month on it. One thing that trips up new treasurers: the treasurer is more than a bookkeeper for the current year. You're also the person who has to explain last year's numbers to an auditor, a new board, or the IRS if a letter shows up. Keep records for at least three years, longer if your state requires it for charity filings (confirm with your state charity office).
What is a treasurer?
A treasurer is the officer or volunteer responsible for an organization's money, its records, and (for a nonprofit) its compliance with tax and state charity rules. The title exists in bylaws, not statute, so what the job includes depends on what your specific bylaws say. That matters more than people think. Two booster clubs can both call the role 'treasurer' and mean very different things. One group's treasurer just writes checks and reports a balance at meetings. Another group's treasurer manages a five-figure budget, signs contracts with vendors, and files the IRS return alone. Read your bylaws on day one. If they're vague or missing (common in booster clubs that formed informally), that's a fixable problem, but fix it before you're three months into the job and guessing at your own authority. Legally, if your organization is incorporated as a nonprofit and has federal tax-exempt status, the treasurer is often the person whose name goes on IRS filings and state annual reports. That's a real signature, not a formality. Some states also require nonprofits to designate specific officer titles (treasurer among them) in their articles of incorporation or corporate filings, so check your state's nonprofit corporation statute if you're setting up the organization for the first time.
What do treasurers do day to day, month to month, year to year?
| Weekly/as needed | Deposit fundraiser cash, pay approved bills, log transactions | |
|---|---|---|
| Monthly | Reconcile bank statement, report balance and activity to board | |
| Per event | Track raffle/fundraiser income and expenses separately, confirm any raffle license is filed with the state | |
| Annually | File Form 990-N, 990-EZ, or 990 with the IRS [1]; renew state charitable registration if applicable | |
| At transition | Hand over bank access, records, and passwords to the incoming treasurer | The single biggest mistake new treasurers make is treating the annual filing as optional because 'we're small.' It isn't optional. Even a group with $200 in the bank has to file something with the IRS every year if it holds federal tax-exempt status, even if that filing is the free, eight-question Form 990-N. |
Day to day, a treasurer deposits checks and cash from fundraisers, pays invoices, and keeps receipts. Month to month, the job is reconciliation: matching the checkbook or accounting software against the bank statement, and producing a report for the board meeting. Year to year, it's the big compliance items: the annual tax filing, state charitable solicitation renewal (if required), and often a transition of records to the next treasurer. Here's a rough timeline for a typical school-year booster club: | Frequency | Task |
What is Form 990?
| 990-N (e-Postcard) | Smallest orgs | Normally $50,000 or less [1] | |
|---|---|---|---|
| 990-EZ | Small/mid orgs | Gross receipts under $200,000 and total assets under $500,000 [3] | |
| 990 (full) | Larger orgs | Gross receipts $200,000+ or assets $500,000+ [3] | See the full breakdown on form 990 and 990 tax form requirements for exact thresholds and what each version asks for. |
Form 990 is the annual information return that most tax-exempt organizations file with the IRS. It's not a tax bill in the traditional sense (exempt organizations usually owe no income tax), but it is a legally required report on the organization's finances, activities, and governance, and it becomes a public document once filed. The IRS explains it directly: "Tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations file Form 990 to provide the IRS with the information required by section 6033" [2]. Section 6033 of the tax code is what actually creates the filing requirement, not agency preference. There are several versions depending on the organization's size: | Form | Who files it | Gross receipts threshold (roughly) |
What is the 990 tax form, in plain terms?
The 990 tax form is how a nonprofit tells the government (and the public) what it took in, what it spent, who runs it, and what it actually does with its money. Think of it as a combination financial statement and activity report, filed once a year. For a booster club or PTO, the relevant sections usually cover total revenue (dues, fundraisers, donations), total expenses (uniforms, equipment, event costs), and a description of the organization's mission and program activities. If your group is small enough to file the 990-N, you skip almost all of that detail and just confirm eight basic facts online: name, address, EIN, tax year, confirmation that gross receipts are normally $50,000 or less, and that the organization hasn't terminated [1]. Don't confuse 'small filing' with 'no filing.' The IRS is explicit that organizations eligible for the 990-N must still file it: "Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less" are required to file the e-Postcard annually unless they choose to file a full 990 or 990-EZ instead [1]. Miss it three years running and the IRS automatically revokes the organization's tax-exempt status, no warning letter required beyond the missed filings themselves [4].
What does a treasurer do in a club?
In a club setting (a booster club, a PTO, a youth sports association), the treasurer usually wears more hats than the title suggests. Beyond bookkeeping, club treasurers often manage: Fundraiser accounting: tracking gross income and expenses for each car wash, concession stand, or raffle separately, so the board can see which fundraisers are actually profitable. Cash handling: counting and depositing cash from concession stands or gate admissions, ideally with a second person present to count and sign off, since cash is where most volunteer-run groups get into trouble. Vendor and reimbursement management: paying coaches' stipends, reimbursing parents for supplies, and keeping receipts for every payment. Budget tracking: comparing actual spending against whatever budget the board approved at the start of the season. Communication: a short written report at every board meeting, even if it's just three numbers (starting balance, activity, ending balance). A well-run club treasurer role also includes basic financial controls: two signers on the bank account, no single person both approving and paying an expense, and a second set of eyes on cash counts. See financial controls guidance for the specifics, since these habits prevent both honest mistakes and the rare but real cases of misuse that make local news.
What does a club treasurer do that's different from a corporate treasurer?
A corporate treasurer manages cash flow, investments, and debt for a company with paid finance staff behind them. A club treasurer is usually a volunteer doing all of that, plus the actual data entry, with a shoebox of receipts and maybe a spreadsheet. The scale is smaller, but the accountability is arguably higher, because there's no backup accounting department to catch errors. The other big difference: club treasurers of tax-exempt organizations have compliance duties a corporate treasurer typically doesn't, like filing Form 990 variants with the IRS and, in many states, registering with a state charity office or attorney general before soliciting donations. Some states require this registration even for small local groups; requirements and thresholds vary a lot, so confirm with your state charity office or attorney general's office directly rather than assuming a small budget exempts you. Club treasurers also tend to serve short terms, often one to three years, which means institutional knowledge walks out the door constantly. That's why a documented handoff process matters more for a booster club than it does for most businesses. See handoff and audits for what a clean transition actually looks like on paper.
What happens if a treasurer doesn't file the required IRS forms?
If an organization required to file an annual return doesn't file for three consecutive years, the IRS automatically revokes its federal tax-exempt status. This isn't a discretionary penalty; it's built into the law. The IRS states plainly: "Organizations that fail to file required Form 990-series returns or notices for three consecutive years will automatically lose their tax-exempt status" [4]. The consequences are concrete. Donations to the group are no longer tax-deductible for donors. The organization may owe federal income tax on revenue going forward. And the group's name appears on the IRS Auto-Revocation List, a public database [4], which parents and school administrators absolutely do check when deciding whether to trust a booster club with their money. Getting reinstated involves filing Form 1023 or 1023-EZ (the exemption application) again, sometimes with retroactive reinstatement available if you apply within 15 months of the revocation date, per IRS guidance on Revenue Procedure 2014-11 [5]. It's a real process with real fees, not a quick fix, so the smarter move is never missing three years in the first place. If you've inherited a group that's already on the revocation list, that's a specific, fixable project, not a reason to panic or dissolve the organization.
Does a treasurer need to be a CPA or bookkeeper by trade?
No. Nothing in the tax code or in typical nonprofit bylaws requires a treasurer to have any accounting credential. The IRS forms for small organizations are built for exactly this: the 990-N is eight questions filed online in about ten minutes once you have your EIN and basic org info [1]. What actually matters is consistency and organization, not credentials. A treasurer who reconciles the bank account every month, keeps receipts, and files on time will outperform a CPA who does the books once a year in a rush. The job rewards habit more than expertise. That said, know your limits. If your group is growing past the 990-EZ threshold (gross receipts over $200,000 or assets over $500,000) [3], or if you're dealing with a state audit request, an IRS notice beyond a routine reminder, or a raffle license application with legal language you don't understand, it's worth paying a local accountant or attorney for an hour of their time. That's not a failure. It's how a $150 consultation saves you from a mistake that costs thousands to fix later.
How do you set up the treasurer role so the next person doesn't struggle?
Write down what you do, as you do it, not at the end of your term when you're rushing to hand off. A simple procedures document (bank login process, filing deadlines, who has signing authority, where receipts live) saves the next treasurer weeks of guessing. At minimum, a clean handoff packet includes: the EIN and any IRS determination letter, the last three years of filed 990-series returns, current bank statements and reconciliations, a list of authorized signers, any state charity registration confirmations, and a simple year-over-year budget comparison. Most of this takes one afternoon to assemble if you've kept records along the way, and about ten frustrating hours if you haven't. This is exactly the gap our $99 one-time State-Personalized Treasurer Kit is built to close: state-specific filing checklists, deadline trackers, and handoff templates so a volunteer treasurer isn't reconstructing this from scratch every one to three years. It's not a substitute for a CPA or attorney, and it doesn't guarantee any filing outcome or exempt status, but it does turn 'figure out the compliance calendar yourself' into a checklist you can hand off. Whatever tools you use, the goal is the same: nobody should have to relearn this role from zero every time a volunteer rotates out.
What records should a treasurer keep and for how long?
Keep bank statements, reconciliations, receipts, invoices, board meeting financial reports, and copies of every filed tax return and state registration. Digital copies are fine; a shared drive the whole board can access (more than the treasurer's personal laptop) is safer than any single person's files. On retention length, there's no single federal rule for all nonprofit financial records, and requirements vary by document type and state, so this is genuinely a 'confirm with your state charity office' item. As a practical floor, most nonprofit accounting guidance suggests keeping tax returns and supporting financial records for at least three to seven years, since that covers typical statute-of-limitations windows for both IRS review and state charity audits. Permanent records (articles of incorporation, IRS determination letter, bylaws) should just be kept forever, digitally, in more than one place. Don't store the only copy of anything on a treasurer's personal email or a device tied to their job. Groups lose years of records this way when a volunteer treasurer moves, changes jobs, or simply forgets to forward the folder.
Frequently asked questions
What does a treasurer do?
A treasurer tracks all of an organization's money: deposits, expenses, bank reconciliations, and board reporting. For tax-exempt groups, the role also includes filing the annual IRS return (Form 990, 990-EZ, or 990-N) and, in many states, registering with a state charity office before fundraising.
What is a treasurer?
A treasurer is the officer responsible for an organization's finances and financial records. The exact duties come from the group's bylaws, so they vary: some treasurers just report a balance at meetings, others manage the full budget, signing authority, and IRS compliance alone.
What do treasurers do?
Treasurers handle bookkeeping (recording income and expenses), banking (deposits, reconciliations, signers), reporting (monthly updates to the board), and compliance (annual tax filings, state charity registration). The mix depends on the organization's size and bylaws, but those four buckets cover nearly every treasurer role.
What a treasurer does in a small booster club specifically?
In a small booster club, the treasurer typically counts and deposits fundraiser cash, pays coaches and vendors, tracks each fundraiser's profit separately, reports numbers at meetings, and files the IRS Form 990-N annually if the club is under the roughly $50,000 gross receipts threshold for that form.
What is Form 990?
Form 990 is the annual information return the IRS requires from most tax-exempt organizations, reporting revenue, expenses, and activities under Internal Revenue Code section 6033. It becomes a public record once filed, and there are size-based versions: the 990-N, 990-EZ, and full 990.
What is a 990 tax form used for?
It's used to report a nonprofit's annual finances and operations to the IRS and, indirectly, to the public, since filed 990s are public documents. It confirms the organization is still operating within its exempt purpose and reports revenue, expenses, and (for larger orgs) governance details.
What is the 990 threshold for small organizations?
Organizations with gross receipts normally $50,000 or less can file the simplified Form 990-N (e-Postcard) instead of a full return, per IRS guidance. Above that, up to $200,000 in gross receipts and under $500,000 in assets, groups typically file the 990-EZ; larger organizations file the full Form 990.
What does a club treasurer do differently from a company treasurer?
A club treasurer is usually an unpaid volunteer handling both the strategic decisions and the actual data entry, with added duties like IRS 990-series filings and sometimes state charitable solicitation registration that most corporate treasurers never deal with.
What happens if a nonprofit treasurer misses three years of IRS filings?
The IRS automatically revokes the organization's tax-exempt status after three consecutive years of missed required filings, no additional warning needed. The group then appears on the IRS Auto-Revocation List and must reapply for exemption, sometimes with retroactive reinstatement available if filed within 15 months.
Does a booster club treasurer need to be a CPA?
No. There's no legal requirement for a treasurer to hold any accounting credential. The IRS designed the 990-N specifically for small, volunteer-run organizations; it's an eight-question online form. Bigger or more complex groups may still benefit from occasional paid accounting help.
How long should a treasurer keep financial records?
There's no single federal retention rule covering every document type, so specifics vary by state. As a practical floor, keep tax filings and financial records three to seven years, and keep permanent documents (IRS determination letter, bylaws, articles of incorporation) indefinitely in a shared, not personal, storage location.
What should a new treasurer do in the first month on the job?
Get the bylaws, the EIN, the last three years of filed tax returns, current bank statements, and a list of authorized signers. Confirm the group's IRS status isn't already revoked by checking the IRS Auto-Revocation List, and confirm any state charity registration is current.
Sources
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N e-Postcard): Most tax-exempt organizations must file an annual return (Form 990, 990-EZ, or 990-N)
- IRS, About Form 990: Purpose of Form 990 under Internal Revenue Code section 6033
- IRS, About Form 990-EZ: 990-EZ eligibility thresholds: gross receipts under $200,000 and total assets under $500,000
- IRS, Automatic Revocation of Exemption: Three consecutive years of missed required filings triggers automatic revocation, and the org appears on the public revocation list
- IRS, Revenue Procedure 2014-11, reinstatement after automatic revocation: Retroactive reinstatement process and 15-month filing window after automatic revocation