What a booster club truck raffle teaches new treasurers

Last updated 2026-08-14

what does a treasurer do (and why does a truck raffle make it obvious)?

A treasurer keeps the books, controls the cash, and makes sure the organization files what the IRS and the state require. That's the whole job in one sentence. Everything else is detail. A raffle is a great teaching example because it compresses a full year of treasurer duties into a few weeks. Someone has to get the raffle legally licensed before a single ticket sells. Someone has to track ticket money coming in, cash and checks, sometimes from a dozen different volunteers collecting at games. Someone has to record the truck (or cash prize) as an expense or an in-kind donation, document the drawing, pay any prize taxes or withholding if required, and then report the whole thing correctly on the club's annual IRS filing. If you're a new treasurer for a booster club, PTO, or youth sports group and you searched something like "liberty lions athletic booster club 94513 2016 truck raffle," you're probably trying to understand how a specific past raffle should have been handled, or you're modeling your own raffle on one you've heard about. This article walks through the treasurer duties a raffle like that triggers, and the two areas that trip up first-year treasurers hardest: raffle licensing and IRS filing.

what is a treasurer, exactly, for a booster club or PTO?

The treasurer is the officer legally and organizationally responsible for the group's money and financial records. Not every booster club is incorporated or tax-exempt, but almost every one that handles real money (dues, concession sales, raffle tickets, sponsorship checks) needs someone in this role, whether the bylaws call it "treasurer," "financial secretary," or something else. At a minimum, a treasurer for a volunteer group like this handles: - Bank reconciliation, every month, matching the bank statement to the internal ledger.

• Cash controls: two people counting event cash, deposits made promptly, no single person handling money alone from collection to deposit.
• Recordkeeping for every fundraiser, including gross receipts, expenses, and net proceeds.
• Budget tracking against whatever the board or membership approved.
• Tax filings: the federal Form 990-series return every year, and any state-specific raffle or charitable solicitation paperwork.
• Handoff documentation, so the next treasurer isn't starting from zero. A lot of new treasurers underestimate that last one. If the person who ran a 2016 truck raffle didn't leave clean records, whoever is treasurer now is stuck reconstructing history from bank statements and memory. Weak segregation of duties (one person collecting, depositing, and reconciling cash with no second set of eyes) is a control weakness auditors flag constantly in small nonprofits, which is why groups this size lean so heavily on two-person cash counts and monthly reconciliation instead of any fancier system.

what do treasurers do differently during a raffle fundraiser?

A raffle adds three layers most bake sales and car washes don't have: state licensing, prize valuation, and (sometimes) IRS withholding on winnings. First, licensing. Most states regulate raffles as a form of gambling, and nonprofits typically need a specific raffle license or registration before selling tickets, not after. Rules vary enormously by state: some states cap the prize value, some limit how many raffles a group can run per year, some require the raffle proceeds to go mostly or entirely to charitable purposes, and some exempt small 501(c)(3) groups from licensing altogether below a certain threshold. There is no single national rule, so "confirm with your state charity office or attorney general's office" is the honest answer here, not a specific number, because it changes state to state and year to year. Second, prize valuation. A truck is a big-ticket prize, and the treasurer needs the fair market value documented, whether the truck was purchased at cost, donated by a dealership, or won through a manufacturer promotion. That value matters for the group's books (as an expense or in-kind contribution) and potentially for IRS reporting to the winner. Third, winner reporting. If a raffle prize's fair market value minus the ticket price is large enough, the organization may have federal reporting and withholding obligations to the IRS on the winnings, using forms like W-2G and, in some cases, backup withholding. IRS instructions for Form W-2G set the reporting threshold for raffle-type prizes at winnings of $600 or more where the payout is at least 300 times the wager, and backup withholding generally applies above $5,000 in net winnings . Confirm the exact figures directly with irs.gov or a qualified preparer before the raffle, not after someone wins a truck.

what does a club treasurer do when the raffle is over?

The drawing isn't the finish line. After the raffle, the treasurer still has to reconcile, report, and file. Reconciliation means matching every ticket sold against every dollar deposited, ideally with two people signing off on the count. If ticket stubs and cash don't match, that gap needs an explanation in the file, more than a shrug. Reporting means updating the group's books to show gross ticket revenue, the cost of the prize (or its donated value), any licensing fees paid to the state, and net proceeds. Boards and members should see this as a clean summary, not buried inside twelve months of bank transactions. Filing means the raffle's numbers flow into the club's annual federal tax return. This is where a lot of booster clubs get into trouble, not because the raffle itself was mishandled, but because nobody realized the club still had to file something with the IRS every single year, raffle or no raffle.

what is Form 990, and does a small booster club really have to file it?

Form 990-N (e-Postcard)	Small orgs	Gross receipts normally $50,000 or less [2]
Form 990-EZ	Mid-size orgs	Gross receipts under $200,000 and total assets under $500,000 [1]
Form 990 (full)	Larger orgs	Gross receipts $200,000 or more, or total assets $500,000 or more [1]
Form 990-PF	Private foundations	All private foundations, regardless of size [1]	Most small booster clubs and PTOs land in the 990-N or 990-EZ category most years. A single big fundraiser, like selling enough raffle tickets to fund a truck giveaway, can temporarily push a small club's gross receipts higher for that year, which can change which form applies. That's worth checking every year, not assuming based on last year's numbers. For background on the whole 990 family and how to pick the right version, see form 990 and irs form 990.

Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, activities, and governance. It's not an income tax return in the traditional sense (exempt organizations generally don't owe income tax on program activities), it's a disclosure return that keeps the IRS, and often the public, informed about how a tax-exempt group operates. The IRS instructions for Form 990 state that an organization's gross receipts and total assets determine which return in the 990 family it must file ^[1]. There isn't one universal "990"; there's a family of forms scaled to size: | Form | Who typically files it | Rough threshold |

what is the 990 tax form used for?

The 990 tax form exists so the IRS, state regulators, donors, and the public can see how a tax-exempt organization raises and spends money. It reports total revenue by source (dues, donations, fundraiser proceeds like raffle income), total expenses by category, compensation for any paid staff, and answers to governance questions (does the board review the return, does the group have a conflict-of-interest policy, and so on). For a booster club, the 990 is where that truck raffle finally shows up in the public record: gross raffle revenue, the cost of the prize, and net proceeds get reported as part of the year's total fundraising activity. Schedule G of Form 990 specifically requires organizations to report gaming and fundraising event details, including raffles, when gross revenue from those events crosses the reporting thresholds in the Schedule G instructions ^[1]. The practical reason to care: filing this every year, in the right form for the club's size, is what keeps the organization's tax-exempt status alive. For quick comparisons between the versions, see 990 tax form and ^[990](https://boosterledger.com/articles/treasurer-basics/990).

what happens if a booster club misses its 990 filing?

The IRS automatically revokes tax-exempt status if an organization fails to file the required 990-series return for three consecutive years. This is written directly into the tax code: section 6033(j) of the Internal Revenue Code requires automatic revocation for organizations that don't file for three straight years, and the IRS states plainly on its automatic revocation guidance page that "the law firmly establishes the fact that an organization's failure to file as required will result in a loss of tax-exempt status," with revocation effective automatically as of the filing due date of the third year ^[3]. This catches volunteer-run groups constantly, because treasurer turnover is high, and if three treasurers in a row assume "someone else must be filing this," the exemption disappears without anyone noticing until a bank, grant application, or school district asks for a determination letter that no longer applies. Once revoked, the organization is treated as a taxable entity going forward and drops off the IRS's list of tax-exempt organizations, and donations made after the revocation date are generally not tax-deductible until the group is reinstated ^[3]. Reinstatement is possible (there's a streamlined retroactive process for smaller organizations that qualify), but it takes paperwork, sometimes fees, and time; the IRS is not going to fix it for you, and there's no guarantee of any particular outcome or timeline. If your club's status was auto-revoked, confirm the current reinstatement procedure and any user fee directly with irs.gov before assuming what applies. For the small-organization version of this filing (the one most booster clubs and PTOs actually use most years), see 990n and form 990-n.

what does a treasurer of a club do to keep raffle records defensible?

"Defensible" is the right word, because a treasurer's records exist for the day someone asks a hard question: a new board member, a state charity regulator, an IRS letter, or a parent who wants to know where the truck raffle money actually went. A defensible raffle file usually includes: - Copy of the state raffle license or registration, with dates it covered.

• Ticket log: how many printed, how many sold, price per ticket.
• Deposit records matching ticket sales, ideally with two-person verification.
• Prize documentation: purchase invoice, or a signed donation letter if the truck was donated, showing fair market value.
• Winner information and any required tax forms (confirm current thresholds and forms with irs.gov).
• A summary sheet showing gross revenue, expenses, and net proceeds, signed off by the treasurer and one other officer. That last document, the one-page summary, is what most boards actually read. Everything else is the backup that proves the summary is true.

what a treasurer does when there's no clean handoff from a prior raffle

If you're inheriting the books after a raffle you weren't involved in, whether that's a 2016 truck raffle or last spring's cash prize drawing, don't assume the prior treasurer filed anything correctly. Pull three things immediately: the club's IRS determination letter (or confirm current status on the IRS's exempt organization search tool), the last three years of 990-series filings if they exist, and any state raffle license or charitable registration on file. If you can't find a 990 filing for one or more of the last three years, check the IRS's Tax Exempt Organization Search directly; it lets you look up whether an organization's status has been automatically revoked for non-filing ^[4]. It's a five-minute check that tells you whether you're maintaining an exempt organization or quietly rebuilding one from scratch. This is also the moment to build (or rebuild) a real financial control system: separate the person who collects cash from the person who deposits it, require two signatures on reimbursement checks over a set dollar threshold, and put a recurring calendar reminder on the 990 filing deadline (the 15th day of the 5th month after the organization's fiscal year ends, per the Form 990 instructions ^[1]).

how do state raffle rules affect a truck raffle like this?

Every state treats raffles differently, and a booster club running a truck raffle in one state may face entirely different rules than an identical club two states over. Some states require a raffle license from the state's gaming commission or attorney general's charitable division; some limit raffles to organizations that have already held 501(c)(3) or state nonprofit status for a minimum number of years; some cap total annual raffle proceeds or single-prize value; and some require a percentage of proceeds go directly to the charitable mission rather than administrative costs. Because this varies so much and changes over time, there's no responsible way to state a specific state's rule as universal. The right move for any treasurer is to contact that state's charity regulation office or attorney general's office directly and confirm current raffle licensing requirements, application deadlines, and reporting obligations before selling a single ticket. Get it in writing (an email confirmation from the state office is enough) and keep it in the raffle file alongside everything else.

getting organized without reinventing the wheel

Most of what trips up a new treasurer isn't complicated math, it's not knowing which form applies, which state office to call, or what belongs in the raffle file. A one-time reference built for your specific state, covering raffle licensing contacts and the right 990 variant for your club's size, saves a lot of guessing during your first fundraiser season. That's the gap the BoosterLedger $99 State-Personalized Treasurer Kit is built to close; check it out at /treasurer-kit-builder if you want a state-specific starting point instead of building the checklist from scratch. None of this replaces an accountant or attorney; for anything involving actual dollar amounts or a specific state's raffle law, confirm with a licensed professional.

Frequently asked questions

What does a treasurer do in a booster club or PTO?

A treasurer tracks all money in and out, reconciles the bank account monthly, keeps fundraiser records (including raffles), files the club's annual IRS Form 990-series return, and documents financial controls so no single person handles cash alone. It's a recordkeeping and compliance role, more than a bookkeeping one.

What is Form 990?

Form 990 is the annual information return most tax-exempt organizations file with the IRS to report revenue, expenses, and governance details. It comes in several versions (990-N, 990-EZ, full 990, 990-PF) based on the organization's gross receipts and asset size, per IRS instructions ^[2].

What is a 990 tax form used for?

It's used to disclose an exempt organization's financial activity to the IRS and the public, including fundraiser income like raffle proceeds, total expenses, and governance practices. Filing it correctly each year is required to keep tax-exempt status active.

Does a small booster club have to file the 990-N?

If gross receipts are normally $50,000 or less, the organization generally qualifies to file Form 990-N, the electronic postcard, instead of a longer return ^[3]. A single large fundraiser can push receipts over that line for a given year, so check annually.

What happens if a booster club never files the IRS 990 form?

Under Internal Revenue Code section 6033(j), the IRS automatically revokes tax-exempt status after three consecutive years of not filing the required return, with no additional notice given first ^[4]. Reinstatement is possible but requires a separate application and is not guaranteed.

Do we need a state license to run a truck raffle?

Almost certainly yes in most states, but the specific requirement, license type, and fee vary by state. Confirm directly with your state's charity regulation office or attorney general's office before selling tickets, since rules and thresholds change over time.

How do we value a truck given away in a raffle for our books?

Record the truck at its fair market value: the purchase price if bought, or a documented value from the donor (invoice, dealer letter, or appraisal) if donated. That value becomes part of the raffle's expense and is reported alongside gross ticket revenue on the club's books and 990 filing.

Does the raffle winner owe taxes on a truck prize?

Gambling winnings, including raffle prizes, can be taxable to the winner, and the organization may have reporting or withholding obligations depending on the prize's value relative to the ticket cost. IRS Form W-2G instructions set a $600 reporting threshold for prizes paying at least 300 times the wager, with backup withholding rules above $5,000 ^[6]. Confirm current details with irs.gov before the drawing.

What records should a treasurer keep after a raffle ends?

Keep the state raffle license, a ticket sales log, deposit records matching ticket revenue, prize purchase or donation documentation, winner information, and any tax forms filed. A one-page summary of gross revenue, expenses, and net proceeds signed by two officers ties it all together.

What's the difference between Form 990-N, 990-EZ, and full Form 990?

990-N (e-Postcard) is for organizations with gross receipts normally $50,000 or less. 990-EZ fits gross receipts under $200,000 and assets under $500,000. Full Form 990 applies above those thresholds, per current IRS instructions ^[2]. Larger, more complex clubs use the fuller forms.

How do we check if our club's tax-exempt status was already revoked?

Use the IRS Tax Exempt Organization Search tool, which lets you look up organizations that have had their exemption automatically revoked for not filing returns for three consecutive years ^[5]. It takes a few minutes and tells you exactly where the organization stands before you assume anything.

What does a club treasurer do if they inherit messy books from a past raffle?

Pull the IRS determination letter, check the last three years of 990 filings, confirm current exempt status on the IRS search tool, and locate any state raffle license on file. Rebuild missing pieces before running any new fundraiser, and set up basic controls (two-person cash counts, monthly reconciliation) going forward.

Sources

1. IRS, Instructions for Form 990 Return of Organization Exempt From Income Tax: Gross receipts and total assets determine which return in the 990 series an organization must file, including 990-EZ and full 990 thresholds, Schedule G gaming/fundraising reporting, and the filing deadline of the 15th day of the 5th month after fiscal year end
2. IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Organizations with gross receipts normally $50,000 or less may file Form 990-N
3. IRS, Automatic Revocation of Exemption: Tax-exempt status is automatically revoked under IRC section 6033(j) after three consecutive years of not filing required returns, with no prior notice-and-hearing
4. IRS, Tax Exempt Organization Search: The IRS's search tool lists organizations whose tax-exempt status was automatically revoked for non-filing
5. IRS, Instructions for Forms W-2G and 5754: Raffle-type gambling winnings of $600 or more, where the payout is at least 300 times the wager, generally trigger W-2G reporting, and backup withholding rules apply above $5,000 in net winnings
6. Internal Revenue Service: Form W-2G is used to report certain gambling winnings, including raffle prizes like a truck, which the treasurer must issue to the winner if the prize value meets IRS thresholds.
7. California Department of Justice, Office of the Attorney General: California requires nonprofit organizations to register and report on raffles conducted for charitable purposes, which affects how a booster club must organize a truck raffle fundraiser.
8. Internal Revenue Service: Fundraising activities like raffles can potentially generate unrelated business income, which is a consideration for booster club treasurers when reporting on Form 990.
9. California Penal Code Section 320.5: California Penal Code Section 320.5 establishes the legal framework governing eligibility and conduct of raffles by nonprofit organizations, directly relevant to state raffle rules affecting the truck raffle.