Last updated 2026-07-24
TL;DR
A treasurer tracks money in and out, keeps clean records, reconciles the bank account monthly, files the required IRS return (often Form 990-N), and reports finances to the board. In a small nonprofit like a booster club or PTO, the treasurer is usually the only person who really knows the true financial picture, so the job carries more weight than the title suggests.
What does a treasurer do?
A treasurer manages an organization's money and makes sure someone else can find it, understand it, and trust it later. That's the whole job in one sentence. Everything else is detail. In practice this breaks into four buckets: tracking transactions (deposits, checks, reimbursements), keeping records organized (receipts, bank statements, a ledger or spreadsheet), reporting to the board or membership (a monthly or quarterly financial summary), and handling compliance (state registration, IRS filings, sometimes a raffle license). Small nonprofits rarely have a bookkeeper or accountant on staff, so the treasurer often does all four alone. The IRS is blunt about why this matters for tax-exempt groups: an organization has to keep records that show its income and expenses accurately enough to support whatever it claims on its annual return [1]. If the treasurer doesn't keep those records, nobody does. A useful gut check: could you hand your binder (or shared drive) to a stranger tomorrow and have them understand the last six months of money without asking you a single question? If not, tighten up the records before you tighten up anything else.
What is a treasurer?
A treasurer is the officer responsible for an organization's finances. That's the title. The role exists in corporations, nonprofits, student clubs, and volunteer groups, and the core duty is the same everywhere: safeguard and account for the money. For a booster club, PTO, or youth sports league, the treasurer is usually an elected volunteer position, not a paid job. Bylaws typically spell out the term length (one or two years is common), how the treasurer is elected or appointed, and what reports are required. If your organization doesn't have bylaws, or the bylaws are silent on the treasurer's duties, that's worth fixing at the next board meeting, because vague duties are exactly how money problems start. A treasurer is not automatically an accountant, a tax preparer, or a lawyer, and shouldn't pretend to be one. When a filing or legal question gets complicated (unrelated business income, a large donation with strings attached, a dispute over funds), the right move is to confirm with the IRS and your state charity office, or bring in a licensed CPA or attorney. Volunteering as treasurer doesn't mean you're on the hook to resolve tax law by yourself.
What do treasurers do day to day, month to month, and year to year?
The job has a rhythm. Daily or weekly, a treasurer deposits checks and cash promptly, records each transaction with a date, amount, and purpose, and keeps receipts for anything paid out. Waiting weeks to record a transaction is how errors creep in and how cash quietly goes missing without anyone noticing. Monthly, the treasurer reconciles the bank statement against the internal ledger, so the two numbers match or the difference is explained. This is the single most important recurring control in the whole job. A monthly reconciliation catches a bounced deposit, a duplicate payment, or a bookkeeping typo while it's still a small problem, not a year-end mystery. Quarterly or at each board meeting, the treasurer presents a simple report: cash on hand, income since the last report, expenses since the last report, and any upcoming big-ticket items (tournament fees, uniform orders, a fall fundraiser). Board members should be able to ask questions and get real answers, not a shrug. Annually, the treasurer closes out the fiscal year, prepares (or hands off to an accountant) whatever tax filing applies, renews any state charitable registration, and helps prep for an audit or financial review if the bylaws require one. This is also the point where a good treasurer builds a handoff packet for whoever takes over next, because volunteer turnover is constant and a well-documented year saves the next person weeks of confusion.
What does a treasurer do in a club?
In a club setting (a booster club, a PTO, a rec league board), the treasurer's job narrows to a few concrete tasks that come up constantly: collecting dues or fundraiser proceeds, paying vendors and reimbursing volunteers, tracking a budget against actual spending, and reporting to the membership at meetings. A club treasurer usually also manages one or more bank accounts, and should insist on at least two authorized signers so no single person is the only one who can move money. That's not about distrust. It's about protecting the treasurer as much as the organization, because a lone signer with no oversight is the first thing an auditor or new board member questions. Many clubs run cash-heavy events (concession stands, car washes, raffle tables), and cash is where controls matter most. A simple rule that works: two people count cash together at the end of any event, both sign a count sheet, and the money goes to the bank within a day or two, not sitting in someone's car trunk for a week. If the club is tax-exempt under IRS Section 501(c)(3) or a related category, the treasurer also owns whatever annual IRS filing applies, even if a small club's version of that filing takes ten minutes online.
What does a club treasurer do that's different from a corporate treasurer?
A corporate treasurer often manages investments, debt, and cash flow forecasting for a company with paid finance staff. A club treasurer almost never does any of that. The job is smaller in scope but higher in personal exposure, because there's usually no backup, no internal audit department, and no professional bookkeeper double-checking the work. That means a club treasurer needs to be more hands-on with basic bookkeeping than a corporate counterpart, and needs to understand (at least at a beginner level) what the IRS expects from tax-exempt organizations, what the state charity regulator expects for registration, and what a raffle license requires if the club runs games of chance. None of this requires a finance degree. It requires consistency: recording things the same way every time, on a schedule, with someone else able to check the work.
What is Form 990, and does the treasurer have to file it?
| 990-N (e-Postcard) | Smallest orgs | Normally $50,000 or less [3] | |
|---|---|---|---|
| 990-EZ | Mid-size orgs | Generally under $200,000 receipts and under $500,000 assets [4] | |
| 990 (full) | Larger orgs | Generally $200,000+ receipts or $500,000+ assets [4] | |
| 990-PF | Private foundations | Regardless of size | Most booster clubs, PTOs, and small youth sports organizations fall into the 990-N bucket, which the IRS designed to be quick: it asks for basic identifying information and is filed electronically [5]. But thresholds and forms can shift, and the org's own financial year matters, so confirm the current thresholds and correct form with the IRS before assuming which one applies. If your group needs the background on the return itself, see form 990 or the general overview at [990](/articles/treasurer-basics/990). |
Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, and activities. The IRS states plainly: "Tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations file this form to provide the IRS with the information required by section 6033" [2]. It's not an income tax bill in most cases; it's a disclosure document that keeps the exemption current and keeps the organization's finances on the public record. Which version applies depends on gross receipts and assets: | Form | Who typically files | Gross receipts threshold |
What is the 990, and why does it matter if the treasurer skips it?
The 990 (in whichever version applies) is the annual proof-of-life filing for a tax-exempt organization. Skip it and the consequences aren't a fine at first; they're worse. The IRS automatically revokes tax-exempt status for any organization that fails to file the required return or notice for three consecutive years [6]. That's not a warning shot. It's automatic, and it happens by law under Internal Revenue Code Section 6033(j), with no separate notice required for each missed year individually. Once revoked, the organization owes income tax on its revenue going forward, loses the ability to tell donors their gifts are tax-deductible, and has to apply for reinstatement, which usually means filing Form 1023 or 1023-EZ again and possibly paying a filing fee (currently in the hundreds of dollars, confirm current fee on IRS.gov since fees change) . This is the single most common way volunteer-run booster clubs and PTOs lose their nonprofit status: not fraud, not mismanagement, just three years of an outgoing treasurer forgetting to hand off the filing duty to the incoming one. If your organization has already been auto-revoked, the IRS publishes a searchable list, and reinstatement is possible but takes real paperwork and time .
What is a 990 tax form, exactly, in plain terms?
A 990 tax form is an information return, not a personal or corporate income tax return in the traditional sense. It reports what money came in (donations, dues, fundraiser proceeds, sponsorships), what money went out (program costs, admin costs, fundraising costs), who's on the board, and sometimes compensation for anyone paid. The form exists because tax-exempt status is a public trade-off: the organization doesn't pay income tax on money used for its exempt purpose, and in exchange the public (and the IRS) gets to see roughly where that money went. Most 990 filings, including the full Form 990 and 990-EZ, are public record and are often searchable through the IRS's own tools or third-party nonprofit databases. For the smallest organizations filing the 990-N e-Postcard, the form itself is minimal (legal name, EIN, tax year, confirmation that gross receipts are normally $50,000 or less, and a couple of other basic facts) [5]. It takes most treasurers under fifteen minutes once they have the EIN and login set up. See 990-n or form 990-n for the mechanics of that specific filing, and 990 tax form or irs form 990 for the fuller versions.
What financial controls should a treasurer put in place?
Controls sound bureaucratic, but for a volunteer treasurer they're mostly common sense written down so it survives turnover. The basics, roughly in order of how often they get skipped: Require two signers on the bank account, and require two people to count cash from any event. Never let one person be the only one who touches money from collection to deposit. Deposit cash and checks within a few business days, not weeks. Money sitting around is money that's hard to trace if something goes wrong, and it's an easy target for "I'll get to it later" turning into "I forgot where I put it." Reconcile the bank statement every single month against the internal records, even in slow months when nothing seems to be happening. Require a receipt or invoice for every reimbursement, no exceptions for board members or the coach's favorite vendor. Give the board a written report at every meeting, even a one-page summary, so financial information isn't locked in one person's head. Budget the year in advance, even roughly, so spending against the plan is easy to spot when it drifts. A lot of booster clubs skip these until something goes wrong, then adopt all of them at once after an uncomfortable meeting. Building them in from day one is cheaper and a lot less stressful than rebuilding trust after a shortfall nobody can explain.
What happens when a treasurer hands off to the next person?
Handoffs are where institutional memory either survives or evaporates. A clean handoff includes the full prior year's ledger or spreadsheet, bank statements and reconciliations for at least the last 12 months, copies of the last filed 990 (whichever version), the EIN, any state charitable registration number, login credentials for the bank and any online filing accounts, and a written summary of anything unusual (a pending grant, a dispute with a vendor, an upcoming big expense). Many organizations skip this because the outgoing treasurer is exhausted and the incoming one doesn't know what to ask for. That gap is exactly how three years of missed 990 filings happens, and why auto-revocation catches so many small nonprofits by surprise. If your organization is mid-handoff right now, this is the moment to build a simple binder or shared folder, and to write down the filing deadline and login info somewhere that survives beyond one person's inbox. This is also where a State-Personalized Treasurer Kit earns its cost. A $99 one-time kit built for your state (BoosterLedger's treasurer-kit-builder) gives a new treasurer the state-specific charity registration steps, the right 990 variant to expect, and a handoff checklist already filled out, instead of starting from a blank page during the busiest month of the school year.
Does a treasurer need to worry about state rules too, more than the IRS?
Yes, and this is the part new treasurers most often miss. Many states require charitable organizations to register with a state charity office or the state attorney general before soliciting donations, separate from anything the IRS requires. If your club runs a raffle, bingo, or similar game of chance, a separate state or local raffle license usually applies, with its own application, fee, and reporting rules. These rules vary a lot by state and change periodically, so there's no single national answer here. The safe move is to confirm current requirements directly with your state's charity registration office or attorney general's office before running a fundraiser or soliciting donations, and to treat "we've always done it this way" as a starting point, not proof of current compliance.
Frequently asked questions
What does a treasurer do?
A treasurer tracks all money coming in and going out, keeps organized records (receipts, bank statements, a ledger), reconciles the bank account regularly, reports finances to the board, and handles required filings like the IRS Form 990 or 990-N. For volunteer groups, the treasurer is usually the only person with the full financial picture.
What is a treasurer?
A treasurer is the officer or volunteer responsible for an organization's money: collecting it, recording it, safeguarding it, and reporting on it. In booster clubs, PTOs, and youth sports leagues, it's typically an elected volunteer position defined by the group's bylaws, not a paid finance professional.
What do treasurers do that a regular board member doesn't?
A treasurer has direct custody or oversight of the money and the recordkeeping duty that goes with it. Other board members vote on spending and set direction, but the treasurer is the one who deposits funds, pays bills, reconciles accounts, and can answer "exactly how much do we have right now" at any moment.
What does a treasurer do in a club specifically?
A club treasurer collects dues and fundraiser proceeds, pays vendors, reimburses volunteers with receipts, tracks the budget, reports to members at meetings, and typically co-manages the bank account with at least one other signer. If the club runs raffles, the treasurer usually handles the state license paperwork too.
What is Form 990?
Form 990 is the annual information return most tax-exempt organizations file with the IRS under Internal Revenue Code Section 6033, reporting income, expenses, and activities. It keeps the exemption active and is public record. Smaller organizations often file the simplified 990-N e-Postcard instead of the full form.
What is the 990 tax form used for?
It reports a tax-exempt organization's finances to the IRS: revenue sources, program and administrative spending, board members, and sometimes compensation. It's not typically an income tax bill; it's a disclosure filing that keeps the organization's exempt status active and transparent to the public.
What happens if a treasurer never files the 990?
The IRS automatically revokes tax-exempt status after three consecutive years of failing to file the required return or notice, under Internal Revenue Code Section 6033(j). Reinstatement usually requires reapplying for exemption and paying a filing fee, and the organization owes income tax during any period it wasn't exempt.
What's the difference between Form 990, 990-EZ, and 990-N?
Generally, 990-N (the e-Postcard) fits organizations with gross receipts normally $50,000 or less, 990-EZ fits mid-size organizations under roughly $200,000 in receipts and $500,000 in assets, and the full Form 990 fits larger organizations above those thresholds. Confirm current thresholds on IRS.gov since they can change.
Does a small booster club really need to file anything with the IRS?
Yes, if it holds tax-exempt status. Even the smallest booster clubs with under $50,000 in annual receipts typically still need to file the 990-N e-Postcard every year. Skipping it for three straight years triggers automatic revocation of tax-exempt status, regardless of how small the organization is.
Who is legally responsible if the treasurer makes a mistake?
Responsibility usually sits with the treasurer for day-to-day errors, but the board as a whole typically shares fiduciary responsibility for oversight. For anything involving significant tax exposure or legal risk, confirm specifics with the IRS, your state charity office, or a licensed accountant or attorney rather than guessing.
Does the treasurer need to be a CPA or accountant?
No. Most booster club, PTO, and youth sports treasurers are volunteers with no accounting background. The job is learnable with consistent habits (monthly reconciliation, organized receipts, on-time filings). Complex questions, like unrelated business income or large restricted gifts, are worth bringing to a licensed professional.
What records should a treasurer keep, and for how long?
At minimum: bank statements, deposit records, receipts for every expense, monthly reconciliations, board financial reports, and copies of filed tax returns. The IRS recommends keeping records that support items on a return for as long as they might be needed to verify that return, often several years, so check current IRS guidance for specifics.
Do treasurers need a raffle license for fundraising events?
Often yes, if the fundraiser involves a raffle, bingo, or similar game of chance. Requirements, fees, and applications vary significantly by state and sometimes by local jurisdiction. Confirm directly with your state charity office or attorney general's office before running any raffle-style fundraiser.
Sources
- IRS, About Form 990: Form 990 is filed to provide the IRS the information required by Section 6033
- IRS, Annual electronic filing requirement for small exempt organizations (Form 990-N): 990-N generally applies to organizations with gross receipts normally $50,000 or less
- IRS, Form 990 Series which forms do exempt organizations file: Thresholds distinguishing 990-EZ and full Form 990 filers by receipts and assets
- IRS, Automatic revocation of exemption: IRS automatically revokes tax-exempt status after three consecutive years of not filing
- 26 U.S.C. Section 6033(j): Statutory basis for automatic revocation after three consecutive years of failing to file
- IRS, Applying for reinstatement of tax-exempt status after automatic revocation, Rev. Proc. 2018-15: Reinstatement generally requires reapplying for exemption after automatic revocation