Last updated 2026-07-25
TL;DR
A nonprofit treasurer tracks the money coming in and going out, keeps clean records, reports account balances to the board, and makes sure the group files its yearly IRS Form 990 (or 990-N) on time. In a small booster club or PTO, that same person often also writes checks, reconciles the bank statement, and preps the budget. It's part bookkeeper, part reporter, part records clerk.
What is a treasurer?
A treasurer is the officer (elected or appointed) responsible for a nonprofit's money: tracking it, reporting on it, and keeping it safe. That's the short answer. The longer answer depends a lot on the size of the organization. In a large nonprofit with paid staff, the treasurer is often a board member who oversees a finance committee and a hired bookkeeper or accountant does the daily entries. The treasurer's job there is closer to oversight: reviewing reports, asking questions, signing off on the budget. In a booster club, PTO, or youth sports league, there's usually no paid staff at all. The treasurer IS the bookkeeper. They collect concession cash, write reimbursement checks, reconcile the bank account, and file whatever IRS forms the group owes. Most of this article focuses on that second, more common situation, since it's the one new volunteer treasurers actually walk into. The IRS doesn't define "treasurer" as a legal title with specific duties. States sometimes do, in their nonprofit corporation statutes, but the details vary. Your own bylaws are usually the real job description. If your group doesn't have a written one, that's the first gap to fix.
What does a treasurer do, day to day?
| Weekly or per-event | Deposit cash/checks from fundraisers, concessions, dues; log each deposit | |
|---|---|---|
| Weekly-ish | Pay approved invoices and reimbursements, keep receipts | |
| Monthly | Reconcile the bank statement to the checkbook/ledger | |
| Monthly or quarterly | Give a financial report at the board meeting (balance, income, expenses) | |
| Annually | Build or update the budget with the board | |
| Annually | File the IRS Form 990-series return by the deadline | |
| Annually | Renew any state charitable registration or raffle license, if applicable | |
| At turnover | Hand off records, passwords, and signing authority to the next treasurer | The reporting piece surprises a lot of new treasurers. It's not enough to keep good books quietly. The board (and often the whole membership at an annual meeting) needs to see, in plain language, how much money came in, where it went, and what's left. A one-page income-and-expense summary compared to budget, presented every meeting, prevents almost all the "where did the money go" fights that blow up volunteer boards. |
On a normal week, a volunteer treasurer is doing some mix of: depositing checks and cash, paying invoices, reconciling the bank statement against the books, and answering "how much money do we have" questions from other board members or coaches. Here's a realistic weekly-to-annual breakdown for a small booster club or PTO treasurer: | Frequency | Task |
What do treasurers do that other officers don't?
The president runs meetings and represents the group publicly. The secretary keeps minutes and official records. The treasurer is the only officer with regular hands-on access to the bank account, and that access is exactly why the role needs guardrails other officers don't need. Specific things that fall to the treasurer and basically nobody else: Signing or countersigning checks. Reconciling bank statements line by line. Tracking which fundraiser or program made money and which lost money. Filing the annual IRS return. Keeping the paper trail (receipts, invoices, deposit slips) that would let someone else reconstruct the books if the treasurer got hit by a bus tomorrow. That last point matters more than people think. A handoff-and-audits plan isn't paranoia, it's basic continuity. Booster clubs lose their tax-exempt status with some regularity specifically because a treasurer left and nobody picked up the filing duty for three years running.
What does a club treasurer do differently from a corporate treasurer?
A "club treasurer" (booster club, PTO, rec league board, alumni group) usually wears every hat: bookkeeper, budget planner, tax filer, and internal auditor, all rolled into one unpaid volunteer role that turns over every one to three years. A corporate or large-nonprofit treasurer usually oversees staff who do the transactional work, and spends more time on cash flow strategy, investment policy, and audit committee oversight. The practical difference for a booster club treasurer: there's rarely a second set of eyes. That's exactly why simple controls matter so much at this level, things like requiring two signatures on checks over a set dollar amount, having someone other than the treasurer open the bank statement each month, and never letting one person both approve and pay an expense. None of this requires software or a CPA. It requires a checklist and a board willing to enforce it. See financial-controls for the specifics on cash handling.
What is Form 990?
| Normally ≤ $50,000 | any | Form 990-N (e-Postcard) | |
|---|---|---|---|
| < $200,000 | < $500,000 | Form 990-EZ (or full 990) | |
| ≥ $200,000, or assets ≥ $500,000 | Form 990 | Those thresholds come from IRS guidance on annual filing requirements [2]; confirm current-year numbers with the IRS before you file, since the agency updates instructions periodically. See form-990 and irs-form-990 for the filing walkthrough. |
Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, and activities for the year. It's not an income tax return in the traditional sense (exempt organizations usually don't owe income tax), it's a disclosure document that keeps the IRS, and the public, informed about how the organization operates and spends money. Per the IRS, "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" [1]. Form 990 (and its shorter siblings, 990-EZ and 990-N) is public record; anyone can look up a nonprofit's recent filings. Which version you file depends on gross receipts and total assets, roughly: | Annual gross receipts | Total assets | Form to file |
What is a 990 tax form used for, exactly?
It's used to prove, publicly, that a tax-exempt organization is still operating within the bounds of its exemption, and to give the IRS the financial snapshot it needs to keep that exemption valid. Donors, grantmakers, and watchdog sites also pull Form 990 data to check on a charity before giving. The form asks for: total revenue and expenses by category, a list of officers and directors, compensation (if any), a description of the organization's main activities, and answers to compliance questions (conflicts of interest, lobbying, unrelated business income, and more depending on the version). Failing to file isn't a quiet paperwork miss. "Automatic revocation occurs when an organization does not file required Form 990-series returns for three consecutive years" [3], per IRS rules. Once revoked, the organization owes income tax on revenue it used to consider exempt, and donors can't deduct their gifts anymore. Reinstatement means an application (Form 1023 or 1024, sometimes a streamlined version) and, often, a fee. See 990-tax-form for what each line of the return is asking for.
What is the 990-N and who has to file it?
Form 990-N, sometimes called the e-Postcard, is the simplest annual filing option, meant for small organizations with gross receipts normally $50,000 or less [2]. It's an eight-question online form, not a paper document, and it takes most treasurers under ten minutes once they have the organization's EIN handy. Per IRS instructions, 990-N asks for the organization's legal name, any other names used, mailing address, website (if any), confirmation that gross receipts are still $50,000 or under, and confirmation the organization hasn't shut down [2]. There's no line for revenue detail, no balance sheet, nothing about specific expenses. The catch: 990-N still counts as "filing" for revocation purposes. Skip it three years running and the IRS revokes your exemption automatically, same as if you'd skipped a full Form 990 [3]. A lot of small booster clubs get auto-revoked simply because nobody realized 990-N is mandatory even when a full return isn't required. See 990n and form-990-n for the filing steps, and [990](/articles/treasurer-basics/990) for how the different 990 versions compare.
What does a treasurer do at a PTO or booster club specifically?
Same core job as any nonprofit treasurer, with a few things that show up constantly in this world and rarely elsewhere: concession stand cash, raffle proceeds, and fast turnover from one volunteer to the next. Concession stand and event cash is the biggest control risk most PTOs and booster clubs face. Cash changes hands fast, often across several volunteers in one shift, with no register tape. The fix isn't complicated: a cash count sheet signed by two people at open and close, a deposit made within a day or two (not "whenever someone gets to the bank"), and a rule that the person counting isn't the only person who touches the money afterward. Raffles bring their own paperwork. Most states require a specific charitable gaming or raffle license before you sell a single ticket, and the rules (who can hold one, what percentage of proceeds must go to the cause, how winners get reported) vary state to state. California, for example, requires nonprofits to register for a raffle license with the Attorney General's Registry of Charitable Trusts before conducting a raffle, and at least 90% of gross raffle receipts must go to beneficial or charitable purposes under California Penal Code section 320.5 [4]. Check with your own state's attorney general or gaming/charity office before running a raffle; don't assume last year's rules still apply, since some states change fee structures or thresholds year to year. Turnover is the other constant headache. Booster club and PTO treasurers often serve one or two years and move on. Passwords, bank signing cards, the accountant's contact info, and last year's 990 filing confirmation all need to move to the next person cleanly, in writing, not by memory.
What records should a treasurer keep, and for how long?
At minimum: bank statements, deposit slips, receipts/invoices for every expense, the year's budget versus actuals, board meeting financial reports, and a copy of every 990-series filing submitted. The IRS doesn't set one universal retention period for every document type, but IRS Publication 583 advises that businesses and exempt organizations "keep records that support an item of income or a deduction until the period of limitations for that tax return runs out" [5], which is generally three years from filing, longer if income was understated. Many nonprofits keep core financial records (bank statements, filed returns, board minutes) permanently or for seven years as a cushion beyond that legal minimum. A simple rule that works for most volunteer treasurers: keep anything tied to a tax filing for at least seven years, and keep the filings themselves, board minutes, and bylaws forever, in both a physical folder and a shared digital drive the next treasurer can access without begging for a password.
What controls should be in place so one treasurer isn't a single point of failure?
Two signatures on checks above a set dollar threshold (many small nonprofits use somewhere between $250 and $1,000, set by your own board). A second person, not the treasurer, opening and reviewing the bank statement each month. A written budget approved by the board before the year starts, with actual spending reported against it regularly. Add to that: no single person both approving an expense and cutting the check for it, a debit card locked to a low limit if the group uses one at all, and a brief annual review (doesn't have to be a full audit) by someone outside the treasurer's role, even just another board member spot-checking a sample of transactions. None of this is about distrust. It protects the treasurer as much as the organization; a documented, two-person process means nobody can accuse a volunteer of pocketing money they never touched alone. This is the kind of setup a State-Personalized Treasurer Kit is built to hand you as a checklist, so you're not reinventing controls from scratch in your first month on the job.
What happens if a nonprofit loses its tax-exempt status?
The organization owes federal income tax on its revenue going forward, donors can no longer deduct gifts, and the group's name shows up on the IRS Auto-Revocation List, which is public and searchable [6]. For a booster club funded by parent donations and concession sales, that's a real financial hit, more than paperwork embarrassment. Reinstatement is possible but takes real effort: filing the appropriate exemption application (Form 1023 or the streamlined Form 1023-EZ for smaller organizations, or Form 1024 for non-501(c)(3) groups), paying the filing fee, and in many cases filing the back 990s you missed. The IRS offers retroactive reinstatement procedures for organizations that apply within a certain window after revocation, with different requirements depending on how long it's been [3]. Confirm current procedures and fees directly with the IRS since these details get updated. The cheaper path, obviously, is never missing three years of filings in the first place. If your group already got the revocation notice, don't panic and don't guess; read the IRS's own reinstatement guidance before you file anything.
How does a treasurer report to the board and members?
At minimum, a treasurer should give a written financial report at every board meeting: current bank balance, income and expenses since the last report, and how actual spending compares to budget. Verbal-only reports ("we're doing fine, I think") are how small nonprofits end up with surprises. Many bylaws also require an annual financial report to the full membership, sometimes alongside an independent review or audit, especially once the group's budget crosses a size where your state or your own bylaws require it. Some states set audit or review thresholds tied to gross revenue for charitable organizations registered with the state; those thresholds vary, so check with your state's charity registration office or attorney general for your state's specific dollar amount. A good habit: keep the reporting format identical meeting to meeting; same categories, same layout. Board members who see the same three numbers every month (starting balance, activity, ending balance) actually retain the information. Reports that change format every time get skimmed and ignored.
Frequently asked questions
What does a treasurer do?
A treasurer tracks a nonprofit's money: deposits, expenses, bank reconciliation, budgeting, and reporting balances to the board. In small groups like PTOs and booster clubs, the treasurer also files the annual IRS return (990, 990-EZ, or 990-N) and often handles cash from fundraisers and concession stands directly, with no separate bookkeeper to lean on.
What is a treasurer?
A treasurer is the officer responsible for an organization's finances: tracking income and expenses, keeping records, and reporting to the board. The role is defined by the group's own bylaws rather than by a single federal legal definition, so exact duties vary from one nonprofit to the next.
What do treasurers do?
Treasurers deposit and disburse funds, reconcile bank statements, build and track budgets, report financials to the board regularly, and file required tax paperwork with the IRS each year. In volunteer-run groups they also usually handle physical cash handling for events, fundraisers, and dues collection personally.
What a treasurer does, in one sentence?
A treasurer keeps the books, protects the cash, and tells the board (and the IRS) the truth about where the money went, every year, on schedule.
What is Form 990?
Form 990 is the annual information return most tax-exempt organizations file with the IRS under section 6033, reporting revenue, expenses, officers, and activities [1]. It's public record. Smaller organizations may qualify to file the simpler 990-EZ or 990-N instead, depending on gross receipts and total assets.
What does a treasurer do in a club?
In a club (booster club, PTO, alumni association), the treasurer handles dues and fundraiser cash, pays approved bills, reconciles the bank account monthly, reports the club's financial position at meetings, and files the club's annual IRS return, often 990-N if gross receipts stay at or under the IRS threshold.
What does a club treasurer do that's different from a corporate treasurer?
A club treasurer usually does the hands-on bookkeeping personally, with no staff or accountant behind them, and turns over the role every year or two. A corporate treasurer typically oversees finance staff and focuses more on policy and strategy than daily transactions.
What is a 990 tax form?
It's the IRS's annual disclosure form for tax-exempt organizations, used to report finances and activities and confirm the organization still qualifies for its exemption. Despite the nickname, it's an information return, not an income tax bill, since most exempt organizations don't owe federal income tax on program revenue.
What is the 990?
"The 990" usually refers to the whole family of IRS annual returns for tax-exempt organizations: Form 990, 990-EZ, and 990-N, chosen based on the organization's gross receipts and total assets [2]. All three are public documents anyone can look up for a given nonprofit.
What does a treasurer of a club do?
The treasurer of a club manages the group's bank account, pays bills, deposits fundraiser and dues income, keeps a running budget, reports balances at meetings, and files the club's yearly IRS return so the organization keeps its tax-exempt status.
How much money should a nonprofit have before it needs a treasurer with more formal training?
There's no fixed dollar threshold in federal law. As a practical matter, once a group's annual budget passes roughly $50,000 to $200,000 (the range where 990-EZ or full 990 filing kicks in [2]), it's worth adding real bookkeeping discipline: written procedures, dual signers, and possibly outside review, even without hiring an accountant full time.
Does a small booster club really have to file anything with the IRS?
Yes. Even organizations with $50,000 or less in annual gross receipts must file Form 990-N each year to keep their tax-exempt status [2]. Skipping it for three consecutive years triggers automatic revocation [3], regardless of how small the group's budget is.
What happens if a treasurer quits without handing off records?
The next treasurer (or the whole board) may end up guessing at account balances, missing tax deadlines, or losing access to the bank account entirely. A written handoff checklist covering passwords, signing authority, filed 990s, and current records prevents this; see the handoff-and-audits hub for a full checklist.
Sources
- IRS, About Form 990: Purpose and legal basis (section 6033) of Form 990 filing
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): 990-N gross receipts threshold ($50,000 or less) and what the e-Postcard requires
- IRS, Automatic Revocation of Exemption: Three consecutive years of non-filing triggers automatic revocation of tax-exempt status
- IRS, Tax Exempt Organization Search (Auto-Revocation List): Revoked organizations appear on a public, searchable IRS list
- California Penal Code Section 320.5: California raffle registration requirement and 90% minimum proceeds rule for charitable raffles
- IRS Publication 583, Starting a Business and Keeping Records: Record retention guidance tied to the period of limitations for a tax return