Nonprofit treasurer interview questions: what boards should ask

Last updated 2026-07-25

What does a treasurer do, exactly?

A nonprofit or club treasurer keeps the money honest. That means tracking every dollar in and out, reconciling the bank statement every month, keeping receipts organized enough that a stranger could follow them, and making sure the group files whatever the IRS requires each year. In a booster club or PTO, the treasurer usually also builds the annual budget, reports balances at every meeting, manages fundraiser cash (concession stands, raffles, car washes), and signs or co-signs checks. Some groups also expect the treasurer to handle payroll for a part-time coach or coordinator, which adds payroll tax filing to the list. The job is part bookkeeper, part internal auditor, part translator. Boards don't need spreadsheets; they need someone who can say "we have $4,200 in the concession account and $1,100 is earmarked for uniforms" in one sentence. That's the real skill you're interviewing for, more than data entry. If you're building the interview from scratch, it helps to separate the job into three buckets: recordkeeping (books, receipts, reconciliation), compliance (990 filings, state registration, sales tax if applicable), and communication (budget reports, answering board questions, flagging problems early). Good candidates will have something to say about all three without prompting.

What is a treasurer? (the short definition)

A treasurer is the officer responsible for an organization's money: recording transactions, protecting cash, and reporting the financial picture to the board or membership. In a nonprofit, the treasurer often also owns the relationship with the IRS filing requirement, even if a bookkeeper or accountant does the mechanics. Legally, the treasurer is usually named in the bylaws as one of the required officers (president, secretary, treasurer is the common trio). Some state nonprofit corporation laws require at least this minimum slate of officers or something functionally equivalent; check your state's nonprofit corporation statute or your own bylaws for the exact requirement, since this varies by state. California's Nonprofit Public Benefit Corporation Law, for example, requires a corporation to have "a chairperson of the board or a president or both, a secretary, a treasurer or a chief financial officer or both" (California Corporations Code section 5213) ^[1]. For a small club, "treasurer" often means one volunteer doing everything: opening the mail, making bank deposits, paying the vendor invoice, and filing the annual return. For a larger nonprofit with staff, the treasurer is more of a board-level financial overseer while a staff bookkeeper does daily entries. Know which version you're hiring or electing before you write your interview questions, because the skill set is different.

What do treasurers do day to day, week to week, year to year?

Day to day: approve or record small purchases, deposit checks and cash from fundraisers, answer "can we afford this" questions from other officers. Week to week: reconcile any new transactions against receipts, update the ledger or accounting software, follow up on outstanding invoices or reimbursement requests. Month to month: full bank reconciliation, a written or verbal treasurer's report to the board, review of the budget versus actual spending. Year to year: close the books for the fiscal year, prepare or hand off information for the ^[990](/articles/treasurer-basics/990) or 990-N filing, help build next year's budget, and if there's a leadership change, do a proper handoff to the incoming treasurer with all records and passwords. A useful interview probe is simply: "Walk me through your last 30 days if you were treasurer right now." A candidate with real experience will describe this rhythm naturally. Someone without bookkeeping background will talk in vague terms about "keeping track of things," which is a signal you'll need to pair them with training or a co-treasurer.

What does a club treasurer do differently from a corporate one?

A club treasurer (booster club, PTO, youth sports league) usually handles cash in a way a corporate finance officer never does: literal bills and coins from a concession stand, a raffle table, or a car wash, often on a Friday night with no bank branch open for two days. That means the club treasurer's core skill isn't spreadsheets, it's cash control discipline: two people counting the box together, a deposit slip signed by both, and a same-week trip to the bank. Ask candidates directly how they'd handle a $600 cash box from a Friday night game when the bank doesn't open until Monday. If they don't mention a second counter, a locked bag, or documented count, that's a real gap to address before they start. Club treasurers also deal more with state raffle licensing and small-dollar sales tax questions than a typical 501(c)(3) treasurer at a bigger nonprofit. If your group runs raffles, ask whether the candidate has ever pulled a state raffle or gaming license, since requirements and fees vary widely by state; confirm current rules with your state's attorney general or gaming/charity office before running any raffle. Finally, club treasurers report to volunteer parent boards, not a professional finance committee. That means the report has to be plain-English and short. A good club treasurer says "we have $3,800, spending is on track for uniforms in March" instead of reciting a trial balance line by line.

What is Form 990, and why does the interview need to cover it?

Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, and activities. It is not an income tax return in the traditional sense (most 501(c)(3) organizations owe no income tax), but it is how the IRS and the public see what the organization did with its money. As the IRS states, "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" ^[2]. There are several versions depending on size: the full Form 990, the shorter 990-EZ, and the 990-N e-Postcard for the smallest organizations. Whoever holds the treasurer role in your group needs to know, at minimum, which version your organization files and when it's due (the 15th day of the 5th month after the fiscal year ends, for most calendar-year filers that's May 15) ^[3]. Ask every candidate: "Do you know if we file the 990, 990-EZ, or 990-N, and when is it due?" If they don't know and haven't asked, that's fine for a brand-new volunteer, but flag it as the first thing to teach. Missing three years of required 990 filings in a row triggers automatic revocation of tax-exempt status under the Pension Protection Act of 2006, and the IRS confirms that organizations that don't file "for three consecutive years" automatically lose their exempt status ^[4]. Recovering it means reapplying, which can mean real cost and real delay. This single fact is worth putting on page one of any treasurer onboarding packet.

What is a 990 tax form, in plain terms?

Normally $50,000 or less	990-N (e-Postcard)
Gross receipts under $200,000 and total assets under $500,000	990-EZ (or full 990)
Gross receipts $200,000 or more, or assets $500,000 or more	Full Form 990	Confirm your organization's exact thresholds and any recent updates with the IRS or a qualified preparer, since these figures come from IRS guidance and can shift over time [5]. This is not tax advice; it's a starting map for the interview conversation, not a final answer for your specific group.

Think of it as the nonprofit's public report card: revenue, expenses, program spending, salaries over a certain threshold, and a description of what the organization actually did that year. The IRS uses it to check that a tax-exempt group is still operating within its exempt purpose; the public (donors, watchdog sites, journalists) uses it to see if the money is going where it's supposed to. The form itself is filed annually, not one time. A common misconception among first-time treasurers is that the initial IRS exemption application (Form 1023 or 1023-EZ) is the only paperwork ever needed. It isn't. The 990 (in whichever version fits your size) is due every single year the organization exists, on time, indefinitely. Here's the size breakdown that determines which version applies, based on IRS filing thresholds ^[5]: | Gross receipts (annual) | Which form usually applies |

What questions should you ask a treasurer candidate about money handling?

These are the practical, scenario-based questions that reveal more than a resume ever will. 1. Walk me through how you'd reconcile our bank statement against our ledger this month. 2. If cash comes in from a fundraiser, who counts it, and how many people need to sign off before it's deposited? 3. Have you ever caught a discrepancy in the books? What did you do about it? 4. Do you know whether we currently file the ^[990](/articles/treasurer-basics/990), 990-EZ, or 990-N? If not, how would you find out? 5. What would you do if you discovered the prior treasurer hadn't filed the 990 for two years? 6. How would you build a budget for next year if you had last year's actual spending in front of you? 7. What software or system have you used for bookkeeping? (QuickBooks, Wave, a spreadsheet, something else?) 8. Are you comfortable being one of two signers on the bank account, with no single-signer authority over a certain dollar amount? 9. How would you document a reimbursement request from a coach or coordinator? 10. If our state requires a raffle license, would you know where to start looking for it? The goal is not to trap anyone. It's to see whether the candidate thinks in terms of controls (two people, documentation, reconciliation) or in terms of trust alone ("I'll just keep track of it"). Trust is not a control. Every functioning nonprofit financial system assumes good people can still make honest mistakes, or that records need to survive a leadership change intact.

What questions should you ask about IRS and compliance knowledge?

You are not hiring a CPA, so don't expect textbook answers. You are checking whether the candidate knows what they don't know and will ask for help. Good questions: - Have you ever dealt with an organization losing tax-exempt status, or heard of it happening?

• What's the deadline for our annual IRS filing, and what happens if we miss it?
• Would you know how to check our organization's exemption status on the IRS website?
• If our state requires charity registration or annual reporting separate from the IRS, do you know where to check?
• Would you be comfortable working with an accountant or bookkeeper if the board hires one, rather than doing everything solo? A candidate who says "I don't know the deadline off the top of my head, but I'd check the IRS site and calendar it immediately" is often a better hire than one who bluffs an answer. Compliance knowledge can be taught in a weekend; a habit of guessing under pressure is harder to fix. Note that state charity registration is a separate system from the IRS. Many states require nonprofits that solicit donations to register with the attorney general's office or a state charity bureau, with its own annual renewal and its own deadlines. Confirm the specific requirement with your state's charity official or attorney general's office; this varies by state and by how the organization raises money.

What red flags should disqualify a treasurer candidate?

A few answers should give any nominating committee real pause. First, refusing any oversight. "I'll just handle it myself, you don't need to see the books" is the single biggest red flag in a nonprofit treasurer interview. Every treasurer, no matter how trusted, should expect a second set of eyes: a co-signer, a monthly report, an annual review. If a candidate resists that structure, that's not confidence, that's a control gap waiting to happen. Second, no plan for handoff. Ask what happens to the records if they get hit by a bus tomorrow, or just move away. If the honest answer is "it's all on my personal laptop and nobody else has access," that's a real risk, more than an inconvenience. Third, dismissing the 990 question entirely. "We're too small to worry about that" is wrong and dangerous; even organizations with $0 in revenue that hold 501(c)(3) status generally still need to file the 990-N e-Postcard annually, per IRS guidance on annual filing requirements ^[5]. Treating the smallest filing as optional is exactly how groups end up auto-revoked three years later. Fourth, no comfort with basic transparency. Nonprofit finances belong to the members or the public, not to one person's private judgment. A treasurer who bristles at producing a report or answering "where did that money go" is not the right fit, regardless of how good they are with numbers.

How do you interview someone with zero bookkeeping background?

Most volunteer treasurer roles get filled by parents or community members with no accounting degree, and that's fine. The job doesn't require a CPA; it requires organization, honesty, and willingness to ask for help. Instead of testing technical knowledge they don't have yet, test their instincts. Ask: "If you weren't sure whether an expense was OK to pay, what would you do?" The right instinct is "ask the board" or "check the budget line first,” not "just pay it, I'm sure it's fine." Ask about their current comfort with basic tools: do they use any budgeting app at home, have they managed a personal or family budget, have they ever been a treasurer for a smaller group (a book club, a scout troop)? These are legitimate signals even without professional bookkeeping experience. And be honest about support. If the board can pair a new treasurer with a bookkeeper, a template kit, or a mentor from the outgoing treasurer, say so in the interview. It changes who applies and who says yes. A State-Personalized Treasurer Kit built for your specific state's raffle and filing rules, at a one-time cost around $99, is one option some groups use to give a brand-new volunteer a starting map instead of a blank page; it's not a replacement for an accountant, and it doesn't guarantee any filing outcome, but it removes the "where do I even start" panic.

What should the interview process look like, start to finish?

Keep it short, but don't skip it just because it's a volunteer role. A 30-45 minute conversation with two or three current board members is enough for most clubs and PTOs. Structure it in three parts: background and availability (can they realistically commit the hours, especially around fundraiser season and tax filing deadlines), scenario questions (the money-handling and compliance questions above), and expectations (what reports the board wants, how often, what tools the group already uses). End with a plain statement of support: who they can call with questions, whether there's a written procedures document or 990 tax form history they'll inherit, and what the handoff from the outgoing treasurer will look like. A candidate who hears "you won't be doing this completely alone" is more likely to say yes, and more likely to actually stay in the role past one bad tax season. Finally, put the decision in writing. A one-page memo of what was discussed and agreed (signing authority, reporting frequency, filing responsibility) protects both the new treasurer and the board if questions come up later.

Frequently asked questions

What does a treasurer do?

A treasurer tracks all money coming in and going out, reconciles bank statements, builds and monitors the budget, and reports the financial picture to the board. In a nonprofit, the treasurer also usually owns (or coordinates) the annual IRS filing, such as the 990 or 990-N, and any required state charity registration.

What is a treasurer?

A treasurer is the officer of a club, nonprofit, or organization responsible for its money: recordkeeping, cash safeguards, budgeting, and financial reporting to the board or members. Bylaws usually name the treasurer as one of the required officers alongside president and secretary.

What do treasurers do on a monthly basis?

Most treasurers do a full bank reconciliation each month, update the ledger with new transactions, and give a short verbal or written financial report at the board meeting covering current balances, upcoming expenses, and budget-to-actual comparisons.

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, and activities. It is not an income tax bill for most 501(c)(3) groups; it's a public transparency filing, per IRS Form 990 instructions.

What does a treasurer do in a club?

A club treasurer manages dues, fundraiser cash, and expenses, keeps receipts and a ledger, reports balances at meetings, and often handles state raffle licensing questions if the club runs raffles. Cash-handling discipline (two counters, prompt deposits) matters more here than in most corporate treasurer roles.

What does a club treasurer do differently from a corporate treasurer?

A club treasurer deals with physical cash from concession stands and raffles far more often, reports to a volunteer parent board rather than a finance committee, and typically handles smaller-scale but still real IRS and state filing obligations, including the 990-N for small groups.

What is a 990 tax form?

It's the IRS's annual reporting form for tax-exempt organizations, used to disclose income, spending, and program activity. Depending on size, an organization files the full Form 990, the shorter 990-EZ, or the 990-N e-Postcard for smaller groups, based on gross receipts and asset thresholds set by the IRS.

What is the 990?

The 990 is shorthand for the IRS's family of annual information returns for tax-exempt organizations (Form 990, 990-EZ, 990-N). Filing status and thresholds are set by IRS rules and vary by organization size, so confirm current thresholds with IRS.gov before assuming which version applies.

What questions should I ask a nonprofit treasurer candidate?

Ask them to walk through a bank reconciliation, describe how cash from a fundraiser gets counted and deposited, explain whether they know the organization's 990 filing status and deadline, and describe what they'd do if they found a discrepancy or a missed filing from a prior treasurer.

What happens if a nonprofit misses its 990 filing?

Missing the required annual filing for three consecutive years triggers automatic revocation of tax-exempt status under federal law; the IRS states that organizations failing to file for three consecutive years automatically lose exempt status and must reapply to have it reinstated.

Does a small booster club or PTO really need to file anything with the IRS?

Generally yes. Even organizations with little or no revenue that hold 501(c)(3) status typically still need to file the 990-N e-Postcard annually unless another 990 version applies; confirm the exact requirement and any exceptions with the IRS for your specific organization.

Should a treasurer be the only signer on the bank account?

Most financial control guidance for nonprofits recommends against single-signer authority; a second signer or co-approval on larger transactions reduces both error and fraud risk. Confirm your bylaws and bank setup allow for at least two authorized signers on the account.

Is a nonprofit treasurer the same as an accountant?

No. A treasurer is a governance role, often filled by a volunteer with no accounting background, responsible for oversight, reporting, and basic recordkeeping. A nonprofit may also hire a bookkeeper or accountant to handle technical entries, but the treasurer still needs enough knowledge to explain the numbers to the board.

Sources

1. IRS, About Form 990: Tax-exempt organizations file Form 990 to provide the IRS information required by section 6033
2. IRS, Form 990 series filing due dates: 990 filings for calendar-year organizations are generally due the 15th day of the 5th month after the fiscal year ends
3. IRS, Automatic Revocation of Exemption: Organizations that fail to file required returns for three consecutive years automatically lose tax-exempt status
4. IRS, Annual Filing Requirements for Small Exempt Organizations (Form 990-N): Organizations with gross receipts normally $50,000 or less may file Form 990-N; larger organizations must file 990-EZ or the full 990 based on gross receipts and asset thresholds
5. California Corporations Code Section 5213: California nonprofit corporation law requires a corporation to have a chairperson of the board or a president or both, a secretary, and a treasurer or chief financial officer or both
6. IRS, Form 990 Instructions: Form 990 requires organizations to report revenue, expenses, program activities, and compensation of certain officers and key employees
7. IRS, Form 1023-EZ Eligibility Worksheet and Instructions: The streamlined 1023-EZ exemption application is a one-time filing separate from the annual 990 series filing obligation