What is a nonprofit treasurer's responsibility?

Last updated 2026-07-25

what does a treasurer do for a nonprofit?

A nonprofit treasurer is the person accountable for the organization's money: what comes in, what goes out, and whether the books match reality. That's the short version. The longer version is that the treasurer sits at the intersection of bookkeeping, compliance, and board reporting, and in a small booster club or PTO, they're often doing all three jobs alone. Day to day, that means recording deposits and expenses, reconciling the bank statement every month, and keeping receipts organized so nobody has to reconstruct six months of Venmo screenshots in April. Month to month, it means giving the board a clear picture: how much cash is on hand, what's been spent on which program, and whether spending is tracking to whatever budget the group approved. Year to year, the treasurer's biggest single obligation is usually the annual IRS filing. Every tax-exempt organization, no matter how small, has to file some version of Form 990 every year or risk losing its exempt status ^[1]. Missing that filing for three years running triggers automatic revocation, no warning letter required beyond what the IRS already sends ^[2]. None of this requires an accounting degree. It requires consistency: the same reconciliation, the same filing cadence, the same paper trail, every single year, even when the treasurer role changes hands.

what is a treasurer, exactly, and how is the role different from a bookkeeper?

A treasurer is an elected or appointed officer of the organization, usually named in the bylaws, with fiduciary responsibility for the group's finances. A bookkeeper is a task: entering transactions and keeping ledgers current. Plenty of small nonprofits have one person doing both jobs, but they're not the same thing. The bookkeeping part is mechanical. Record the deposit, record the expense, reconcile the bank statement, close out the month. Any organized person can learn it in a weekend. The fiduciary part is the harder half. As a fiduciary, the treasurer is expected to act in the organization's best interest, not their own, and to exercise reasonable care over how money is handled. That's why most competent boards require two signatures on checks over a set dollar threshold, require the treasurer's numbers to get reviewed by someone else at least annually, and rotate financial duties instead of letting one person control deposits, disbursements, and reconciliation with zero oversight. The National Council of Nonprofits recommends internal controls that separate these duties specifically because concentration of financial control in one person is the single biggest risk factor for both fraud and honest mistakes going undetected ^[3]. If your bylaws don't spell out what the treasurer is supposed to do, that's a gap worth fixing at the next board meeting, not something to leave vague until there's a dispute.

what do treasurers do on a monthly and annual basis?

Monthly bank reconciliation	Yes	No
Approving the annual budget	Drafts it	Approves it
Filing the 990/990-N/990-EZ	Yes (or hires help)	Reviews before filing
Signing checks over threshold	One signer	Second signer
Fraud investigation if something's off	Reports it	Decides response	A lot of new treasurers underestimate how much of this job is just documentation. If a bank statement, a receipt, and a board-approved budget line don't all agree, that's the thing that turns a routine annual review into a stressful one.

On a monthly basis, a treasurer typically: reconciles the bank and any PayPal/Venmo/Square accounts against the internal ledger, files receipts and invoices against every recorded transaction, prepares a short cash position report for the board, and flags anything that looks off (a duplicate charge, a missing deposit, a vendor invoice nobody remembers approving). On an annual basis, the list gets longer: closing out the fiscal year's books, preparing or handing off numbers for the 990 filing, budgeting for the next year with the board, renewing any state charitable registration or raffle license if the group runs raffles, and doing a clean handoff packet if the treasurer role is changing hands. Here's a quick reference for what typically falls on the treasurer's plate versus what usually sits with the full board: | Task | Usually treasurer's job | Usually board's job |

what does a treasurer do in a club, like a booster club or PTO?

In a booster club, PTO, or youth sports league, the treasurer's job looks the same in structure but smaller in scale: track dues and fundraiser proceeds, pay coaches' stipends or referee fees, reimburse parent volunteers for supplies, and keep enough of a paper trail that when parents ask 'where did the concession stand money go,' there's a real answer. The stakes are still real even at small dollar amounts. Most booster clubs and PTOs qualify for tax exemption under IRC Section 501(c)(3) as charitable or educational organizations, or occasionally 501(c)(4), and that exemption isn't automatic just because the group is small and volunteer-run ^[1]. If the group has ever applied for and received a determination letter, or gotten swept into exempt status through a group exemption from a state PTA, it has annual filing obligations regardless of revenue size. Club treasurers also run into cash-handling problems that bigger nonprofits with paid staff don't see as often: concession stand cash that gets counted by one volunteer alone, raffle ticket money that changes hands three times before it hits a bank deposit, or a coach who fronts money for uniforms and gets reimbursed off a text message instead of a receipt. None of that is fraud, usually. It's just weak process, and weak process is exactly what turns into a real problem the one year someone doesn't get reimbursed right, or a volunteer's personal Venmo gets mixed up with the club's.

what is Form 990, and why does the treasurer need to know it?

Normally $50,000 or less	Form 990-N (e-Postcard)
Less than $200,000, and total assets less than $500,000	Form 990-EZ or full 990
$200,000 or more, or assets $500,000 or more	Full Form 990	These thresholds come straight from IRS instructions for the 990 series [5]. A booster club running one big fundraiser that pushes gross receipts over $50,000 for a single year has to step up to the 990-EZ or full 990 that year, even if it drops back below the threshold the next year. The treasurer doesn't necessarily have to prepare the form personally (plenty of small clubs pay a bookkeeper or CPA a few hundred dollars to do it), but the treasurer is the one who has to hand over accurate, complete numbers, and the one who usually gets asked by the board whether it got filed.

Form 990 is the annual information return that tax-exempt organizations file with the IRS. It's not an income tax return in the traditional sense (most exempt orgs owe no income tax on program revenue), but it reports revenue, expenses, program activities, and governance details, and it's public. Anyone can look up a nonprofit's 990 through the IRS Tax Exempt Organization Search ^[4]. Which version a group files depends entirely on gross receipts and assets, checked every year, not locked in once: | Annual gross receipts | Form required |

what is a 990 tax form, in plain terms, and what does it actually ask for?

A 990 tax form asks a nonprofit to report, in public detail, how much money came in, where it came from (donations, program fees, fundraising events, investment income), how much went out and on what, who's on the board, and whether the organization paid any officer, director, or key employee more than $100,000 ^[5]. For a small booster club filing 990-EZ, the form is a handful of pages: revenue, expenses, balance sheet, and a short section on program accomplishments. The IRS is direct about the consequence of skipping it: "Organizations that fail to file required returns or notices for three consecutive years will automatically lose their tax-exempt status" ^[2]. That's automatic. There's no extra warning notice beyond the standard filing reminders, and reinstatement after that point means reapplying for exempt status, sometimes with back-filing and a new user fee. A quick clarification a lot of new treasurers ask about: is the 990 the same as the 990-N? No. The 990-N (e-Postcard) is the simplified, eight-data-point version for organizations under the $50,000 gross receipts threshold. It's filed electronically and there's no paper option ^[5]. The 990-EZ and full 990 are longer forms with actual financial statements. Same family, different weight class.

what happens if the treasurer misses the 990 deadline?

The Form 990 series (990-N, 990-EZ, and full 990) is due on the 15th day of the 5th month after the organization's fiscal year ends. For a calendar-year nonprofit (fiscal year ending December 31), that's May 15 ^[5]. Organizations can request an automatic 6-month extension using Form 8868 for the 990-EZ and full 990, but the 990-N has no extension option; it's just due, or it's late. Miss it once, and generally nothing dramatic happens beyond a late notice for forms that carry penalties (990-EZ and full 990 have late-filing penalties; 990-N technically doesn't carry a monetary penalty, but a missed year still counts toward revocation). Miss it three years running, on any version, and the exemption gets automatically revoked, no board vote or IRS discretion involved ^[2]. Recovering from auto-revocation means the organization goes back to square one on federal tax-exempt status: filing Form 1023 or 1023-EZ to reapply, potentially back-filing missed returns, and paying a new IRS user fee (currently $275 for Form 1023-EZ and $600 for full Form 1023, though confirm current fees on the IRS fee schedule since they change) ^[6]. There's a streamlined retroactive reinstatement process for small organizations that file within 15 months of revocation, described in Revenue Procedure 2014-11, but it still means paperwork, a fee, and months of limbo where the group technically can't offer donors a tax deduction . This is the single most common crisis new treasurers inherit: they take over the books, discover the group hasn't filed in years, and find out on the IRS's auto-revocation list that the exemption is already gone.

what does a club treasurer do that's specific to fundraising and raffles?

Beyond routine bookkeeping, a club treasurer running fundraisers has extra obligations most new treasurers don't expect. If the group runs a raffle, most states require a specific charitable gaming or raffle license, separate from federal tax-exempt status entirely. Requirements, fees, and even legality vary a lot by state; some states ban raffles for unlicensed groups outright, others have a simple annual permit through the state attorney general or gaming commission. Confirm the current rules with your state charity office or attorney general before running any raffle, since this is exactly the kind of detail that changes and varies state to state. Most states with charitable solicitation laws also require registration before a nonprofit can legally ask the public for donations, sometimes with an annual renewal and its own reporting requirements separate from the IRS 990. This catches booster clubs off guard constantly: they've never missed a federal filing, but they've also never registered with the state, because nobody knew it was required. Confirm your state's specific charitable solicitation registration requirement with your state charity office, since thresholds and exemptions for small organizations vary widely by state. The treasurer's practical job here is less about knowing every rule cold and more about knowing which two or three offices to call before the group launches a new fundraiser: the state attorney general's charity division, and, if gaming is involved, the state's gaming or raffle licensing office.

what financial controls should a treasurer put in place?

A treasurer inheriting a set of books with no controls should aim for a handful of basics before anything fancier. None of this requires software or a subscription; it requires discipline and a couple of other people willing to sign off on things. First, two signers on every bank account, with a dollar threshold above which both have to sign or approve. Second, whoever counts cash at an event (concession stand, raffle, gate receipts) should never be the same single person who deposits it alone; count it with two people present and get both to sign a count sheet. Third, reconcile the bank statement every month against the ledger, not once a year at tax time. Fourth, keep receipts and invoices filed against every transaction, even small ones; "I remember what that was for" doesn't survive a treasurer transition or an audit two years later. The National Council of Nonprofits frames this as basic risk management: separating who authorizes spending, who has custody of funds, and who records the transaction, so no single person controls all three steps in the cycle ^[3]. For a volunteer-run booster club with five people total, full separation isn't always possible, but even partial separation (a second signer, a board member who reviews the reconciliation quarterly) closes most of the real risk. A lot of groups build this out with a state-personalized treasurer kit that bundles the specific state raffle rules, filing thresholds, and a handoff checklist together, since chasing down each rule separately eats a weekend a new treasurer usually doesn't have.

how does a treasurer hand off the books to the next person?

A clean handoff is where most of these problems either get caught early or get buried for the next person to inherit. The outgoing treasurer should hand over, at minimum: the current bank statement and reconciliation, a list of every account (bank, PayPal, Venmo, Square, any petty cash box) with login access transferred, the last three years of filed 990s or confirmation of 990-N submission, any state charitable registration or raffle license paperwork, and a simple written summary of what's owed and what's expected (a coach's stipend still pending, a vendor invoice not yet paid). A lot of boards skip this step entirely because the outgoing treasurer is a burned-out volunteer eager to be done, and the incoming treasurer doesn't know what to ask for. That's how a group ends up two years later discovering nobody filed a 990 since the last treasurer left. The fix is boring but it works: put the handoff checklist in the bylaws or a standing board policy so it happens the same way every single time, regardless of who's leaving or how amicable the exit is.

do all nonprofit treasurers need to be accountants or CPAs?

No. Most volunteer treasurers running booster clubs, PTOs, and youth sports leagues have no accounting background at all, and that's fine for the scale most of these groups operate at. What matters more is consistency: showing up every month to reconcile, keeping receipts organized, and knowing when to ask for help. That said, there's a point where hiring outside help is worth the money. If the group's gross receipts push it into full Form 990 territory ($200,000 or more), or if the group has employees with payroll tax obligations, a bookkeeper or CPA familiar with nonprofit filings is a reasonable expense, often a few hundred to low thousands of dollars a year depending on complexity and region. For a group still filing 990-N or 990-EZ, most of the work is genuinely doable by an organized volunteer with a checklist. This article and any kit or checklist referenced here is a starting reference, not tax or legal advice, and it isn't a substitute for a CPA or attorney when a group's situation gets complicated (employees, large endowments, multi-state operations). Confirm specifics with the IRS and your state charity office before making filing or licensing decisions.

Frequently asked questions

what does a treasurer do?

A treasurer tracks all money coming in and going out of the organization, reconciles bank accounts monthly, keeps receipts and records organized, reports the financial picture to the board, and handles or oversees the annual IRS Form 990 filing. In small clubs, they often also manage fundraiser cash handling and any state raffle or charity registration.

what is a treasurer?

A treasurer is an officer of a nonprofit, club, or association, usually named in the bylaws, with fiduciary responsibility for the group's money. They're accountable to the board and, indirectly, to donors and members, for accurate records and honest use of funds.

what do treasurers do day to day versus once a year?

Day to day, treasurers record transactions and keep receipts filed. Monthly, they reconcile bank statements and report cash position to the board. Annually, they close the books, file the appropriate IRS Form 990 variant, renew any state charity or raffle registration, and often hand off records if the role is changing.

what is Form 990?

Form 990 is the annual information return the IRS requires from tax-exempt organizations, reporting revenue, expenses, program activities, and governance. It's not an income tax bill; it's a public disclosure document. Which version (990-N, 990-EZ, or full 990) depends on gross receipts and assets, checked every filing year.

what does a treasurer do in a club like a booster club or PTO?

A club treasurer manages dues, fundraiser proceeds, and reimbursements at a smaller scale, but with the same core duties: bank reconciliation, receipt tracking, and annual IRS filing. Booster clubs and PTOs that are 501(c)(3) or swept into a group exemption still must file some version of Form 990 every year regardless of size.

what does a club treasurer do that a regular treasurer doesn't?

Not much structurally, but club treasurers deal more often with informal cash handling: concession stands, raffle tickets, and volunteer reimbursements paid off receipts or text messages instead of formal invoices. That makes basic controls (two people counting cash, receipts for every reimbursement) especially important at the club level.

what is a 990 tax form?

A 990 tax form is the IRS's public annual reporting form for tax-exempt organizations. It documents income sources, spending by category, board composition, and executive compensation over $100,000, and is filed instead of a traditional income tax return since most exempt income isn't taxed.

what is the 990-N and who has to file it?

The 990-N, also called the e-Postcard, is the simplest version of the 990 series, for organizations with gross receipts normally $50,000 or less. It's filed electronically only, asks for about eight data points, and has no paper option or filing fee, per IRS instructions.

what happens if a nonprofit doesn't file a 990 for three years?

The IRS automatically revokes tax-exempt status after three consecutive years of missed required filings, with no additional warning or board hearing involved. Reinstatement requires reapplying for exempt status, potentially back-filing, and paying a new IRS user fee; confirm current fees and process with the IRS.

does a small booster club really need to file anything with the IRS?

Yes, if it holds any form of federal tax-exempt status. Every 501(c)(3) or 501(c)(4) organization, regardless of size, must file some version of Form 990 (990-N at minimum) every year or risk automatic revocation after three missed years, per IRS guidance.

who is legally responsible if the treasurer makes a mistake on the books?

The treasurer has fiduciary responsibility, but the full board typically shares ultimate legal accountability for the organization's finances and compliance, since boards are expected to review and approve financial reports. This isn't legal advice; specific liability depends on your state's nonprofit law and your organization's bylaws.

does a treasurer need to be a CPA?

No. Most volunteer treasurers at booster clubs, PTOs, and youth sports leagues have no formal accounting background. What matters more is consistent monthly reconciliation and organized records. Groups approaching full Form 990 thresholds or with employees often benefit from hiring a bookkeeper or CPA for the annual filing.

what's the difference between a treasurer and a bookkeeper in a nonprofit?

A treasurer is an elected or appointed officer with fiduciary responsibility for the organization's finances, usually a board member. A bookkeeper is a task, often outsourced, focused on recording transactions accurately. Small nonprofits frequently have one person doing both jobs, but the roles are conceptually distinct.

Sources

1. IRS, Exemption Requirements - 501(c)(3) Organizations: Tax-exempt status under 501(c)(3) is not automatic and requires meeting specific exemption requirements
2. IRS, Automatic Revocation of Exemption: Organizations that fail to file required returns or notices for three consecutive years automatically lose tax-exempt status
3. IRS, Tax Exempt Organization Search: Filed Form 990 returns are publicly searchable through the IRS database
4. IRS, Annual Exempt Organization Return: Who Must File: Filing thresholds and due dates for Form 990-N, 990-EZ, and full Form 990 based on gross receipts and total assets
5. IRS, Instructions for Form 1023-EZ: Current IRS user fees for Form 1023-EZ exemption applications
6. IRS, Revenue Procedure 2014-11: Streamlined retroactive reinstatement: Small organizations that file within 15 months of automatic revocation may use a streamlined retroactive reinstatement process