What does a treasurer do on a board? a plain guide

Last updated 2026-07-25

what does a treasurer do, in plain terms

A treasurer keeps the organization's financial story straight and tells it honestly to the board. That means recording every dollar in and out, keeping the bank account reconciled against the books, and showing up to board meetings with a real answer to "how much money do we have and where did it go." On paper it sounds like bookkeeping. In practice it's closer to being the board's early warning system. If dues aren't coming in, if a vendor invoice is three months overdue, if the checking account balance doesn't match what the treasurer's spreadsheet says it should, the treasurer is the one who notices first and says something. Most small nonprofits, PTOs, and booster clubs don't have a paid bookkeeper. The treasurer is a volunteer doing this on top of a day job, which is exactly why the role needs some structure instead of "I'll just remember it." A shared spreadsheet or simple accounting tool, a monthly reconciliation habit, and a written handoff for the next person beat memory every time.

what is a treasurer

A treasurer is the board officer legally and functionally responsible for an organization's money: cash, bank accounts, budgets, and financial reporting to the board and, often, to the state and IRS. Most bylaws name the treasurer as one of a handful of required officers, alongside a president/chair and secretary. The treasurer isn't just "the person who's good with numbers." It's a fiduciary position. Board members, treasurer included, owe the organization a duty of care and a duty of loyalty, meaning they're expected to act in the organization's best interest and pay reasonable attention to its finances, not rubber-stamp whatever's put in front of them. State nonprofit corporation laws generally spell out these fiduciary duties for directors and officers; check your state's nonprofit corporation act or your state attorney general's charities page for the specifics that apply to your organization ^[1]. In a lot of small volunteer groups, the treasurer is also the only person who really understands the accounts. That's convenient and also risky. If the treasurer is the sole person with online banking access, the sole signer, and the only one who's ever seen a bank statement, the organization has no real check on that person, fair or not. Good boards spread out at least a little of that visibility on purpose.

what do treasurers do day to day and month to month

Day to day, a treasurer opens mail (or a shared inbox) for invoices and deposits, records transactions, and answers "can we afford this" questions from other board members or committee chairs. Month to month, the job has a rhythm. Here's a realistic monthly cycle for a small booster club or PTO treasurer: - Reconcile the bank statement against the books, line by line

• Record all deposits (dues, fundraiser proceeds, concession stand cash) with backup documentation
• Pay approved bills and log receipts
• Prepare a simple report: starting balance, income, expenses, ending balance, by category
• Present that report at the board meeting and answer questions
• Flag anything unusual: a bounced check, a missing deposit, a budget category running over Annually, the list grows: build or update a budget, help with an audit or financial review if the bylaws require one, and handle the tax filing (more on that below). If the group runs raffles or other charitable gaming, the treasurer usually tracks that separately too, since many states want raffle proceeds and prize payouts reported distinctly from general fundraising. Confirm the specific reporting format with your state charity office or state attorney general's charities division, since rules vary a lot by state.

what does a treasurer do in a club or booster organization specifically

In a club or booster organization, the treasurer's job is the same core job, just at a smaller scale with more cash and more volunteers touching money. Club treasurers deal with concession stand cash boxes, Venmo payments from parents, spirit wear sales, and entry fees at tournaments, on top of the usual dues and bank account management. Cash handling is where booster and youth-sports treasurers get burned most often, not because anyone's usually stealing, but because nobody counted the cash box before and after a concession shift, so nobody can prove what came in. A simple two-person count-and-sign process for any cash event fixes most of this. Two people count the drawer at the start, two people count it at the end, both sign a slip, and that slip goes to the treasurer with the deposit. Club treasurers also tend to be the one who knows whether the organization is even properly recognized as tax-exempt, whether it has an EIN, and whether last year's 990-series filing actually went in. That last piece matters more than most new treasurers realize, because missing it three years running gets the organization's tax-exempt status automatically revoked by the IRS, with no warning letter required beyond the standard filing reminders ^[2].

what a treasurer does that's different from a bookkeeper or accountant

A bookkeeper records transactions. A treasurer records transactions too, but also makes judgment calls: is this expense within budget, does this fundraiser need a raffle license, should the board approve a $2,000 purchase or is that outside what was budgeted. The treasurer answers to the board; a hired bookkeeper answers to the treasurer or the board. Most small nonprofits don't have a separate bookkeeper and treasurer. One volunteer does both jobs. That's fine, but it means the treasurer needs to wear both hats deliberately: keep clean books (the bookkeeper hat) and also flag financial risk and make sure the board is genuinely informed (the treasurer hat). A treasurer who only does data entry and never says "we're $3,000 over budget in concessions supplies" out loud at a meeting isn't fully doing the job. An accountant, if the organization hires one, usually helps with the tax filing, an audit, or setting up the chart of accounts correctly. The treasurer is still the one who has to actually run the books between those engagements and answer to the board in between.

what is form 990 and why does the treasurer care

Gross receipts normally $50,000 or less	Form 990-N (e-Postcard)
Gross receipts under $200,000 and total assets under $500,000	Form 990-EZ (or full 990)
Gross receipts $200,000 or more, or total assets $500,000 or more	Form 990
Private foundations (any size)	Form 990-PF	Source: IRS, "Annual Exempt Organization Returns" filing thresholds [4]. Most small PTOs and booster clubs land in the 990-N bucket. It's a short online form (basically name, EIN, address, confirmation that gross receipts are under the threshold), filed through the IRS's e-Postcard system, and it's genuinely quick once the organization's info is set up. See our guide to Form 990-N for the specifics on how to file it. The treasurer cares because this filing is due every year, on a schedule tied to the organization's fiscal year end, and missing it isn't a slap on the wrist. It's the mechanism that triggers automatic revocation.

Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, and activities. It's not an income tax return in the usual sense (exempt organizations generally don't owe income tax on mission-related activities), it's a disclosure form that keeps the IRS, and often the public, informed about how the organization operates and spends money ^[3]. Which version an organization files depends on gross receipts and assets. The IRS breaks it down roughly like this: | Organization size | Which form to file |

what is the 990 tax form used for, exactly

The 990 tax form is used by the IRS and the public to see what a tax-exempt organization did with its money in a given year: how much it took in, how much it spent, on what, and who got paid. Larger organizations disclose officer compensation, program spending versus overhead, and details on fundraising events. For a booster club or PTO filing the full 990 or 990-EZ (rather than the 990-N postcard), the form asks about things like: total revenue by source, total expenses by category, a balance sheet snapshot, and a list of program service accomplishments. It's meant to let donors, grantmakers, and the general public judge whether the organization is doing what it says it's doing with the money it raised ^[3]. A lot of new treasurers ask "is the 990 the same as our state filing." No. The IRS 990 series is a federal filing. Most states also require their own annual charity registration renewal or financial report, separate from the IRS form, filed with the state attorney general's office or secretary of state. Confirm your state's specific requirement with your state charity office, since deadlines and thresholds differ from the federal ones. Read more on what's actually on the form and how to prepare it in our Form 990 guide, or start with the shorter 990-N overview if your group is small.

what happens if a treasurer doesn't file the 990 on time

If an organization fails to file its required 990-series return for three consecutive years, the IRS automatically revokes its tax-exempt status, with no separate warning letter beyond the standard filing reminders sent to the address on file ^[2]. This is called auto-revocation, and it's happened to a lot of small booster clubs and PTOs that changed treasurers a few times and lost track of who was supposed to file. The IRS states plainly: "Organizations that do not file for three consecutive years automatically lose their tax-exempt status. This is called automatic revocation" ^[2]. Once that happens, the organization is treated as a taxable entity going forward and, more painfully for a small booster club, donations made to it after the revocation date generally stop being tax-deductible to donors until exemption is reinstated. Reinstatement is possible, through IRS Form 1023 (or 1023-EZ, if eligible) with either retroactive reinstatement (if certain deadlines and reasonable-cause requirements are met) or reinstatement effective going forward. There's no guarantee the IRS grants retroactive reinstatement in any given case; it depends on the facts and the reasonable-cause statement filed. This is exactly the kind of situation where a new treasurer taking over mid-crisis benefits from a checklist built for it rather than winging it, which is part of why the $99 one-time State-Personalized Treasurer Kit exists: a set of state-specific filing and recovery checklists so a volunteer treasurer isn't guessing at IRS forms alone. It's not a substitute for a CPA or attorney if the situation is complicated, but for a straightforward small-club catch-up filing, it gives you the sequence to follow.

what other filings and reports does a treasurer handle besides the 990

Beyond the federal 990-series, a treasurer typically juggles a few other recurring obligations, and which ones apply depends heavily on the state and the organization's activities. Common ones include: state charitable solicitation registration (required in most states before publicly asking for donations, separate from IRS exemption), sales tax exemption certificates or filings if the state offers them to nonprofits, state annual corporate report filings (often through the secretary of state, separate from the charity registration), and raffle or gaming permits if the group runs raffles, bingo, or similar games of chance. Raffle rules in particular vary enormously by state. Some states require a specific raffle license with its own application, fee, and reporting of proceeds and prizes; others allow small raffles by certain nonprofit types with minimal registration; a few restrict raffles significantly. There is no shortcut here: confirm the specific rules with your state's charity regulator or attorney general's office before running a raffle, because both the licensing requirement and the penalties for skipping it differ state to state. A treasurer doesn't need to memorize all of this. What matters is keeping a simple running list, organization by organization, of what's due when: 990-series filing deadline, state charity registration renewal date, any raffle permit renewal, annual corporate report date. Miss one and it's usually fixable. Miss the same one three years running (especially the federal filing) and it becomes the auto-revocation problem described above.

what a treasurer's financial controls should look like

A treasurer running the finances of a small nonprofit alone, with no other set of eyes, is a control gap, not a compliment to how trustworthy that person is. Good controls protect the treasurer as much as the organization, because they mean nobody can later claim the treasurer had unchecked access to the money. A workable baseline for a small booster club or PTO looks like this: two signers required on any check or transfer above a set dollar threshold the board agrees on, monthly bank reconciliation reviewed by someone other than the treasurer (even just the board president skimming it), a written record of every cash count with two signatures, and a board-level financial report at every meeting, more than once a year. None of this requires expensive software. A shared spreadsheet, a dedicated nonprofit bank account (never a personal account, ever), and a habit of documenting cash handoffs cover most of what a small volunteer-run group needs. See our broader guide on financial controls for a fuller list, including what to do differently at events with heavy cash volume like concession stands or gate admissions.

how does a treasurer hand off the role to the next person

A treasurer's handoff should include the bank account access transfer, the current chart of accounts or category list, the last 12 months of bank reconciliations, copies of the last three years of tax filings (990-series and any state filings), and a written note on anything unusual or unresolved: an outstanding invoice, a raffle permit renewal coming up, a discrepancy nobody's tracked down yet. Too many booster club and PTO treasurer transitions happen with a shoebox of receipts and a "good luck." That's how organizations end up not realizing they've missed two years of 990-N filings until the third year triggers auto-revocation. A one-hour handoff meeting with a written checklist, even an imperfect one, beats no handoff every time. See our handoff and audits guide for a fuller checklist, including what a first-year treasurer should ask for on day one if the outgoing treasurer isn't available to walk through it in person.

Frequently asked questions

what does a treasurer do on a board of directors

A board treasurer tracks the organization's money (income, expenses, bank balances), reports that financial picture to the board at each meeting, keeps the books reconciled, and makes sure required tax and state filings (like the IRS 990 series) are filed on time. It's a fiduciary role with real legal responsibility, more than informal bookkeeping.

what is a treasurer in a nonprofit or club

A treasurer is the officer responsible for an organization's finances: recording transactions, managing bank accounts, budgeting, and reporting to the board and often to the IRS and state charity office. Most bylaws require a treasurer as one of a handful of standard officer positions, alongside a president/chair and secretary.

what do treasurers do that's different from other board members

Other board members set policy and direction; the treasurer specifically tracks and reports the money behind those decisions. While every board member shares fiduciary duty for the organization's finances, the treasurer is the one who keeps the detailed records, reconciles accounts, and flags budget problems before they become crises.

what does a club treasurer do differently from a corporate treasurer

A club treasurer (booster club, PTO, youth sports) usually handles more cash directly, concession stands, gate fees, spirit wear sales, on top of dues and a bank account. A corporate treasurer manages larger, more formal cash flow and investment decisions. The core duties (tracking money, reporting, filing) are similar; the scale and cash-handling risk differ a lot.

what is form 990 and does every nonprofit have to file it

Form 990 is the IRS's annual information return for tax-exempt organizations, disclosing income, expenses, and activities. Nearly every tax-exempt organization must file some version (990, 990-EZ, or 990-N depending on size), with churches and a few other categories among the limited exceptions. Confirm your organization's specific filing obligation at irs.gov.

what is the 990-N and who has to file it

Form 990-N, also called the e-Postcard, is the short annual filing for tax-exempt organizations with gross receipts normally $50,000 or less. It's filed online through the IRS and asks for basic identifying information plus confirmation of the gross receipts threshold. See our 990-N guide for the filing steps.

what is the 990 tax form used for

The 990 tax form lets the IRS and the public see how a tax-exempt organization raised and spent money in a given year, including revenue sources, expense categories, and (for larger filers) officer compensation and program accomplishments. It's a disclosure return, not an income tax bill, since most exempt organizations owe no income tax on mission-related activity.

what happens if a treasurer misses the 990 filing for multiple years

Missing the required 990-series filing for three consecutive years triggers automatic revocation of the organization's tax-exempt status under IRS rules, with no case-by-case warning beyond standard reminders. After revocation, donations generally stop being tax-deductible until the organization successfully applies for reinstatement, which isn't guaranteed.

does a small booster club or PTO really need to file taxes

Yes, if it's recognized as tax-exempt (or should be), it almost certainly needs to file something annually, usually Form 990-N if gross receipts are normally $50,000 or less. Even organizations with very little income are expected to file; the 990-N was created specifically so small nonprofits wouldn't have an excuse to skip it.

can one person be both treasurer and bookkeeper in a small nonprofit

Yes, and in most small booster clubs and PTOs one volunteer does both jobs by necessity. The tradeoff is a control risk: if that one person has sole bank access and no second set of eyes, there's no real check on the finances. Boards should still require dual signers or a second reviewer on reconciliations even when one person does the daily work.

what should a new treasurer ask for when taking over the role

Ask for online banking access transfer, the last 12 months of bank statements and reconciliations, copies of the last three years of tax filings, the current budget and chart of accounts, and any outstanding bills, permits, or unresolved discrepancies. A written handoff checklist prevents the common problem of missed filings nobody noticed until it caused a bigger issue.

how much cash handling training does a booster club treasurer need

No formal training is required, but every treasurer running cash-heavy events (concessions, gate admissions) should adopt a simple two-person count-and-sign process at the start and end of each shift. That single habit prevents most cash disputes and protects both the volunteers handling cash and the treasurer who has to account for it later.

Sources

1. National Council of Nonprofits, State Law Nonprofit Audit Requirements (example of state-level fiduciary and financial oversight guidance): Board members, including treasurers, owe duties of care and loyalty and are expected to pay reasonable attention to organizational finances
2. IRS, Automatic Revocation of Exemption: Organizations that fail to file required 990-series returns for three consecutive years automatically lose tax-exempt status
3. IRS, Form 990 Series: Which Forms Do Exempt Organizations File: Form 990 is the annual information return used by tax-exempt organizations to report income, expenses, and activities to the IRS
4. IRS, Annual Exempt Organization Returns and Notices Filing Thresholds: Filing thresholds for Form 990-N, 990-EZ, 990, and 990-PF based on gross receipts and total assets
5. IRS, e-Postcard (Form 990-N): Form 990-N is filed electronically for organizations with gross receipts normally $50,000 or less
6. IRS, Applying for Tax-Exempt Status Again After Automatic Revocation: Organizations can seek reinstatement via Form 1023 or 1023-EZ, with retroactive reinstatement not guaranteed and dependent on reasonable-cause criteria