Last updated 2026-07-25
TL;DR
A club treasurer tracks money in and out, keeps the books, reports finances to the board and members, and files the group's annual IRS return (Form 990-N, 990-EZ, or 990). Most small booster clubs and PTOs qualify for the 990-N e-Postcard if gross receipts are normally $50,000 or less [1].
what does a treasurer do?
A treasurer is the person who owns the club's money story: what came in, what went out, what's left, and whether that matches what the bank says. That's the job in one sentence. Everything else is detail. In practice, a treasurer usually handles four buckets of work. First, recording: logging deposits, expenses, and reimbursements as they happen, not three months later. Second, reporting: giving the board a clear picture at every meeting, usually a simple income-and-expense summary plus a bank balance. Third, controls: making sure no single person can both approve and pay an expense without a second set of eyes, and that cash from concessions or raffles gets counted by two people before it's deposited. Fourth, compliance: filing whatever the IRS and the state require so the club doesn't lose its tax-exempt status or its ability to fundraise legally. None of this requires an accounting degree. It requires consistency. The treasurers who get in trouble aren't usually dishonest, they're just behind: three months of unlogged Venmo payments, a shoebox of receipts, no idea what the 990 deadline even is. Catching up is much harder than staying current.
what is a treasurer?
A treasurer is an officer of an organization, usually elected or appointed under the group's bylaws, responsible for its finances. In a small nonprofit like a booster club, PTO, or youth sports league, the treasurer is often the only person who regularly looks at the bank account. Most state nonprofit corporation laws require at least some officer to handle finances, though the exact title and duties vary by state and by the organization's own bylaws. If your club is incorporated as a nonprofit, check your state's nonprofit corporation statute (usually filed with the Secretary of State) and your own bylaws for the specific language defining the treasurer's duties, since it's the bylaws, not a universal legal standard, that usually spell out exactly what you're on the hook for. The treasurer role sits between two other roles worth distinguishing. A bookkeeper records transactions. An auditor (or audit committee) checks the bookkeeper's work after the fact. A treasurer often does bookkeeping personally in a small club, but the job is bigger than that: it includes budgeting, reporting to the board, and making sure filings happen on time.
what do treasurers do day to day?
Day to day, a treasurer's calendar looks less exciting than the title suggests. Weekly or biweekly: reconcile the bank account against the check register or accounting software, log any new deposits or checks, and follow up on outstanding reimbursement requests. Monthly: prepare a summary for the board meeting, showing income, expenses, and a running balance versus the approved budget. At certain points in the year the workload spikes. Before a big fundraiser (a raffle, a concession stand at a tournament, a car wash), the treasurer usually sets up a cash-handling plan: who counts the money, how it gets counted (two people, never one), and how quickly it goes to the bank. After the event, that same discipline applies to reconciling actual proceeds against what was expected. At year-end or fiscal year-end, the big compliance items land: the annual IRS filing, any required state charitable solicitation renewal, and if the club is on a school's or league's fiscal calendar, a final report to outgoing and incoming boards. The single most useful habit a treasurer can build is a written procedures binder, even a rough one, that says: here's where the login credentials are, here's the filing deadline, here's who signs checks over $500. Whoever takes over next year will thank you.
what does a club treasurer do that's different from a corporate treasurer?
A corporate treasurer manages cash flow, debt, and investment strategy for a company with paid finance staff behind them. A club treasurer usually is the entire finance department: bookkeeper, controller, and filer rolled into one volunteer. The stakes are different too. A club treasurer isn't managing millions in working capital. They're managing a checking account that might hold anywhere from a few hundred dollars to low six figures for a large booster club, and the consequences of sloppy records are reputational and legal, not shareholder-driven. Lose the club's 501(c)(3) status through an unfiled 990, and donors can no longer deduct their contributions, and the club may owe back taxes on income it thought was exempt [1]. One practical overlap: both roles need segregation of duties. In a company that means separate departments approving purchases and cutting checks. In a club it usually means two officers, often the treasurer and president, both required to sign checks above a threshold the board sets, commonly $250 or $500 depending on the group's bylaws.
what does a treasurer of a club do with the budget?
| Dues income | $12,000 | $11,400 | -$600 | |
|---|---|---|---|---|
| Concession income | $8,000 | $6,200 | -$1,800 | |
| Uniforms | $6,000 | $6,100 | +$100 | |
| Tournament fees | $4,500 | $4,500 | $0 | That kind of table takes ten minutes to update and tells the board more than a stack of receipts ever will. |
Budgeting is where a treasurer moves from recordkeeping to actual leadership. A good club budget starts with last year's actuals, not a guess. Pull the prior year's income and expenses by category (dues, concessions, uniforms, tournament fees, insurance) and use that as the baseline, then adjust for known changes: a new competition schedule, a dues increase, a bigger equipment purchase. Most clubs build the budget in the spring or early summer, before the new season starts, and present it to the full board or membership for a vote. Once approved, the treasurer's job is to track actual spending against that budget monthly and flag variances early. If concession revenue is running 20% behind budget in October, that's a conversation to have in October, not at the year-end wrap-up when there's no time left to adjust. A simple two-column budget-vs-actual table, updated monthly, catches most problems before they become crises: | Category | Budgeted | Actual (YTD) | Variance |
what is form 990?
Form 990 is the annual information return that most tax-exempt organizations file with the IRS. It's not an income tax return in the way most people think of taxes; it's a public disclosure document that reports the organization's revenue, expenses, activities, and governance for the year. There are several versions depending on the organization's size. The IRS explains that "organizations with gross receipts less than $50,000 are required to file the e-Postcard," (Form 990-N) [2]. Organizations with gross receipts under $200,000 and total assets under $500,000 generally may file the shorter Form 990-EZ, and larger organizations file the full Form 990 [3]. Private foundations file a different version, Form 990-PF, regardless of size [3]. For details on what the full form covers and how the versions differ, see form 990 and 990 tax form.
what is the 990 tax form used for?
The 990 exists so the IRS and the public can see how a tax-exempt organization spends its money. It's filed instead of a corporate income tax return because 501(c)(3) and most other tax-exempt organizations don't pay federal income tax on money related to their exempt purpose. Donors, grantmakers, and watchdog sites (GuideStar/Candid, ProPublica's Nonprofit Explorer) pull data straight from 990 filings. That means a sloppy or late 990 isn't just an IRS problem, it's visible to anyone who looks up the club online. A well-prepared filing, even a simple 990-N, signals a club that has its act together. For a small booster club or PTO, the 990 also functions as the annual proof of life the IRS uses to track exempt organizations. Skip it three years running and the consequence is automatic: the IRS revokes the organization's tax-exempt status by operation of law, no warning letter required beyond the standard reminder notices [4]. More on the mechanics of the different versions is at 990 tax form and irs form 990.
what is the 990-N and who has to file it?
The 990-N, nicknamed the e-Postcard, is the simplest version of the annual filing, built for small organizations. The IRS states that most organizations whose annual gross receipts are normally $50,000 or less can file this version instead of Form 990 or 990-EZ [2]. It's genuinely short: legal name, any other names used, mailing address, website if there is one, an employer identification number (EIN), the name and address of a principal officer, the tax year, confirmation that gross receipts are still $50,000 or under, and a statement if the organization has terminated or gone out of business [2]. It's filed through the IRS's own online system, not through third-party tax software, and there's no paper version. Missing the 990-N deadline for one year isn't the end of the world. It's missing it three years in a row that triggers automatic revocation of tax-exempt status under section 6033(j) of the Internal Revenue Code [4] [5]. If your club is small and volunteer-run, this is almost certainly the version you need. Details and the exact filing steps live at 990n and form 990-n.
what happens if the treasurer misses a 990 filing?
One missed 990-N deadline usually triggers a reminder, not a penalty, since 990-N has no late filing fee attached to it directly [2]. The real danger is cumulative: three consecutive years of non-filing, and the IRS revokes the organization's exempt status automatically, with no appeal process for the revocation itself, only a reinstatement process afterward [4]. For organizations required to file the 990-EZ or full 990 (generally those with gross receipts above $50,000), there are actual daily penalties for late filing, and the amounts have increased over time with inflation adjustments; check the current penalty schedule directly on irs.gov before assuming an old number is still accurate, since these figures change year to year. Revocation isn't the same as dissolution. The organization still exists as a nonprofit corporation under state law; it just loses federal tax-exempt status, meaning it may owe corporate income tax on revenue going forward and donors can no longer deduct contributions. Reinstatement involves filing Form 1023 or 1023-EZ again along with the request for retroactive reinstatement, and it costs a filing fee and takes real paperwork. This is exactly the situation a lot of incoming booster club treasurers inherit without knowing it: check the organization's status directly using the IRS Tax Exempt Organization Search tool before assuming everything is fine [1].
what controls should a treasurer put in place for cash handling?
Cash is where small nonprofits get hurt, not through malice usually, just through sloppy handling that makes errors invisible and temptation easy. A few baseline controls cost nothing and stop most problems. Require two people to count any cash from a fundraiser, concession stand, or raffle, both signing a simple count sheet before the money leaves the table. Deposit cash within a day or two, never let it sit in someone's car or kitchen for a week. Require two signatures on checks above a set dollar threshold the board picks (common ranges are $250 to $1,000 depending on club size). Give the treasurer online view-only access to the bank account (not check-writing authority alone) so someone besides the check-writer can spot unusual activity. Reconcile the bank statement every month against the books, more than at year-end. None of this is about distrust. It's about making sure that if a mistake happens (wrong amount deposited, a bill paid twice, a receipt lost), someone catches it in weeks, not months. If your club wants a set of these controls already built out and matched to your specific state's forms and thresholds, that's exactly what the BoosterLedger State-Personalized Treasurer Kit is for. It's a one-time $99 kit built for volunteer treasurers, not a subscription and not tax advice.
what does a treasurer need to know about state fundraising and raffle rules?
Federal tax rules (the 990, exemption status) are only half the compliance picture. Most states separately regulate charitable solicitation and raffles, and the rules vary a lot state to state. Many states require charities that solicit donations above a certain revenue threshold to register with the state attorney general's office or a dedicated charities bureau before fundraising, and raffles specifically often need a separate gaming or raffle license, sometimes through the state attorney general, sometimes through a state gaming commission or local municipal clerk. There is no single national standard here. A raffle that's perfectly legal in one state might require a specific license, a bond, or a cap on prize value in another. Some states exempt small nonprofits from registration below a revenue threshold; others don't exempt anyone. Before running any raffle, confirm with your state's charity regulator (usually the attorney general's office) and your state's specific raffle or gaming statute what's required, since getting this wrong can mean fines or a shut-down fundraiser, more than a paperwork headache. This is genuinely one of the most-missed parts of the treasurer job because it's easy to assume the IRS filing covers everything. It doesn't. Federal exemption and state solicitation registration are two completely separate systems run by two completely separate agencies.
how does a treasurer hand off the role to the next person?
A clean handoff is the single best gift an outgoing treasurer can give a club, and it's shockingly rare. The minimum handoff package should include: the current bank statement and reconciliation, a list of all signers on the account, the EIN and a copy of the IRS determination letter if one exists, copies of the last two years of 990 filings, the current budget versus actual report, and login credentials for any online banking, accounting software, or state charity registration portal. Add a one-page memo: upcoming deadlines (990 due date, state renewal due date, insurance renewal date), any open issues (a vendor dispute, a reimbursement pending), and the names of the two other signers on the account. Do the handoff in person if at all possible, walking through the bank account together and confirming account numbers match what's on paper. A lot of clubs discover mid-crisis that nobody knows the EIN, nobody has the login to the state charity portal, and the outgoing treasurer moved out of state. Building the handoff document before it's needed, not scrambling to reconstruct it during a crisis, is the difference between a five-minute transition and a three-month one.
Frequently asked questions
what does a treasurer do?
A treasurer tracks all money coming into and going out of an organization, keeps the books reconciled against the bank account, reports the financial picture to the board regularly, and handles required filings like the annual IRS return. In a small club, the treasurer is often the only person watching the money closely.
what is a treasurer in a club?
A treasurer is an elected or appointed officer responsible for a club's finances: recordkeeping, budgeting, reporting to the board, and compliance filings like the IRS Form 990 series. Exact duties usually come from the club's own bylaws, since there's no single legal definition that applies to every organization.
what do treasurers do day to day versus at year-end?
Day to day, treasurers log deposits and expenses, reconcile the bank account, and answer reimbursement requests. At year-end, they close the books, prepare a final financial report, file the annual IRS return (often Form 990-N for small clubs), and renew any required state charity registration.
what is form 990?
Form 990 is the annual information return most tax-exempt organizations file with the IRS, reporting revenue, expenses, and activities. Small organizations with gross receipts normally $50,000 or less can file the short e-Postcard version, Form 990-N, instead of the longer 990 or 990-EZ [1].
what is the 990 tax form and who has to file it?
Nearly all tax-exempt organizations recognized under IRC section 501(a), except churches and a few other exceptions, must file some version of the 990 annually. Which version depends on gross receipts and total assets: 990-N under $50,000 in gross receipts, 990-EZ generally under $200,000, full 990 above that [1][3].
what is the difference between 990-N, 990-EZ, and full 990?
990-N (e-Postcard) is for organizations with gross receipts normally $50,000 or less and asks for basic identifying information only [1]. 990-EZ generally applies under $200,000 gross receipts and $500,000 total assets and includes more financial detail [3]. The full Form 990 applies above those thresholds and requires the most disclosure.
what happens if a club treasurer forgets to file the 990?
One missed year usually just means late filing, without a fee for 990-N specifically. Three consecutive missed years trigger automatic revocation of tax-exempt status under section 6033(j) of the Internal Revenue Code, with no appeal, only a reinstatement application afterward [5][6].
does a club treasurer need to be an accountant?
No. Most club treasurers are volunteers with no formal accounting background. What matters more is consistency: logging transactions promptly, reconciling monthly, and following the club's cash-handling and signing controls. Complex situations (audits, reinstatement after revocation) may still warrant a CPA.
does a booster club or PTO need to register for state charitable solicitation?
Often yes, but requirements vary widely by state, and some states exempt small organizations below a certain revenue threshold. Confirm directly with your state's attorney general's office or charity regulator before soliciting donations or running a raffle, since rules and thresholds differ from state to state.
what records should a treasurer keep and for how long?
Keep bank statements, reconciliations, receipts, board-approved budgets, and copies of all 990 filings. The IRS generally recommends keeping records that support items on a return until the statute of limitations for that return expires, commonly at least three years, though many treasurers keep exempt organization records longer given the three-year revocation rule.
what's the difference between a treasurer and a bookkeeper in a club?
A bookkeeper records transactions. A treasurer does that too in most small clubs, but also builds the budget, reports to the board, ensures internal controls exist (like two-person cash counts), and handles compliance filings. The treasurer role is broader and carries more responsibility than pure recordkeeping.
how do I know if my club's tax-exempt status has already been revoked?
Search the organization's name or EIN directly in the IRS Tax Exempt Organization Search tool on irs.gov [2]. This tool shows current exemption status and filed 990s. Many incoming treasurers discover revocation happened years earlier simply because nobody filed.
Sources
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations, Form 990-N (e-Postcard): organizations with gross receipts normally $50,000 or less can file Form 990-N instead of 990 or 990-EZ, and the required information items
- IRS, Tax Exempt Organization Search: tool to check an organization's current tax-exempt status and view filed 990s
- IRS, Which Forms Do Exempt Organizations File: gross receipts and asset thresholds determining whether an organization files 990-N, 990-EZ, or full Form 990
- IRS, Automatic Revocation of Exemption List (how organizations lose and regain exempt status): IRS process describing how organizations appear on the auto-revocation list and how reinstatement works
- 26 U.S.C. section 6033(j), Failure to file return: statutory basis for automatic revocation of tax-exempt status after three consecutive years of non-filing