Last updated 2026-07-25
TL;DR
A treasurer tracks money in and out, keeps bank and bookkeeping records straight, reports to the board monthly, and files the group's IRS return (Form 990-N, 990-EZ, or 990) every year. Small nonprofits under $50,000 in gross receipts file the free 990-N e-Postcard annually; miss it three years running and the IRS auto-revokes tax-exempt status.
What does a treasurer do?
A treasurer is the person a booster club, PTO, or youth sports group trusts to track every dollar that comes in and goes out. That's the one-sentence version. The real job is broader: bank reconciliation, budget tracking, board reporting, receipt and disbursement recordkeeping, and making sure the group's tax filings happen on time. Most treasurers are volunteers with no accounting background. That's fine. The job doesn't require a CPA license, it requires consistency. You need a system you can hand to the next person without them having to reverse-engineer your brain. If you can't explain where the money is right now, in under two minutes, your system needs work. Depending on the group's size, a treasurer might handle everything alone (small PTO, one bank account, a few thousand dollars a year) or split duties with a bookkeeper, a finance committee, or a paid accountant (larger booster clubs running six-figure concession and fundraising operations). Either way, the treasurer is the one who signs off on the numbers and answers for them at the board meeting.
What is a treasurer, exactly, in a volunteer organization?
In a volunteer nonprofit, a treasurer is an elected or appointed officer, usually named in the bylaws, responsible for the organization's financial recordkeeping and reporting. Unlike a corporate CFO, the booster club or PTO treasurer usually has no staff, no accounting software budget, and often no formal handoff from the previous person. The treasurer role typically sits on the executive board alongside the president, vice president, and secretary. Bylaws usually spell out term length (commonly one or two years), whether the treasurer can be re-elected, and what happens if the seat goes vacant mid-year. If your group's bylaws are silent or missing, that's the first thing to fix, not the last. A treasurer is not automatically the group's registered agent, EIN holder, or bank signer, though in practice they often are. Check who's actually listed with the IRS and the bank. It's common for a group's IRS records to still list a treasurer who resigned three years ago, which becomes a problem the moment you need to call the IRS about a filing issue.
What do treasurers do day to day, week to week, month to month?
| Deposit cash/checks, log transactions | Weekly or after each event | 30-60 min | |
|---|---|---|---|
| Bank reconciliation | Monthly | 30-45 min | |
| Board financial report | Monthly | 1-2 hours to prepare | |
| Budget vs. actual review | Monthly or quarterly | 30 min | |
| Annual IRS filing (990-N/EZ/full 990) | Annually | 15 min (990-N) to several hours (990-EZ/990) | |
| State charity registration renewal | Annually (if required) | Varies by state | |
| Fundraiser/raffle cash reconciliation | Per event | 1-3 hours per event | During fundraising season (car washes, concession stands, raffles, spring auctions) the workload spikes hard. This is when cash handling controls matter most: two people counting cash together, a signed count sheet, deposits made within a day or two, not sitting in someone's car for a week. |
Day to day, a treasurer deposits checks and cash, logs every transaction, and keeps receipts organized (physical folder or scanned, doesn't matter which, as long as it's consistent). Week to week, they reconcile the bank account against the ledger and follow up on anything that doesn't match. Month to month, they prepare a report for the board: cash on hand, income by category, expenses by category, and a comparison against budget. Here's a rough breakdown of how the workload splits for a typical mid-size booster club or PTO: | Task | Frequency | Typical time |
What does a treasurer do in a club or booster organization specifically?
A club treasurer manages the same core functions as any nonprofit treasurer, but booster clubs and school-affiliated groups add a few wrinkles: concession stand cash, raffle proceeds, sponsorship checks, spirit wear sales, and sometimes a relationship with the school district's own accounting office that requires separate reporting. Specific booster/PTO treasurer duties usually include: - Opening and maintaining a bank account in the organization's name (not a personal account, ever)
- Tracking income by fundraiser or program so the board can see which activities actually make money
- Reimbursing coaches, parent volunteers, or teachers for approved purchases, with receipts
- Preparing a written budget each year and tracking spending against it
- Filing the group's IRS return every year, even if there's no income
- Handling 1099s if the group pays any individual contractor $600 or more in a year
- Coordinating with whoever handles raffle or gaming licensing if the group runs raffles, since many states require a treasurer or officer signature on the license application A lot of booster clubs also handle player/participant fees and "pay to play" collections, which need to be tracked separately from general fundraising so families can see what they paid and why.
What is Form 990 and does the treasurer have to file it?
| $50,000 or less | Any | Form 990-N (e-Postcard) | |
|---|---|---|---|
| Less than $200,000 | Less than $500,000 | Form 990-EZ (or full 990) | |
| $200,000 or more | Any, or assets $500,000+ | Form 990 | The IRS states that "most small tax-exempt organizations whose gross receipts are normally $50,000 or less" file the 990-N [1]. This is the one most booster clubs and PTOs use. It's free, it's filed online through the IRS's Tax Exempt Organization Search system, and it takes about 10-15 minutes once you have your EIN and basic info handy. If your group's numbers are bigger, you'll want to read our full breakdowns on Form 990, the general [990](/articles/treasurer-basics/990) filing requirements, and Form 990-N specifically for the smallest organizations. |
Form 990 is the annual information return the IRS requires from most tax-exempt organizations, reporting income, expenses, and activities for the year. Yes, the treasurer (or whoever the board designates) is almost always the person who ends up filing it, because they're the one who has the numbers. Which version you file depends on gross receipts and assets: | Gross receipts | Total assets | Form required |
What is a 990 tax form and what is the 990-N e-Postcard specifically?
A 990 tax form is not really a tax return in the traditional sense since most filers owe no tax; it's an information return that keeps the IRS (and the public) informed about how a tax-exempt organization takes in and spends money. The 990-N, sometimes called the e-Postcard, is the simplest version, built for organizations with $50,000 or less in annual gross receipts [1]. The 990-N asks for basic identifying information: your EIN, tax year, legal name and address, confirmation that gross receipts are $50,000 or under, and a statement that the organization hasn't dissolved. There's no financial detail to enter. No line items. No budget breakdown. That's the whole point of the e-Postcard, it's meant to be fast for genuinely small organizations. The due date is the 15th day of the 5th month after your fiscal year ends. For a calendar-year organization (fiscal year ending December 31), that's May 15 [1]. Miss it, and nothing happens immediately, there's no penalty for a single late 990-N. But miss it for three consecutive years and the IRS automatically revokes your tax-exempt status, no warning letter required by law [2]. That's the single most common way small booster clubs and PTOs lose their exemption, not through wrongdoing, just through nobody filing for three years running because the treasurer changed twice and nobody knew the deadline existed.
What does a treasurer do if the group already lost its tax-exempt status?
If your organization shows up on the IRS Auto-Revocation List, you're not alone. There are decades of small nonprofits on that list, most of them exactly this kind of group. The fix is called retroactive reinstatement, filed using Form 1023 (or Form 1023-EZ for smaller organizations) along with the delinquent 990 returns [3]. The IRS runs a streamlined process for organizations that were eligible to file 990-N or 990-EZ and are applying for reinstatement within 15 months of the revocation date; this can allow retroactive reinstatement to the revocation date itself, which matters for any donors who claimed deductions in the gap. Outside that window, or for organizations that show reasonable cause for the multi-year lapse, there's a separate retroactive reinstatement process that requires a written statement explaining what happened and what's changed. This is genuinely one of the more paperwork-heavy tasks a new treasurer inherits, especially if you're taking over specifically because the group got the IRS revocation notice in the mail and nobody knew what to do with it. Confirm current forms, fees, and processing times with the IRS before you file anything, since these details shift periodically.
What does a treasurer of a club do with cash from fundraisers and raffles?
Cash handling is where treasurers get burned, not through fraud usually, just through sloppy process that later looks bad or genuinely goes missing. The basic rule: no single person should count cash alone, deposit cash alone, and reconcile the books alone, all three, every time, with no second set of eyes. A workable cash control routine for events: - Two people count the cash box together at the end of the event and both sign a count sheet
- The count sheet gets compared against any sales log (raffle tickets sold, concession items sold) before anyone leaves
- Cash gets deposited within a few business days, not held at someone's house
- The treasurer records the deposit against the specific event, not lumped into "general fundraising" If your group runs a raffle, most states require a charitable gaming or raffle license before you sell a single ticket, and the treasurer is often the one who signs the application or tracks the required reporting afterward. Rules vary widely by state on prize limits, ticket recordkeeping, and reporting deadlines, so confirm with your state charity office or attorney general's charitable gaming division before your first raffle, not after.
What records does a treasurer need to keep, and for how long?
At minimum, a treasurer should keep bank statements, deposit slips, receipts for every expense, board meeting minutes referencing financial decisions, the annual budget, and copies of every IRS filing (990-N confirmation emails count). Keep these for at least seven years; some documents (like the original 1023 exemption application, board minutes establishing bylaws, and any correspondence with the IRS about your exempt status) should be kept permanently. A simple three-tier system works for most small organizations: 1. Permanent file: EIN letter, IRS determination letter, bylaws, articles of incorporation 2. Seven-year file: bank statements, receipts, tax filings, board minutes, budgets 3. Current-year working file: whatever you're actively reconciling this month Digital storage (a shared drive folder, scanned receipts) is fine and honestly better than a shoebox, since it survives a treasurer transition better than a physical box that goes missing in a garage. Whatever system you use, write down where it lives. The next treasurer needs to find it without calling you six months after you've stepped down.
How does a treasurer hand off the role to the next person?
A clean handoff is the single best thing an outgoing treasurer can do for the organization's long-term health. Too many groups lose institutional knowledge every time the treasurer changes, and that's exactly when 990 deadlines get missed and bank access gets tangled. A real handoff includes: updated bank signature cards, the EIN and IRS online account access, copies of the last three years of 990 filings, the current budget and reconciled bank statement, any outstanding reimbursements or bills, and a written summary of upcoming deadlines (annual filing date, state registration renewal, any grant reporting). If your state requires charitable registration renewal, note that deadline too, since many states set it separately from the IRS date. If you're building this handoff packet from scratch because nobody left you one, that's a common starting point for new treasurers, and it's exactly the gap a state-specific document set is built to close: a Treasurer Kit built around your state's filing thresholds and raffle rules can save a new treasurer weeks of research, for a one-time $99 cost, compared to piecing it together from scattered IRS pages and state forms.
What's the difference between a treasurer and a bookkeeper or accountant?
A treasurer is an elected officer with fiduciary responsibility to the board; a bookkeeper is someone (paid or volunteer) who handles the mechanical work of recording transactions. In small groups, one person is both. In larger booster clubs, the treasurer might oversee a parent volunteer or a paid part-time bookkeeper who does data entry while the treasurer reviews, reports, and signs. An accountant, especially a CPA, is a different level entirely and usually isn't needed for day-to-day operations. Where a CPA earns their fee is at the higher end: preparing a full Form 990 (not the 990-N or EZ) for organizations over the $200,000 gross receipts threshold, or handling an independent audit if your state requires one above a certain revenue level. Several states set audit or CPA-review thresholds for registered charities; check your specific state's charity registration office for the exact dollar figure, since it varies. None of this is legal or tax advice, and nothing here guarantees a particular filing outcome or exemption status. Rules change and vary by state; confirm specifics with the IRS and your state charity office before you file anything or make a final call on structure.
Frequently asked questions
What does a treasurer do?
A treasurer tracks all incoming and outgoing money for an organization, keeps bank and bookkeeping records reconciled, reports finances to the board regularly, and handles required tax filings like the IRS Form 990-N, 990-EZ, or 990. In booster clubs and PTOs, this also usually includes budget tracking and event cash handling.
What is a treasurer?
A treasurer is an elected or appointed officer, usually defined in an organization's bylaws, responsible for financial recordkeeping, reporting, and often tax compliance. In volunteer nonprofits like booster clubs and PTOs, the treasurer sits on the executive board alongside the president, vice president, and secretary.
What do treasurers do that other officers don't?
Treasurers are the only officers with direct authority and responsibility over bank accounts, financial records, and tax filings. The president sets agendas and represents the group publicly; the secretary keeps meeting minutes; the treasurer is accountable for where every dollar came from and went.
What is Form 990?
Form 990 is the annual information return the IRS requires from most tax-exempt organizations. It reports income, expenses, and activities for the year. Small organizations with $50,000 or less in gross receipts typically file the simplified 990-N e-Postcard instead of the full form.
What does a treasurer do in a club, specifically a booster club?
A booster club treasurer manages fundraiser and concession cash, tracks program-specific budgets (like separate accounts for football versus band), reimburses coaches and volunteers with receipts, files the annual IRS return, and often coordinates raffle licensing paperwork with the state charity office.
What is a 990 tax form?
A 990 tax form is an information return, not a typical tax return since most filers owe no tax, that keeps the IRS and public informed about a tax-exempt organization's finances and activities. Versions include the 990-N (smallest orgs), 990-EZ, and the full Form 990 for larger organizations.
What is the 990?
The 990 usually refers to the full IRS Form 990 filed by tax-exempt organizations with $200,000 or more in annual gross receipts or $500,000 or more in total assets. Smaller organizations file simplified versions: the 990-N e-Postcard or the 990-EZ.
What does a treasurer of a club do if there's no income for the year?
You still have to file. Even organizations with zero income must file Form 990-N (or a higher version if applicable) every year to maintain tax-exempt status. There is no minimum income exemption from the filing requirement itself, per IRS guidance on annual exempt organization returns.
How often does a treasurer need to file with the IRS?
Every year, without exception, as long as the organization holds tax-exempt status. The deadline is the 15th day of the 5th month after your fiscal year ends; for calendar-year filers that's May 15. Missing three consecutive years triggers automatic revocation of tax-exempt status.
What happens if a treasurer misses the 990 deadline?
A single missed 990-N deadline carries no automatic penalty, though the IRS may reach out. But missing three consecutive years results in automatic revocation of tax-exempt status under federal law, with no advance warning letter required before revocation happens.
Can a treasurer be held personally liable for financial mistakes?
Generally no, if the treasurer acts in good faith and within their authorized role; most nonprofits carry director and officer liability protections through state nonprofit law. But personal liability can arise from fraud, gross negligence, or misuse of restricted funds. This isn't legal advice; consult an attorney for your specific situation.
Does a treasurer need accounting experience?
No formal accounting credential is required for most volunteer treasurer roles. What matters more is consistency: keeping records organized, reconciling the bank account monthly, and understanding your organization's specific IRS filing threshold and deadline.
What's the difference between a treasurer and a bookkeeper?
A treasurer is an elected officer with fiduciary duty to the board and often signs off on the group's finances and filings. A bookkeeper does the mechanical recording of transactions. Small groups often combine both roles into one volunteer.
Sources
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): 990-N is for organizations with gross receipts normally $50,000 or less, and the deadline is the 15th day of the 5th month after the fiscal year ends
- IRS, Automatic Revocation of Exemption: Failing to file required 990 returns for three consecutive years results in automatic revocation of tax-exempt status
- IRS, Revenue Procedure 2014-11 (streamlined and retroactive reinstatement procedures): Organizations eligible to file 990-N or 990-EZ can apply for streamlined retroactive reinstatement within 15 months of revocation
- IRS, Form 990 Series Which Forms Do Exempt Organizations File: Filing thresholds distinguishing 990-N, 990-EZ, and full Form 990 based on gross receipts and total assets
- IRS, Form 1023-EZ Streamlined Application for Recognition of Exemption: Form 1023-EZ is used by smaller organizations applying for reinstatement of tax-exempt status
- IRS, Annual Exempt Organization Return: Due Date: Annual return due date rules for exempt organizations based on fiscal year end