Last updated 2026-07-25
TL;DR
A treasurer tracks every dollar in and out, keeps receipts and bank statements matched, files the group's Form 990 or 990-N with the IRS each year, and hands over clean records to the next person. It's bookkeeping plus accountability, not tax law. Most of the job is habits: log it, file it, don't touch cash alone.
What does a treasurer do?
A treasurer is the person who tracks the money for a club, PTO, or booster organization and answers for where it went. That's the whole job in one sentence. Everything else is detail. In practice it breaks into four buckets: recording income and expenses, keeping the bank account reconciled against receipts, filing whatever the IRS and state require each year, and reporting back to the board or membership so nobody is guessing about the balance. Some groups add a fifth job: writing the budget for the coming season. Nobody hands you a manual when you take this on. Most treasurers inherit a shoebox, a login they have to reset, and a vague sense that something is due to the IRS soon. That's normal. The job is learnable in a weekend if you're organized, and it's a slow-motion disaster if you're not, because the IRS auto-revokes tax-exempt status for organizations that skip three years of required filings in a row [1]. If your group already has an EIN and has filed before, your first task is figuring out what was filed last year and when the next one is due. If nobody knows, start with the [990](/articles/treasurer-basics/990) lookup tools and go from there.
What is a treasurer, exactly?
A treasurer is an officer, usually elected or appointed by a board, who has legal and practical responsibility for an organization's money. The role exists in for-profit boards, nonprofits, unions, and volunteer groups alike, but the booster-club and PTO version is almost always unpaid and almost always inherited mid-year with incomplete records. Most state nonprofit corporation statutes name the treasurer (or an equivalent officer) as required or customary, though wording varies. Some states just require a person be designated to keep financial records; others are silent and leave it to bylaws. Check your organization's bylaws first. They usually spell out term length, whether you need board approval for spending over a certain dollar amount, and whether you're required to present financial reports at every meeting. A treasurer is not automatically an accountant, a bookkeeper, or a tax preparer, and taking the job doesn't make you legally liable for the group's tax status the way a paid CPA would be. But you are the person who signs (or is responsible for) the Form 990-series filing, and a pattern of missed filings can cost the group its tax-exempt status, which is a real and disruptive problem for a small booster club, more than paperwork [1].
What do treasurers do day to day, week to week, month to month?
Day to day: log every deposit and expense the same day, or the same week at the latest, in a shared spreadsheet or accounting tool. Keep every receipt, either physical in an envelope or a photo in a folder. Week to week: reconcile against the bank account. This means literally checking that every transaction in your ledger matches a transaction on the bank statement, and every bank transaction has a matching entry in your ledger. If they don't match, find out why before the gap grows. Month to month: report a simple summary to the board. Starting balance, income, expenses, ending balance. Most boards want this at every meeting, more than annually. Annually: file whatever's required. For most small booster clubs and PTOs with gross receipts normally $50,000 or less, that's the Form 990-N electronic postcard, filed through the IRS's own portal, not a paper form [2]. Larger groups file Form 990-EZ or the full Form 990 depending on gross receipts and total assets [3]. Whatever your state requires for charitable registration is separate from the IRS filing and due on its own schedule, so track both. Seasonally, if your group runs a raffle, that needs its own state license application, usually well before the event date, filed with your state's charity regulator or gaming commission. Rules and deadlines vary by state, so confirm with your state charity office before you sell a single ticket.
What is Form 990?
Form 990 is the annual information return that most tax-exempt organizations file with the IRS. The IRS describes it plainly: organizations exempt from income tax under section 501(a) must file an annual information return, with Form 990 being the standard version for larger organizations, and it "provides the public with financial information about a nonprofit organization" [3]. It's not a tax bill. Most small nonprofits owe nothing when they file it. It's a disclosure document. The public, including donors and watchdog groups, can look up any nonprofit's 990 to see revenue, expenses, and who's on the board. There are four versions depending on size: Form 990-N (the electronic postcard, for gross receipts normally $50,000 or less), Form 990-EZ (gross receipts under $200,000 and total assets under $500,000), the full Form 990 (above those thresholds), and Form 990-PF for private foundations [3][4]. Almost every booster club and PTO reading this files either 990-N or 990-EZ. Get familiar with the form 990 requirements and the 990-N threshold specifically, since that's the one most small booster groups actually use. If you're not sure which version applies, the 990 tax form overview walks through the size thresholds in plain terms.
What is a 990 tax form and why does a small club need one?
A 990 tax form is how a tax-exempt organization tells the IRS (and the public) it's still operating, still exempt, and roughly how much money moved through it in the year. Even organizations with $0 in revenue for the year generally still need to file something, usually the 990-N, to stay in good standing. Here's the part that trips up new treasurers: filing isn't optional just because the group is small or informal. The IRS states that organizations that fail to file for three consecutive years automatically lose their tax-exempt status, "by operation of law," and that revocation is posted on the IRS's Tax Exempt Organization Search tool [1]. Getting that status back means re-applying, sometimes with retroactive reinstatement available, sometimes not, and it can take real money and real time. If your predecessor treasurer went quiet for two years and you're not sure the filings happened, check the IRS's exempt organization search before you assume everything is fine. It's a five-minute check that can save you a multi-month reinstatement process.
What is the 990, in plain terms?
The 990 is the IRS's name for the whole family of annual information returns nonprofits file. When people ask "what is the 990," they usually mean the general concept: the yearly filing that keeps a tax-exempt group in the IRS's good graces and searchable in public databases. Think of it as the nonprofit equivalent of an annual report crossed with a compliance check-in. It reports revenue, expenses, program activities, and (for the EZ and full versions) officer names and compensation. Form 990-N, the version most boosters and PTOs use, is much shorter: eight basic pieces of information including the organization's legal name, EIN, tax year, and confirmation that gross receipts are $50,000 or less [2]. The form doesn't change your organization's exempt status by itself. It's the *failure* to file it, three years running, that triggers automatic revocation [1]. File it every year, even in a slow year, even if you're new and unsure, and you avoid that entire problem. For a side-by-side of which version applies at which revenue level, see irs form 990 or the shorter form 990-n breakdown.
What does a treasurer do in a club or booster organization specifically?
In a booster club, PTO, or youth-sports league, the treasurer's job leans heavier on cash handling than a typical nonprofit treasurer's does, because so much of the money comes in as cash at concession stands, car washes, and gate admissions. That means the club treasurer's specific responsibilities usually include: setting up a two-person count for any cash box at the end of an event, depositing cash within a day or two rather than holding it, keeping a simple ledger separate from personal accounts (never mix booster funds with a coach's or parent's personal checking account), and reconciling monthly against the bank statement. It also means managing the raffle or 50/50 draw if the group runs one, which usually requires a state gaming or charity license obtained in advance, not after tickets go on sale. Confirm the license timeline with your state's charity regulator, since some states require applications 30 to 60 days before the event and others have different windows entirely. A club treasurer typically also: writes or updates a simple reimbursement policy (receipts required, board approval above a set dollar threshold), keeps a signer list current at the bank (remove departed officers promptly), and prepares a handoff packet for whoever takes the job next season, because turnover in these roles is constant and undocumented handoffs are how organizations end up filing late or not at all.
What does a club treasurer do that's different from a corporate treasurer?
| Primary tool | Treasury management system | Spreadsheet or basic bookkeeping app | |
|---|---|---|---|
| Filing | SEC and complex tax filings | Form 990-N or 990-EZ [3] | |
| Cash handling | Bank-to-bank wires | Physical cash boxes at events | |
| Term length | Multi-year, professional | Usually 1 school year, volunteer | |
| Biggest risk | Investment or liquidity risk | Missed filing deadline, commingled funds | If you're coming from a corporate finance background and volunteering for a PTO, the finance skills transfer, but the compliance calendar is completely different, and smaller, in dollar terms. |
A corporate treasurer manages large cash reserves, debt, and investment strategy. A club treasurer manages small cash reserves, a checking account, and compliance paperwork. The titles overlap, the jobs barely do. The most useful comparison is scale and formality. A booster club treasurer is closer to a part-time bookkeeper with a compliance calendar than to a finance executive. The core skills that actually matter are: basic spreadsheet or ledger literacy, the discipline to reconcile monthly instead of yearly, and knowing which IRS form applies to your gross receipts level. | Task | Corporate treasurer | Booster/PTO treasurer |
How do treasurers set up basic financial controls?
Financial controls sound formal, but for a volunteer treasurer they boil down to a short list of habits that prevent both fraud and honest mistakes. Require two signers on the bank account, and require two people to count cash at the end of any event before it's deposited. Never let one person collect, count, and deposit cash alone, not because anyone's assumed dishonest, but because mistakes and disputes are much easier to resolve with two sets of eyes from the start. Reconcile the bank statement every month, not every quarter and not once a year at tax time. A gap you catch in month one is a five-minute fix. A gap you catch in month eleven is a forensic project. Keep a written reimbursement policy: receipts required, a dollar threshold above which the board must pre-approve spending, and a simple form for anyone requesting money back. Keep the organization's money in its own bank account, under its own EIN, never in a personal or coach's account, even temporarily. Build a handoff folder from day one: bylaws, EIN letter, last three years of filings, bank statements, signer list, and a one-page "how we do things" memo for whoever takes over next. A /treasurer-kit-builder built around your specific state's raffle and filing rules can save a new treasurer the hours of googling that otherwise go into figuring out what applies where you live, though plenty of treasurers build this folder themselves for free with the IRS's own guidance.
What happens if a treasurer misses a filing deadline?
Nothing catastrophic happens after missing one year. The real risk kicks in at three consecutive years missed, when the IRS automatically revokes the organization's tax-exempt status "by operation of law" [1]. There's no warning letter that says "this is your final notice" in most cases; the revocation is automatic once the third year passes. Once revoked, the organization is off the IRS's list of tax-exempt entities, which means donations made to it may no longer be tax-deductible for donors, and the group may owe corporate income tax on funds raised going forward until reinstated. Reinstatement means filing Form 1023 or 1023-EZ (for smaller groups) again, along with the delinquent returns, and sometimes paying a filing fee. Organizations that apply within 15 months of the revocation date and meet other conditions may qualify for streamlined retroactive reinstatement under IRS Revenue Procedure 2014-11 [5]. The fix, if you discover a lapse, is to check the IRS Tax Exempt Organization Search tool immediately to confirm the group's current status, then follow the reinstatement procedure that matches how long the lapse has run. Don't guess. Don't assume it's fine because nobody complained. The search tool takes two minutes and tells you the truth.
What should a new treasurer do in the first 30 days?
Get the login credentials for the bank account and any online filing accounts, and confirm you're a listed signer at the bank. If you're not on the signature card yet, that's step one, in person, with photo ID and whatever board resolution your bank requires. Pull the last two to three years of filings. Check the IRS Tax Exempt Organization Search to confirm current status hasn't lapsed [1]. Find the EIN (it's on old filings, old bank paperwork, or you can call the IRS Business & Specialty Tax Line if truly lost). Set a recurring calendar reminder for the 990 deadline: it's due the 15th day of the 5th month after your fiscal year ends, so a June 30 fiscal year-end means a November 15 deadline [3]. Read your bylaws cover to cover once. Ask the outgoing treasurer for a walkthrough, even a 20-minute phone call, before they disappear for the summer. Finally, set up (or confirm) the reconciliation habit: one hour a month, same week every month, matching ledger to bank statement. That single habit prevents 90% of the messes new treasurers inherit.
Do treasurers need accounting or legal training?
No formal credential is required to be a volunteer club or PTO treasurer. Most are parents, coaches, or community members with no accounting background who learn the specific tools (a spreadsheet, maybe QuickBooks or Wave, the IRS e-Postcard system) as they go. That said, the job does require comfort with basic arithmetic, patience for repetitive record-keeping, and the discipline to not skip the boring monthly reconciliation step. If your group's finances are complex (six figures in revenue, employees, significant investments), it's worth bringing in a real accountant or CPA for at least an annual review, even if the day-to-day treasurer role stays volunteer. This article and BoosterLedger generally are not accountants or a law firm, and nothing here is tax or legal advice. IRS rules and state charity and raffle rules change and vary by state, so confirm specifics with the IRS and your state's charity office or attorney general before you file anything or run a licensed raffle.
Frequently asked questions
What does a treasurer do?
A treasurer tracks all money coming in and going out of an organization, reconciles the bank account monthly, files required IRS and state paperwork (like Form 990-N or 990-EZ), and reports the financial position to the board regularly. For clubs and PTOs, it also usually means managing event cash handling and raffle compliance.
What is a treasurer?
A treasurer is the officer responsible for an organization's money: recording it, safeguarding it, and reporting on it. In booster clubs, PTOs, and youth sports leagues, it's almost always an unpaid, elected or appointed volunteer role, distinct from a paid bookkeeper or accountant, though the tasks overlap.
What is Form 990?
Form 990 is the IRS's annual information return for tax-exempt organizations. It discloses revenue, expenses, and governance details to the public. Smaller organizations file shorter versions: Form 990-N for gross receipts normally $50,000 or less, and Form 990-EZ for gross receipts under $200,000 and assets under $500,000 [3][4].
What is the 990 tax form used for?
It's used to report a nonprofit's annual financial activity to the IRS and keep its tax-exempt status current. It's not a tax bill for most small groups; it's a disclosure and compliance filing. Skipping it for three straight years triggers automatic revocation of exempt status under IRS rules [1].
What does a club treasurer do differently from other officers?
Unlike the president or secretary, the treasurer is the sole officer with hands-on responsibility for cash, bank accounts, receipts, and filings. Other officers set direction and keep minutes; the treasurer is the one who can tell you, at any moment, exactly how much money the club has and where it came from.
How often should a treasurer report to the board?
Most bylaws expect a treasurer's report at every board meeting, typically monthly, showing starting balance, income, expenses, and ending balance. Even without a bylaw requirement, monthly reporting catches errors early and builds trust with parents and members who want to see where dues and fundraising money went.
Does a small PTO or booster club really need to file with the IRS every year?
Yes. Even organizations with no income for the year generally still need to file, usually Form 990-N, to avoid the automatic loss of tax-exempt status after three consecutive missed years [1][2]. There is no minimum-revenue exception that removes the filing requirement entirely.
What happens if my organization's tax-exempt status was already revoked?
Check the IRS Tax Exempt Organization Search tool to confirm the revocation date, then apply for reinstatement using Form 1023 or 1023-EZ. Organizations that apply within 15 months of revocation may qualify for streamlined retroactive reinstatement under IRS Revenue Procedure 2014-11 [5]. Confirm current requirements with the IRS directly.
Can a treasurer be personally liable for club money problems?
Volunteer treasurers generally aren't personally liable for the organization's tax debts or lost exempt status just by holding the title, but liability can attach in cases of fraud, gross negligence, or breach of fiduciary duty depending on state law and bylaws. This isn't legal advice; consult an attorney for your specific situation.
How does a treasurer handle raffle or 50/50 fundraiser money?
Most states require a specific charitable gaming or raffle license obtained in advance, separate from your federal tax-exempt status, before you can legally sell tickets. Rules on eligible organizations, prize limits, and reporting vary widely by state, so confirm with your state charity office or gaming regulator well before your event date.
What records should a treasurer keep and for how long?
Keep bank statements, receipts, board-approved budgets, and filed tax returns for at least the period the IRS can examine a return, generally three years, though many treasurers keep seven years of records as a safer standard, and permanent records like the EIN letter and bylaws indefinitely.
How does a new treasurer find the organization's EIN if it's lost?
Check old bank statements, prior-year tax filings, or the IRS's Tax Exempt Organization Search tool, which lists EINs for registered exempt organizations. If none of those work, the IRS Business & Specialty Tax Line can help verify an existing EIN over the phone for an authorized officer.
What's the difference between a treasurer and a bookkeeper?
A bookkeeper records transactions; a treasurer is accountable for the whole financial picture, including reporting to the board, ensuring filings happen, and setting or enforcing spending controls. In a small club, one volunteer often does both jobs, but the treasurer title carries the compliance responsibility.
Sources
- IRS, Automatic Revocation of Exemption: Organizations that fail to file required returns for three consecutive years automatically lose tax-exempt status by operation of law
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations Form 990-N (e-Postcard): Organizations with gross receipts normally $50,000 or less file Form 990-N and it requires eight basic items of information
- IRS, Form 990 Series Which Forms Do Exempt Organizations File: Form 990 provides the public with financial information about a nonprofit and filing thresholds determine which version (990-N, 990-EZ, 990) applies; return due 15th day of 5th month after fiscal year end
- IRS, About Form 990-EZ: Form 990-EZ is for organizations with gross receipts under $200,000 and total assets under $500,000
- IRS Revenue Procedure 2014-11: Organizations applying for reinstatement within 15 months of revocation may qualify for streamlined retroactive reinstatement
- IRS, Exempt Organizations Select Check (Tax Exempt Organization Search): Revocations are posted on the IRS's Tax Exempt Organization Search tool, which treasurers can use to confirm current exempt status