What does a treasurer do? the real job, explained

Last updated 2026-07-24

what does a treasurer do?

A treasurer is the person a club, PTO, or booster organization trusts to track its money and answer for it. That's the one-sentence version. The longer version: a treasurer opens and manages the bank account, records every deposit and expense, pays bills, reimburses members, prepares a budget, reports finances at meetings, and files whatever the IRS and the state require each year. None of that is glamorous. Most of the job is data entry, filing, and saying "let's check the budget" more often than anyone wants to hear it. But the treasurer is also the person who keeps a volunteer group out of real trouble, missed tax filings, commingled funds, an IRS letter nobody expected. If you just got handed this role, the honest news is that the job is learnable in a weekend, but it's ongoing, not a one-time task. For a small booster club or PTO, one person often does all of it: bookkeeping, budgeting, tax filing, and board reporting. Larger nonprofits split these across a treasurer, a bookkeeper, and an outside accountant, but volunteer groups rarely have that luxury.

what is a treasurer, exactly?

A treasurer is an elected or appointed officer responsible for an organization's money. That includes the cash itself (bank accounts, cash boxes, payment apps) and the records that prove where it came from and where it went. In a formal nonprofit, the treasurer is usually a board officer named in the bylaws, alongside the president, vice president, and secretary. The IRS doesn't require a nonprofit to have a treasurer by that title, but it does expect "a person responsible for the organization's financial records" to exist, and most state nonprofit statutes name a treasurer-type officer as required. Check your own bylaws first; they usually spell out the exact duties and how the treasurer is chosen. A treasurer is not automatically an accountant, and taking the role doesn't require a finance degree. It requires organization, honesty, and a willingness to say no to a purchase that isn't budgeted. Bylaws sometimes require the treasurer to be bonded (a small insurance policy that protects the group if funds go missing); ask your board about this if a lot of cash moves through hands.

what do treasurers do day to day, month to month, year to year?

Daily and weekly: deposit checks and cash promptly, log every transaction, save every receipt, respond to reimbursement requests. Monthly: reconcile the bank statement against your internal records (this just means checking that your ledger and the bank's numbers match, down to the penny), report a balance and recent activity to the board, flag anything unusual. Event-based: track income and expenses for each fundraiser separately so the board can see whether a car wash or a raffle actually made money after costs. This is where a lot of booster clubs get surprised. A $2,000 raffle that cost $600 in prizes and $150 in a state raffle license fee netted $1,250, not $2,000, and the board should see both numbers. Annually: prepare or hand off the numbers for the group's tax filing (Form 990, 990-EZ, or 990-N depending on size, more on that below), present a year-end financial summary, and help incoming officers with handoff at elections. A clean handoff packet is the single biggest gift an outgoing treasurer can leave; groups that skip it are the ones that end up with duplicate bank accounts, lost passwords, and years of missing 990s discovered all at once.

what does a treasurer do in a club (general, non-nonprofit-specific)?

In a school club, hobby club, or informal group without 501(c)(3) status, the treasurer's job is smaller but the same in spirit: collect dues, pay for supplies, keep a simple ledger, and report a balance at meetings. Many school-affiliated clubs run their money through the school's own accounts rather than a separate bank account, in which case the "treasurer" role is more about tracking and requesting than actual custody of funds. Ask your school or district's activities office how club funds are held; the rules differ a lot by district. Even an informal club benefits from three habits: a written log of every transaction (date, amount, purpose, who approved it), a monthly balance report, and a rule that nobody spends money without someone else knowing about it in advance. Those three habits prevent almost every disaster a small club treasurer ever faces.

what does a club treasurer do differently from a nonprofit treasurer?

A club treasurer without formal nonprofit status mainly tracks money and reports to members. A nonprofit treasurer (a registered 501(c)(3) booster club, PTO, or similar) has extra legal duties layered on top. Those extras include filing an annual return with the IRS even if the group owes no tax ^[1], registering with the state charity office in many states before soliciting donations, following state rules for any raffle or gaming fundraiser, and keeping records that support the group's tax-exempt status if it's ever questioned. "Most tax-exempt organizations must file an annual return," the IRS states plainly on its exempt organizations pages ^[1], and "annual return" is not optional even for very small groups. If your booster club or PTO has an EIN (an IRS-issued employer identification number, basically a tax ID for the organization) and has ever applied for or received 501(c)(3) status, assume the annual filing requirement applies to you and confirm the specific form with the IRS.

what does a treasurer of a club do about money handling and controls?

Good money handling comes down to separation of duties: no single person should both collect cash and record it without anyone else checking. In a two-or-three-person volunteer group this sounds impossible, but it scales down fine. A workable small-group version: two people count event cash together and both sign a tally sheet. The treasurer deposits it and logs it, but someone else (the president or another officer) reviews the bank statement monthly, more than at year-end. Checks require two signatures over a set dollar threshold that the board picks, commonly $500 or $1,000 for volunteer groups, though there's no legal minimum; it's a policy choice your bylaws or board should set explicitly. Other habits that matter more than any software: never let cash sit in someone's car or home overnight if a same-day deposit is possible, keep a physical receipt or photo for every expense over a small dollar threshold your group sets, and require a written reimbursement form (more than a Venmo request) for anything the treasurer pays back. None of this needs to be complicated. It needs to be consistent.

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; most filers owe no tax. It's a disclosure document that keeps the group's tax-exempt status active and, for public charities, is generally available for anyone to look up. Which version you file depends on gross receipts and assets: organizations with gross receipts normally $50,000 or less can file the simplest version, Form 990-N (the "e-Postcard"); those between roughly $50,000 and $200,000 in gross receipts (and under $500,000 in total assets) typically file Form 990-EZ; larger organizations file the full Form 990 ^[2]. Private foundations file a different version, Form 990-PF, regardless of size. The IRS's own words: "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" ^[3]. Miss three years of required filings in a row and the IRS automatically revokes the organization's tax-exempt status ^[4], which is its own headache to reverse. For a full walkthrough of which version applies to your group, see form 990 and irs form 990.

what is the 990 (the short answer people actually want)?

"The 990" is shorthand for the IRS's annual reporting form for tax-exempt organizations. When someone asks "do we need to file a 990," they mean any version of it: 990-N, 990-EZ, or the full 990. The number itself refers to the form's designation in the IRS system, similar to how Form 1040 is the individual income tax return. There's no dollar threshold below which a tax-exempt organization files nothing at all; even a booster club with $500 in the bank and an EIN generally owes the 990-N at minimum, confirm the current thresholds with the IRS since they can shift ^[2]. Filing late doesn't trigger a penalty for 990-N filers specifically, but filing the 990 or 990-EZ late can carry daily penalties, and missing three consecutive years of any required 990 filing revokes exempt status automatically ^[4]. See ^[990](https://boosterledger.com/articles/treasurer-basics/990) and 990 tax form for the filing-year specifics.

what is a 990 tax form used for, practically?

Practically, the 990 tax form is how the IRS and the public check that a tax-exempt organization is doing what it claimed it would do and spending money in line with its exempt purpose. For a booster club or PTO, that means reporting total revenue (dues, fundraisers, donations), total expenses (uniforms, equipment, event costs), and a rough breakdown of program spending versus administrative costs. Banks and grantors sometimes ask to see a group's most recent 990 before opening an account or awarding a grant, so keeping filings current isn't just about the IRS; it affects the group's ability to raise money too. Most booster clubs and PTOs, being under the $50,000 gross receipts threshold, file Form 990-N, which takes maybe 10 minutes online and asks for basic identifying information, not detailed financials ^[2]. That simplicity is good news for a first-time treasurer: don't let the phrase "tax form" convince you this is an accounting project. For the specifics of that shortest version, see 990-n and form 990-n.

how does a treasurer handle a raffle, silent auction, or other regulated fundraiser?

Raffles and games of chance are regulated at the state level, not federal, and the rules vary enormously: some states require a specific license or permit before you sell a single ticket, some cap prize values, and some ban raffles by unlicensed groups entirely. Confirm the current rules with your state's charity office, attorney general, or gaming commission before running one. A treasurer's job here is to get the license (or confirm someone has), track ticket sales and prize costs separately from the general budget, and keep proof of the license and the drawing on file in case anyone asks later, a school board, a state auditor, or the IRS if the group's 990 gets a second look. Don't guess on this one. A raffle run without a required license can expose the organization, and sometimes individual officers, to fines that dwarf whatever the raffle raised.

how does a new treasurer get up to speed fast?

Start with three documents: the most recent bank statement, the most recent 990 filing (or confirmation none was filed and why), and the bylaws section describing the treasurer's duties. If any of those three is missing, that's your first task, not the budget. Next, build a simple ledger, even a spreadsheet works, with columns for date, description, category, amount, and running balance. Reconcile it against the bank statement for the last full month before you do anything else, so you know your starting point is accurate. Then check the group's exempt status directly on the IRS's Tax Exempt Organization Search tool ^[5], which is free and takes under a minute, to confirm the EIN is active and not on the automatic revocation list. Groups that skip this step sometimes discover, a year in, that they've been operating with a revoked exemption the whole time. This is the exact gap a State-Personalized Treasurer Kit is built to close: a $99 one-time packet with your state's specific raffle, registration, and filing requirements pre-organized so a first-time treasurer isn't starting from a blank page. It's not required to do the job, but it saves the research hours most new treasurers spend guessing.

what happens if a treasurer doesn't file, or an organization's status gets revoked?

If an organization fails to file any required version of Form 990 for three consecutive years, the IRS automatically revokes its tax-exempt status on the filing due date of the third year, no warning letter required ^[4]. The IRS publishes the list of revoked organizations and it's searchable online ^[5]. Revocation means the organization is treated as a taxable entity going forward and donations made to it are no longer tax-deductible, which matters a lot if parents or donors want a receipt for their taxes. Reinstatement is possible but requires an application (often Form 1023 or 1023-EZ again) and, for many small organizations, a streamlined retroactive reinstatement process if applied for within 15 months of revocation ^[4]. A treasurer inheriting a revoked or lapsed organization isn't in an unusual spot; it happens constantly in volunteer-run groups with high officer turnover. The fix is procedural, not punitive: confirm status, file what's missing, apply for reinstatement if needed, and document the timeline for the board. This is exactly the kind of project where getting specific written guidance from the IRS or a local nonprofit-focused accountant is worth the hour it takes, since reinstatement paperwork has real deadlines attached.

Frequently asked questions

What does a treasurer do in simple terms?

A treasurer tracks all the money a group takes in and spends, keeps the bank account balanced, reports to the board or members regularly, and handles required tax filings like Form 990. It's a records and accountability job, done consistently, not a one-time task.

What is a treasurer of a club responsible for?

A club treasurer collects dues or fundraiser income, pays approved expenses, keeps a written log of every transaction, and reports a running balance at meetings. In nonprofit clubs, they also handle annual IRS filings and state charity registration where required.

Is a treasurer the same as a bookkeeper?

No. A bookkeeper records transactions; a treasurer is an officer accountable to the board for the organization's overall financial health, decisions, and reporting, and often does the bookkeeping too in small volunteer groups where there's no separate staff.

What is Form 990 and who has to file it?

Form 990 is the IRS's annual information return for tax-exempt organizations. Most exempt organizations must file some version every year, per irs.gov, based on gross receipts: 990-N for the smallest, 990-EZ or full 990 for larger ones, and 990-PF for private foundations.

What is the 990 tax form used for?

It reports a tax-exempt organization's revenue, expenses, and activities to the IRS, keeping its exempt status active and letting the public verify how it spends money. Banks and grantors sometimes request a group's most recent 990 before working with it.

Does a small PTO or booster club really need to file a 990?

Yes, in almost every case if the group has an EIN and exempt status. Even groups under $50,000 in gross receipts generally must file the simplest version, Form 990-N, each year; confirm current thresholds directly with the IRS.

What happens if a treasurer forgets to file for a few years?

Missing three consecutive years of required 990 filings triggers automatic revocation of tax-exempt status by the IRS, with no advance warning. Reinstatement is possible but requires a new application and, for many small groups, a streamlined retroactive process filed within 15 months.

Does a treasurer need to be a CPA or accountant?

No. Most volunteer treasurers have no accounting background. The job needs organization, honesty, and consistent habits (reconciling monthly, keeping receipts) more than technical skill. For complex situations, consult a real accountant or the IRS directly, not a general guide.

What's the difference between a treasurer and a secretary in a club?

The treasurer handles money: deposits, payments, budgets, and filings. The secretary handles records and communication: meeting minutes, correspondence, and membership rosters. Some very small clubs combine both roles into one officer.

How does a treasurer handle raffle or fundraiser licensing?

Raffle and gaming rules are set by each state, not the IRS, so a treasurer must confirm licensing requirements with their state charity office or gaming commission before selling tickets. Requirements and fees vary widely and change, so don't assume last year's rules still apply.

What records should an outgoing treasurer hand off to the next one?

At minimum: the last bank statement, a reconciled ledger, copies of the last three years of 990 filings, the bylaws' treasurer section, any state charity registration confirmations, and login credentials for bank and payment accounts. Missing handoffs cause most of the messes new treasurers inherit.

Can a treasurer be personally liable for a group's mistakes?

It depends on the situation and state law; officers of a properly incorporated nonprofit generally have liability protection for good-faith decisions, but fraud, gross negligence, or missed legal filings can create personal exposure. Ask a local attorney about your specific state and bylaws if this concerns you.

Sources

1. IRS, Annual Filing and Forms (Exempt Organizations): Most tax-exempt organizations must file an annual return with the IRS
2. IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Gross receipts thresholds determine whether a group files Form 990-N, 990-EZ, or the full Form 990
3. IRS, Instructions for Form 990: Form 990 requirement under Internal Revenue Code section 6033
4. IRS, Automatic Revocation of Exemption: Failing to file required 990 forms for three consecutive years results in automatic revocation of tax-exempt status
5. IRS, Tax Exempt Organization Search: Public tool to confirm an organization's exempt status and check the automatic revocation list