Last updated 2026-07-24
TL;DR
A nonprofit treasurer tracks money in and out, keeps bank and receipt records straight, files the right IRS Form 990 variant every year, and hands clean books to the next person. For a group under $50,000 in gross receipts, that usually means the Form 990-N e-postcard, due by the 15th day of the 5th month after the fiscal year ends [1].
what does a treasurer do (the short answer)
A treasurer is the person who keeps the organization's money honest on paper. That means recording every deposit and expense, reconciling the bank statement monthly, keeping receipts long enough to survive a question from a board member or an auditor, and making sure the group files whatever it owes the IRS and the state each year. In a volunteer group, the job is smaller in dollar terms but not smaller in responsibility. A PTO with $30,000 a year and a booster club with $3 million both have a treasurer doing the same core things: track, reconcile, report, file. The difference is scale, not substance. If you just inherited this role with a shoebox of receipts and a login you're not sure works, you're not alone. Most volunteer treasurers get maybe an hour of handoff, if that. This checklist assumes you're starting from zero.
what is a treasurer, exactly, and what do treasurers do day to day
A treasurer is the officer (elected or appointed, per your bylaws) responsible for the organization's financial records and reporting. That's the formal definition. Day to day, what treasurers do breaks into four buckets: recording transactions, reconciling accounts, reporting to the board, and filing with regulators. Recording transactions means every dollar that comes in (dues, concession sales, raffle tickets, sponsorships) and every dollar that goes out (uniforms, venue rental, insurance, supplies) gets logged with a date, amount, and purpose. Spreadsheet is fine for a small group. QuickBooks or a nonprofit-specific tool makes sense once you're moving real volume or have multiple people touching money. Reconciling means matching your internal ledger against the bank statement every month, not every quarter, not "when I get around to it." Discrepancies caught in month one are a five-minute fix. Discrepancies caught in month eleven are a forensic project. Reporting to the board is usually a simple monthly or quarterly summary: cash on hand, income since last report, expenses since last report, and anything unusual (a bounced check, a grant that came in late, a vendor dispute). Filing with regulators covers the annual IRS return and, in many states, an annual charitable registration renewal with the state attorney general or secretary of state's charity office. Confirm your state's specific renewal requirement and fee with your state charity office, since these vary and change.
what does a club treasurer do differently from a nonprofit treasurer
Not much, honestly. A club treasurer (student club, hobby club, sports league) does the same four things: record, reconcile, report, file. The main difference is that a lot of clubs aren't separately incorporated or IRS-recognized as tax-exempt at all. They might operate under a school's umbrella, a parent nonprofit's umbrella, or as an unincorporated association with an EIN and a bank account but no 501(c)(3) determination letter. If your club is its own legal entity with its own EIN, it likely has its own Form 990 filing obligation, sized to its gross receipts. If it's a sub-unit of a school or a larger nonprofit, the parent organization may handle that filing, and your job is closer to internal bookkeeping. Ask directly: does this club file its own 990, or does someone else file for it? Get that answer in writing from whoever ran the group before you. A booster club treasurer specifically often deals with more moving parts than a typical school club: concession stand cash, raffle proceeds, sponsorship checks, and sometimes a state raffle license. Each of those has its own paper trail requirement, which is why cash-handling controls matter more here than in a group that only collects a $20 annual due.
what is Form 990 and why does a treasurer need to know about it
| 990-N (e-Postcard) | Gross receipts normally ≤ $50,000 | [2] | |
|---|---|---|---|
| 990-EZ | Gross receipts < $200,000 AND total assets < $500,000 | [2] | |
| 990 (full) | Gross receipts ≥ $200,000 OR total assets ≥ $500,000 | [2] | |
| 990-PF | Private foundations, regardless of size | [2] | The IRS describes the 990-N plainly: "Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N... unless they choose to file a complete Form 990 or Form 990-EZ instead" [3]. Read more on our form 990 explainer and the 990-N specific guide if you're not sure which bucket you're in. |
Form 990 is the annual information return that tax-exempt organizations file with the IRS. It's not an income tax return in the way an individual's Form 1040 is; it's a public disclosure document reporting revenue, expenses, program activities, and governance practices [1]. The IRS uses it to check that a tax-exempt organization still qualifies for exemption, and the public (donors, journalists, watchdog groups) uses it to see how a nonprofit spends its money. Which version you file depends on gross receipts and total assets: | Form | Who files it | Threshold |
what is a 990 tax form, in plain terms, for someone who's never filed one
Think of it as your organization's yearly report card to the IRS and the public. It's a 990 tax form, not a 990 tax bill: tax-exempt organizations generally don't owe income tax on money raised for their exempt purpose, so this filing is about transparency and eligibility, not a tax payment. The form asks: how much money came in, from where, how much went out, on what, who's on your board, do you have any conflicts of interest, and did you follow basic governance practices like having a written policy or two. For a 990-N, it's much thinner: legal name, EIN, tax year, address, confirmation that gross receipts are $50,000 or less, and a statement that the organization hasn't terminated [2]. The filing deadline is the same for every version: 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. Miss it three years running and the IRS auto-revokes your tax-exempt status, no warning letter required by law, though the IRS does typically send reminders. The statute is blunt about it: an organization that fails to file for three consecutive years "automatically loses its tax-exempt status" [4]. Our 990 tax form and irs form 990 pages walk through the full form-by-form breakdown if you want more detail than fits here.
what does a treasurer do when the group is small and informal
Small groups (a $5,000-a-year PTO committee, a neighborhood sports league) still need the basics: a dedicated bank account separate from any individual's personal account, a simple ledger, receipts kept for at least three years (the IRS's typical audit window, though some states require longer for charity registration records), and someone besides the treasurer who at least glances at the bank statement occasionally. Don't skip the separate bank account. Commingling club money with a personal account is the single fastest way to lose track of what's the organization's and what's yours, and it's also the first thing an auditor or a suspicious board member will ask about if money goes missing. Don't skip getting an EIN either, even for a small group. You need one to open a bank account under the organization's name, and you need one to file whatever version of the 990 applies to you. It's free and takes about 15 minutes online through the IRS [5].
the monthly treasurer checklist
Here's the routine that keeps a treasurer out of trouble, month by month: 1. Reconcile the bank statement against your ledger, every single month, no exceptions. 2. Log every deposit with its source (dues, event revenue, donation, grant). 3. Log every expense with a receipt or invoice attached. 4. Flag anything unusual for the board (a large unexpected donation, a vendor price change, a bounced check). 5. Update the running cash balance and share it with the board or at minimum the president. 6. File away receipts and bank statements in a folder (physical or digital) organized by month. Annually, add: file the correct 990 variant by the deadline, renew any state charitable registration if required, review and update your check-signing and reimbursement policies, and do a handoff-readiness check even if you're not leaving (because someone eventually will need to take over, possibly on short notice).
what does a treasurer do around cash handling and internal controls
Cash is where volunteer organizations get burned, not through malice usually, just through sloppiness. A concession stand with a cigar box and no count sheet is an invitation for money to quietly evaporate, and it's also unfair to whoever's handling that cash, because now they're a suspect by default if the numbers don't match. Basic controls that cost nothing but discipline: two people count cash at the end of any event, both sign the count sheet, deposits go to the bank within a few days (not weeks), and no single person both collects cash and reconciles the books without a second set of eyes at some point. For anything involving raffles specifically, check your state's raffle or charitable gaming license requirements before you sell a single ticket. Rules vary widely by state on licensing, prize limits, and reporting, so confirm with your state's charity office or gaming commission before running one. Write these controls down. A one-page "how we handle cash" policy that the board approves is worth more than a verbal understanding that lives only in the outgoing treasurer's head.
what a treasurer does at handoff time
This is where most volunteer organizations fall apart financially, not during the year, but in the gap between one treasurer leaving and the next one figuring out where anything is. A clean handoff needs: bank account access transferred (new signers added, old ones removed), the full prior year's ledger and bank statements, copies of the last two or three years of filed 990s, the EIN, any state registration numbers and renewal dates, login credentials for accounting software or online banking, and a written summary of any open issues (a grant that hasn't been used yet, a vendor dispute, an insurance renewal coming up). If your organization doesn't have a written handoff packet, build one this year even if you're not leaving. It costs an afternoon and it saves the next person weeks of guessing. Building that packet is exactly what a State-Personalized Treasurer Kit is meant to shortcut: a one-time $99 kit that assembles the state-specific forms, filing calendar, and handoff checklist so you're not starting from a blank page. It's a reference tool, not tax or legal advice, and it doesn't guarantee any filing outcome or tax-exempt status.
what happens if a treasurer misses a 990 filing
Miss one year, generally nothing dramatic happens beyond a possible late notice. Miss three consecutive years and the organization's tax-exempt status is automatically revoked by operation of law, effective as of the filing due date of the third year [4]. The IRS publishes an Auto-Revocation List, and once you're on it, donations to your organization are no longer tax-deductible to the donor, which is a real problem for a booster club or PTO that depends on donor write-offs. Getting reinstated involves filing Form 1023 or 1023-EZ (or 1024 for non-501(c)(3) types) again, along with any past-due 990s, and in some cases the IRS offers streamlined retroactive reinstatement for organizations that file within 15 months of revocation and meet other conditions described in Revenue Procedure 2014-11 [6]. It's not fast and it's not free (the 1023-EZ filing fee is currently $275, subject to change ), so the cheapest fix by far is just filing on time every year.
Frequently asked questions
What does a treasurer do in a club or booster organization?
A club treasurer tracks all money coming in and going out, reconciles the bank account monthly, reports a simple summary to the board, and files whatever IRS return and state registration the organization owes each year. In booster clubs specifically, that often includes concession cash counts and raffle proceeds tracking.
What is Form 990 in simple terms?
Form 990 is the annual public information return tax-exempt organizations file with the IRS reporting revenue, expenses, and governance details. It's not an income tax bill; it's a disclosure filing that keeps an organization's tax-exempt status active and lets donors and the public see how money was used [2].
What is the 990-N e-Postcard and who has to file it?
Form 990-N is the shortest 990 variant, for organizations with gross receipts normally $50,000 or less. It asks only for basic identifying information and a confirmation of receipts, filed electronically through the IRS website, with no paper option [1][3].
When is Form 990 due each year?
The 15th day of the 5th month after your fiscal year ends. For a calendar-year organization, that's May 15 [1]. This deadline applies to all 990 variants (990-N, 990-EZ, 990, and 990-PF), though the amount of information required differs sharply by version.
What happens if my nonprofit doesn't file a 990 for three years?
The organization's tax-exempt status is automatically revoked by law after three consecutive missed years, with no separate IRS notice required to trigger it [4]. Reinstatement requires re-filing for exemption and often the past-due returns, plus a filing fee, so it's far cheaper to file every year on time.
Do small PTOs and booster clubs really need to file anything with the IRS?
Yes, if the organization has its own EIN and is recognized (or should be recognized) as tax-exempt, it owes an annual 990 filing regardless of size. Even a group with $2,000 in gross receipts still normally must file the 990-N e-Postcard [1].
What's the difference between a treasurer and a bookkeeper in a nonprofit?
A bookkeeper records transactions; a treasurer does that plus takes responsibility for reporting to the board, ensuring filings happen, and often signing off on internal controls. In small volunteer organizations, one person usually does both jobs, but the treasurer title carries the accountability.
How long should a treasurer keep receipts and bank statements?
A common baseline is at least three years, matching the IRS's typical audit window, though some states require longer retention for charitable registration records. When in doubt, keep seven years of financial records and permanent copies of filed 990s, EIN confirmation, and formation documents.
Does a nonprofit treasurer need to be a CPA or accountant?
No. Most volunteer treasurers aren't accountants, and the role doesn't legally require one. It does require basic bookkeeping discipline (monthly reconciliation, organized receipts) and a willingness to ask the IRS, state charity office, or a real accountant when something's genuinely unclear.
What is a raffle license and does a treasurer need to get one?
Many states require a specific license or registration before a nonprofit can legally run a raffle, with rules on prize value, ticket sales, and reporting that vary widely. Confirm your state's specific requirement with your state's gaming commission or attorney general's charity office before selling any tickets.
What does the treasurer of a club actually sign or approve?
Typically checks or electronic payments above a threshold set by the bylaws, the monthly or quarterly financial report to the board, and the annual 990 filing (though a board officer or outside preparer may also review or sign). Exact signing authority depends on your organization's bylaws and bank signature card.
Can one person be both president and treasurer of a small nonprofit?
Bylaws and state nonprofit corporation law govern this, and it varies; some states or bylaws prohibit combining check-signing and approval roles in one person as a basic internal control. Even where it's legally allowed, most practitioners recommend against it because it removes the second set of eyes on money.
Sources
- IRS, Annual Exempt Organization Return: Due Date: 990 filing deadline is the 15th day of the 5th month after fiscal year end, and 990-N thresholds
- IRS, Form 990 Resources and Tools: Form 990 is the annual information return reporting revenue, expenses, and governance for tax-exempt organizations
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): quoted description of who must file the 990-N e-Postcard
- IRS, Automatic Revocation of Exemption: organizations that fail to file for three consecutive years automatically lose tax-exempt status
- IRS, Apply for an Employer Identification Number (EIN) Online: EIN application is free and available online
- IRS, Revenue Procedure 2014-11: streamlined retroactive reinstatement procedures after automatic revocation