Last updated 2026-07-25
TL;DR
A nonprofit treasurer oversees the organization's money: budgeting, bookkeeping, bank reconciliation, financial reports to the board, and making sure the right IRS Form 990 gets filed on time. BoardSource frames it as a governance role, more than data entry. In a small club or booster group, the treasurer usually does the hands-on bookkeeping too, since there's no staff accountant to hand it off to.
What does a treasurer do?
A treasurer is the board member (or, in small groups, the one volunteer) responsible for the organization's financial oversight. That means tracking cash in and out, keeping records straight, presenting numbers the board can actually understand, and making sure the group meets its legal filing obligations. BoardSource, the nonprofit governance organization that literally wrote the book on this, describes treasurer duties as working with staff or other volunteers on budgets and helping the full board understand the financial statements put in front of them, as part of the board's fiduciary oversight of finances [1]. That's the governance version. In a booster club, PTO, or youth sports league, there usually isn't a finance committee or a bookkeeper on staff. So the treasurer does both jobs: the oversight role BoardSource describes, and the actual data entry, receipt-collecting, deposit-making grind underneath it. Nobody warns you about that split when you take the job. You find out in week two when someone hands you a shoebox of receipts and a login to a bank account you didn't open. The short version: a treasurer protects the organization's money and makes its financial picture visible to the people who need to see it, board members, members, and sometimes state or federal regulators.
What is a treasurer, exactly?
A treasurer is an officer position, usually named in the bylaws, who holds legal and practical responsibility for an organization's finances. It's not an honorary title. Depending on your state's nonprofit corporation law, the treasurer may be one of the officers required by statute, along with a president and secretary. In a volunteer group, the treasurer is often the only person who can see the whole financial picture at once: what's in the bank, what's owed, what's coming in from fundraisers, what the group promised to spend on uniforms or field trips. That visibility is the actual value of the role. A good treasurer isn't necessarily an accountant. A good treasurer is organized, communicates clearly, and doesn't let two years pass without reconciling a bank statement. Most small nonprofits don't pay their treasurer. It's a volunteer post with real legal exposure if things go wrong (missed filings, commingled funds, no paper trail), which is why BoardSource and state charity regulators both push for basic financial controls even in tiny organizations [1].
What do treasurers do day to day?
The daily and monthly rhythm looks different from the big-picture governance description. Here's what it actually involves for a small nonprofit or booster group: - Deposit checks and cash promptly, ideally with a second person present or verifying the count.
- Record every transaction in a ledger or simple accounting software, categorized by fund or program.
- Reconcile the bank statement against your records every month, not every quarter.
- Pay approved bills and reimburse volunteers, keeping receipts attached to each payment.
- Prepare a financial report for board or membership meetings: cash on hand, recent income and expenses, budget-to-actual comparison.
- Track restricted funds separately if donors gave money for a specific purpose (uniforms only, a specific trip, a scholarship).
- Watch the calendar for filing deadlines: annual state charitable registration renewal, and the IRS return. In practice, the job means: don't let the board vote on a budget they can't read, and don't let six months pass without a report. For a deeper walkthrough of what filing category applies to your group, see form 990 and the simplified version most small groups actually use, 990-n.
What does a club treasurer do (versus a booster or PTO treasurer)?
A club treasurer, whether it's a hobby club, a small nonprofit, a homeowners association, or a student organization, does a scaled-down version of the same job: track dues or fundraising income, pay club expenses, report the balance to members, and keep records in case anyone asks questions later. The difference between a general "club treasurer" and a booster club or PTO treasurer usually comes down to tax status and scrutiny. A social club that never applied for 501(c)(3) status has simpler obligations (though it may still owe taxes on certain income). A booster club or PTO that operates as, or wants to be, a recognized tax-exempt organization has to deal with IRS filing requirements, state charitable solicitation registration in many states, and often school district financial policies layered on top. So "what does a treasurer of a club do" and "what does a club treasurer do" have the same practical answer at the small scale: manage the money, report it, keep receipts. But a 501(c)(3) booster treasurer carries extra weight, because the IRS and state attorney general's office are both watching for compliance, even for small dollar amounts.
What is Form 990, and does our group have to file it?
| 990-N (e-Postcard) | Smallest orgs | Gross receipts normally $50,000 or less [3] | |
|---|---|---|---|
| 990-EZ | Small/mid orgs | Gross receipts under $200,000 AND total assets under $500,000 [4] | |
| 990 (full form) | Larger orgs | Gross receipts $200,000+ or assets $500,000+ [4] | |
| 990-PF | Private foundations | All private foundations, regardless of size | Most booster clubs, PTOs, and small youth sports leagues land in the 990-N or 990-EZ range. If your group's total revenue rarely tops $50,000 in a year, the e-Postcard is probably your form, and it's genuinely a postcard: eight data fields, filed online, no paper [3]. See 990n and form-990-n for the filing walkthrough, and irs-form-990 for the full-form version if your group has grown past the small thresholds. One wrinkle: gross receipts for the 990-N test are calculated on a rolling basis (average over the current and prior two years for orgs in existence three years or more), not a strict single-year cutoff [3]. If your group had one huge fundraising year, check the calculation before assuming you're stuck on the bigger form. |
Form 990 is the annual information return that most tax-exempt organizations file with the IRS. It's not a bill; you generally don't owe tax if you're exempt, but you almost certainly owe a filing. The IRS explains that most tax-exempt organizations must file an annual return, and that failing to file for three consecutive years results in automatic revocation of tax-exempt status [2]. Which version you file depends on your gross receipts and assets: | Form | Who files it | Threshold (roughly) |
What is a 990 tax form used for?
The 990 tax form is a public disclosure document as much as a tax filing. It tells the IRS, donors, and the public what the organization brought in, what it spent, who runs it, and whether it's staying within the boundaries of its tax-exempt purpose. Because most 990s are public record, a fair number of grantmakers, sponsors, and even parents will pull your group's 990 before writing a check or agreeing to volunteer. The form covers revenue by source (donations, program fees, fundraising events), expenses by category, compensation for anyone paid over certain thresholds, and a balance sheet snapshot. For the EZ and full versions there are also questions about governance practices: does the board review the 990 before it's filed, does the org have a conflict of interest policy, and so on. See 990-tax-form for a line-by-line breakdown, and [990](/articles/treasurer-basics/990) for the general filing overview.
What is "the 990" versus "a 990"? (Common confusion)
People use "the 990" and "a 990" interchangeably, and both refer to the same IRS information return family (990-N, 990-EZ, 990, 990-PF). There's no separate document called just "the 990" that's different from the others; it's shorthand for whichever version applies to your organization's size. The confusion usually comes from conversation, not paperwork: someone says "did you file the 990?" meaning whatever version your group uses, whether that's the eight-field e-Postcard or the twelve-page full return. If someone asks whether "the 990" is due, the honest answer is: yes, some version of it, by the 15th day of the 5th month after your fiscal year ends [2]. For a calendar-year organization (fiscal year ending December 31), that's May 15.
What happens if a nonprofit doesn't file its 990?
Three consecutive years of missed filing triggers automatic revocation of federal tax-exempt status. This isn't a warning-then-penalty system; the IRS states plainly that organizations that don't file for three consecutive years "automatically lose their tax-exempt status" [5]. Reinstatement afterward means reapplying for exempt status, which can mean back to filing Form 1023 or 1023-EZ and, depending on your case, paying user fees again. The IRS maintains a searchable Tax Exempt Organization Search tool that includes organizations that have lost their exemption this way [6]. If you've just taken over as treasurer and you're not sure whether prior filings happened, checking that tool is one of the first things to do. Reinstatement options exist, including a streamlined process for smaller organizations that apply within 15 months of the revocation date, but the exact process and fees depend on your organization's size and history. Confirm the current process and user fees on the IRS's automatic revocation guidance page before assuming which path applies [5].
What financial controls should a treasurer put in place?
BoardSource and most state charity regulators point to the same handful of basics, and they cost nothing but discipline: - Two signers on the bank account, and never let the same person who writes checks also reconcile the statement.
- A written reimbursement policy: receipts required, a form, a second approver for anything over a set dollar amount.
- Monthly bank reconciliation, done and reviewed by someone other than the person doing the books.
- A simple annual budget approved by the board, plus quarterly (at minimum) budget-to-actual review.
- A document retention policy: keep bank statements, receipts, and filed returns for at least the periods your state and the IRS expect (many groups keep seven years as a safe default, though legal minimums vary).
- A clear handoff packet for the next treasurer: account logins, filing history, EIN, prior years' 990s, and the reconciliation as of the handoff date. None of this requires software or an accountant. It requires someone writing it down and a board that actually asks to see the numbers. If you want a shortcut on the paperwork side, a State-Personalized Treasurer Kit ($99, one-time) packages the state-specific raffle, registration, and filing checklists together so you're not hunting through a state website tab by tab. It's not a substitute for the controls above, just a way to skip some of the research time.
Does a booster club or PTO treasurer need to register with the state, too?
In many states, yes, separate from the IRS filing. Most states require charitable organizations that solicit donations to register with the state charity regulator (often the attorney general's office or secretary of state), and many require an annual renewal alongside financial disclosure. Requirements and thresholds differ state to state, so the safest move is confirming directly with your own state's charity registration office rather than assuming a national rule applies. Some states exempt very small organizations, or organizations that only fundraise within a single school or parent group, from registration; others don't carve out an exception at all. Because this varies so much, confirm the current threshold and registration process with your state charity office directly rather than assuming your group is too small to need it.
Where does raffle and gaming money fit into treasurer duties?
If your group runs a raffle, bingo night, or 50/50 drawing as a fundraiser, that's usually a separate legal category from ordinary donations, and most states require a specific gaming or raffle license before you sell a single ticket. Rules on prize limits, reporting, and who can sell tickets vary widely by state, and some states ban raffles for unlicensed groups outright. The treasurer (or whoever handles the money) is typically the person who has to track the license, keep separate records of ticket sales versus prize payouts, and report the results, sometimes to the state, sometimes to the IRS if prizes exceed certain values. Confirm your state's specific raffle licensing office and current rules before running one; this is exactly the kind of detail that changes by state and by year.
What should a new treasurer do in the first 30 days?
Taking over mid-year, with no clean handoff, is common in volunteer organizations. A practical first-month checklist: 1. Get the EIN, and confirm the organization's current federal tax-exempt status using the IRS's Tax Exempt Organization Search tool [6]. 2. Check the IRS's automatic revocation guidance and search tool to make sure the group hasn't already lost its exemption [5] [6]. 3. Pull the last two years of bank statements and reconcile them yourself, even if someone says it's "already done." 4. Find out what 990 version was filed last year, and when the next one is due [2] [3] [4]. 5. Confirm state charitable registration status, if applicable, with your state charity office. 6. Set up (or confirm) two signers on the bank account. 7. Write down everything you find, good or bad, and give a copy to the board president. Surprises are worse discovered in year two than reported in month one.
Frequently asked questions
What does a treasurer do?
A treasurer oversees an organization's money: tracking income and expenses, reconciling bank accounts, preparing financial reports for the board, and making sure required tax and state filings happen on time. In small nonprofits, the treasurer usually does the hands-on bookkeeping too, more than the oversight.
What is a treasurer in a nonprofit or club?
A treasurer is the officer, often required by the bylaws or state nonprofit law, responsible for financial oversight and reporting. It's a governance role with real legal exposure, not an honorary title, especially for organizations recognized as tax-exempt under IRS rules.
What is Form 990?
Form 990 is the annual information return most tax-exempt organizations file with the IRS. It reports income, expenses, and governance details, and it's public record. Missing it for three straight years triggers automatic loss of tax-exempt status, per IRS guidance.
What is a 990 tax form used for?
It reports a nonprofit's revenue, expenses, and governance practices to the IRS and the public. Donors and grantmakers often pull an organization's 990 before giving money, since it discloses compensation, program spending, and whether the board reviews the filing before it's submitted.
What is the 990, exactly?
"The 990" is shorthand for whichever version of the IRS annual return applies to your organization: 990-N for the smallest groups (generally under $50,000 in gross receipts), 990-EZ for mid-size groups, or the full Form 990 for larger organizations.
What does a club treasurer do?
A club treasurer tracks dues, fundraising income, and expenses, reports the balance to members, and keeps receipts and bank records in order. If the club is a recognized tax-exempt organization, the treasurer also handles IRS and state filing obligations.
What does a treasurer do in a club versus a booster club?
The core job is the same at small scale (track money, report it, keep records), but a booster club recognized as a 501(c)(3) carries extra obligations: IRS Form 990 filings and, in many states, charitable solicitation registration that a purely social club wouldn't have.
How often should a treasurer report to the board?
Most governance guidance recommends a financial report at every board meeting, at minimum quarterly, showing cash position, recent activity, and budget-to-actual comparison. Monthly reporting is better for organizations handling frequent cash transactions, like booster clubs running concession stands.
What happens if our nonprofit never filed a 990?
Three consecutive years of non-filing triggers automatic revocation of federal tax-exempt status under IRS rules. Reinstatement requires reapplying for exempt status and may involve back filings and fees. Check the IRS's Tax Exempt Organization Search tool and automatic revocation guidance to confirm your group's current status.
Does every nonprofit have to file the same 990 form?
No. Which version you file depends on gross receipts and total assets: 990-N for receipts generally under $50,000, 990-EZ for receipts under $200,000 and assets under $500,000, and the full Form 990 above those thresholds. Private foundations file Form 990-PF regardless of size.
Does a treasurer need to be a CPA or accountant?
No. Most volunteer treasurers aren't accountants. What matters more is organization, honesty about what you don't know, and following basic controls like two bank signers and monthly reconciliation. For complex situations, consult a qualified accountant or attorney rather than guessing.
Does a booster club need to register with the state as a charity?
Many states require organizations that solicit donations to register with a state charity office, often the attorney general, with annual renewal. Rules and small-group exemptions vary by state, so confirm current requirements directly with your state's charity registration office.
What's the deadline to file Form 990?
Generally the 15th day of the 5th month after your organization's fiscal year ends. For a calendar-year filer (year ending December 31), that's May 15. Extensions are available; confirm current deadline and extension rules on IRS.gov.
Can a treasurer also be the president or secretary of the same nonprofit?
Rules vary by state nonprofit corporation law and by the organization's own bylaws; some states or bylaws prohibit combining certain officer roles, especially treasurer and president, to preserve financial checks. Confirm your state's requirement and your bylaws before combining roles.
Sources
- BoardSource, "Financial Oversight": BoardSource's description of the treasurer's governance duties, including finance oversight and helping the board understand financial statements
- IRS, "Annual Exempt Organization Return: Due Date": 990 filing deadline is the 15th day of the 5th month after the fiscal year ends
- IRS, "Annual Electronic Filing Requirement for Small Exempt Organizations - Form 990-N (e-Postcard)": 990-N eligibility for organizations with gross receipts normally $50,000 or less, and the rolling average calculation
- IRS, "Form 990 Series Which Forms Do Exempt Organizations File": Thresholds distinguishing 990-EZ eligibility (under $200,000 receipts, under $500,000 assets) from the full Form 990
- IRS, "Automatic Revocation of Exemption": Automatic revocation occurs after three consecutive years of failing to file required returns, and streamlined reinstatement is available for eligible organizations
- IRS, "Tax Exempt Organization Search": Tool to confirm an organization's current tax-exempt status