Last updated 2026-07-25
TL;DR
A nonprofit treasurer keeps the books, tracks cash in and out, files the yearly IRS return (Form 990, 990-EZ, or 990-N), reports finances to the board, and helps design controls so no one person handles money alone. It's a fiduciary role, more than bookkeeping.
what does a treasurer do?
A nonprofit treasurer manages the organization's money and makes sure the board can see the truth about it at any time. That means recording income and expenses, reconciling the bank account, paying bills, tracking restricted funds, and preparing whatever reports the board or members expect at meetings. The job is bigger than "keeping the checkbook." A treasurer is a fiduciary, someone who owes the organization a legal duty of care and loyalty with its money. That's true whether you're running a $400,000 nonprofit with a part-time bookkeeper or a booster club with $6,000 in a checking account and a bake sale coming up. Most of the actual day-to-day work is unglamorous. You're categorizing PayPal deposits, matching receipts to reimbursements, and nagging people for W-9s. But the underlying responsibility is what makes the job matter: someone has to be accountable for whether the money is where the records say it is. If you just inherited this job with no handoff notes, start with the bank statements for the last 12 months and the last filed tax return. Those two things tell you more about the real financial state of the organization than anything a predecessor tells you verbally.
what is a treasurer, exactly?
A treasurer is the officer of a nonprofit, club, or association responsible for its money: cash, bank accounts, financial records, and reporting. In most small nonprofits the treasurer is a volunteer board member, not a paid employee, and the title comes with legal responsibility even without a paycheck. State nonprofit corporation laws generally require certain officer roles, though the specifics of what a "treasurer" must do are usually left to the organization's own bylaws rather than spelled out in statute. Check your state's nonprofit corporation act and your own bylaws for the exact language that applies to you; requirements vary and "treasurer" duties in one state's model act may differ from another's. In a booster club or PTO, the treasurer is often the only person who really understands the money. That's a liability, not a compliment. If you're the treasurer, one of your actual jobs is making sure you're not the only person who understands the money, because if you get hit by a bus (or just quit in frustration), the organization needs to survive that.
what do treasurers do day to day, month to month, and year to year?
| Weekly | Deposit checks/cash, log transactions, approve small reimbursements | |
|---|---|---|
| Monthly | Reconcile bank statement, pay recurring bills, report to board | |
| Quarterly | Budget-to-actual review, review restricted fund balances | |
| Annually | File IRS Form 990/990-EZ/990-N, renew state charity registration, prep for audit/review, transition records to next treasurer | The monthly bank reconciliation is the single most important habit to build. It's the thing that catches errors, fraud, and "wait, where did that $300 go" moments before they become a crisis at the annual meeting. If you only do one financial control well, do this one. |
Treasurer work happens on three timelines, and confusing them is how organizations get into trouble. Daily and weekly tasks are transactional: depositing checks, logging expenses, paying invoices. Monthly and quarterly tasks are about oversight: reconciling the bank statement against the books, presenting a financial report to the board, reviewing budget-to-actual numbers. Annual tasks are about compliance: filing the IRS return, renewing state charitable registration if required, and possibly coordinating an audit or financial review. Here's a rough breakdown by frequency: | Frequency | Typical tasks |
what does a treasurer do in a club or a booster/PTO organization?
A club treasurer does everything a nonprofit treasurer does, just at a smaller scale and usually with volunteer, part-time attention. That still includes collecting dues or fundraising money, paying vendors (uniforms, tournament fees, event costs), tracking a budget, and reporting balances to the board or membership at meetings. Booster clubs and PTOs have some specific wrinkles. Many are recognized as tax-exempt under a group exemption held by a parent organization (a state PTA, for example), while others file for their own 501(c)(3) status. Either way, someone still has to file an annual return with the IRS, even if the club's total revenue is small. A gross receipts threshold of $50,000 or less generally lets small organizations file the simplified Form 990-N instead of the longer 990 or 990-EZ [1]. Club treasurers also deal more with cash than a typical office-based nonprofit does: concession stand receipts, raffle ticket sales, car wash proceeds. Cash handling is where the highest fraud risk sits, because there's no bank record until someone deposits it. If you're running concessions or a raffle table, two people should count the cash together and both should initial the count sheet before it goes in the bag for deposit. If your club sells raffle tickets, note that most states require a specific charitable gaming or raffle license before you can legally run one, separate from your federal tax-exempt status. Confirm the requirement and application process with your state's charity office or attorney general's office before selling a single ticket.
what is Form 990, and does the treasurer have to file it?
| 990-N (e-Postcard) | Small orgs | Gross receipts normally ≤$50,000 [1] | |
|---|---|---|---|
| 990-EZ | Mid-size orgs | Gross receipts <$200,000 AND total assets <$500,000 [3] | |
| 990 (full) | Larger orgs | Gross receipts ≥$200,000 OR total assets ≥$500,000 [3] | |
| 990-PF | Private foundations | All private foundations, regardless of size [3] | The treasurer is usually the person who either prepares this return or gathers the numbers for whoever does (a bookkeeper, CPA, or board member with tax experience). Even if you outsource the actual filing, the treasurer is the one who has to know the deadline and confirm it happened. Confirm your organization's specific filing threshold and form with irs.gov or a qualified tax preparer, since thresholds and rules can change. For more on the filing mechanics themselves, see form 990 and irs form 990. |
Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, and other financial and governance information. It's public: donors, journalists, and watchdog groups can look up any nonprofit's recent 990s to see how the money moves. The IRS describes it plainly: "Form 990 is used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033" [2]. Which version you file depends on your organization's gross receipts and total assets: | Form | Who files it | Rough threshold |
what is a 990 tax form used for, in plain terms?
The 990 tax form exists so the IRS, and the public, can see whether a tax-exempt organization is actually operating the way it claimed it would when it applied for exemption. It reports revenue by source, expenses by category, compensation of top staff, and answers to governance questions like whether the board reviewed the return before filing. It is not an income tax return in the traditional sense, since most filers owe no tax. Think of it as an accountability document. Grantmakers, banks, and even some school districts will ask to see a nonprofit's most recent 990 before doing business with it, so keeping it accurate and filed on time protects the organization's credibility, more than its legal status. Missing the deadline has a specific, serious consequence: "Organizations that fail to file required returns for three consecutive years will automatically lose their tax-exempt status" [4], according to the IRS. That's called auto-revocation, and it happens to a surprising number of small volunteer-run groups that simply lost track of who was supposed to file. Getting reinstated after auto-revocation is possible but takes time, paperwork, and sometimes a filing fee, so it's much cheaper to just file on time every year. Related reading: [990](/articles/treasurer-basics/990), 990 tax form, 990n, and form 990-n for the small-org version most booster clubs and PTOs actually use.
what is the 990, versus the 990-EZ or 990-N? which one do I file?
"The 990" usually refers to the full-length Form 990, but people also use it loosely to mean whatever version of the annual return applies to their organization. The right one depends almost entirely on your gross receipts and total assets for the year, as shown in the table above. Most booster clubs, small PTOs, and youth sports associations land in the 990-N category, since their gross receipts are usually under $50,000. The 990-N asks for basic information only: your organization's legal name, EIN, tax year, confirmation that receipts are under the threshold, and a couple of other data points. It has to be filed electronically through the IRS's system, and there's no paper version [1]. Organizations with more revenue file the 990-EZ or the full 990, both of which ask for detailed financial statements, program descriptions, and governance disclosures. If your club's revenue jumped this year because of a big fundraiser or a grant, check whether you've crossed a threshold that bumps you up to a different form. Nobody enjoys finding that out in year two. Whichever form applies, the deadline is generally the 15th day of the 5th month after your organization's accounting period ends, which for a calendar-year filer is May 15 [1]. Confirm your specific deadline and form with irs.gov, since your organization's fiscal year and any extensions can shift this.
what does a club treasurer do that a corporate treasurer doesn't?
A corporate treasurer manages cash flow, banking relationships, and sometimes investments for a for-profit company with paid finance staff behind them. A club or nonprofit treasurer usually does that same core job, plus a bunch of things a corporate treasurer would never touch personally: counting concession cash, chasing down a coach's receipts, and explaining to a room of parents why the budget line for uniforms went over. The legal responsibility is actually heavier in some ways for the volunteer treasurer, because there's rarely a finance department behind them catching errors. A corporate treasurer has an internal audit team, a controller, and outside auditors as backstops. A booster club treasurer often has a shoebox of receipts and a spouse who's tired of hearing about it. That's exactly why basic financial controls matter more, not less, in a volunteer setting. Two signers on the bank account. Someone other than the treasurer opening the bank statement each month. A written policy for expense reimbursement, even a one-page one. These aren't corporate overkill; they're the difference between a treasurer who can hand off cleanly and one who ends up under suspicion because nobody else ever saw the books.
what are the core financial controls a treasurer should have in place?
At minimum, a nonprofit or club treasurer should have: two authorized signers on every bank account, a rule that no single person both collects and deposits cash alone, monthly reconciliation reviewed by someone other than the treasurer, and a simple written record of who approved what expense. A few specifics that come up constantly in booster and PTO settings. Cash from events (concessions, raffles, car washes) should be counted by two people together, with both initialing a count sheet before deposit. This single habit closes off the most common opportunity for "missing" cash, whether that's theft or an honest counting error. Debit cards are convenient and dangerous. If your organization uses one, require receipts for every swipe and review the statement monthly, more than at year-end. Reimbursements should require a receipt and a second signature above some dollar threshold your board sets (commonly $100 to $250, though there's no legal standard here; pick what fits your organization's size). Bank statements should go to someone other than the treasurer first, even if that's just the board president glancing at it before forwarding it along. This is the cheapest fraud deterrent available and it costs nothing but a five-minute habit. None of this requires expensive software. A shared spreadsheet, a dedicated checking account, and a habit of reconciling monthly covers 90% of what small organizations actually need.
what happens if the treasurer role gets neglected or a nonprofit's status gets auto-revoked?
If nobody files the required return for three consecutive years, the IRS automatically revokes the organization's tax-exempt status, and the IRS publishes a searchable list of revoked organizations [5]. Donations made after revocation generally aren't tax-deductible to the donor, and the organization may owe income tax on money it previously considered exempt. Reinstatement is possible through a process the IRS calls "retroactive reinstatement," which involves filing Form 1023 (or 1023-EZ for smaller organizations) again along with the missed returns, and sometimes a reasonable cause statement explaining what went wrong. The IRS lays out the specific reinstatement procedures, including streamlined retroactive reinstatement for organizations that were eligible to file Form 990-N or 990-EZ for the year revocation occurred, in Revenue Procedure 2014-11 [6]. It's not fast and it's not free; there are IRS user fees involved, and the amount depends on the reinstatement path and organization size, so confirm current fees directly with irs.gov before starting. The practical lesson for treasurers: put the filing deadline on a calendar with a reminder months in advance, not the week it's due. If you take over an organization and don't know its filing history, check the IRS Tax Exempt Organization Search tool immediately; it will show you the last few years of filings (or the absence of them) and whether revocation has already happened [5]. That's a five-minute check that can save you months of cleanup later.
who is the treasurer accountable to, and what should the handoff look like?
The treasurer reports to the board of directors (or, in a club, to the officers and membership), and ultimately the board is accountable to the state and the public for how the organization's money is used. That chain matters: the treasurer isn't a lone operator, they're the board's eyes on the money, and the board should actually look at what the treasurer reports, more than nod along. A clean handoff between outgoing and incoming treasurers should include: the last three years of bank statements and reconciliations, the last filed IRS return (990, 990-EZ, or 990-N), any state charitable registration paperwork, the current budget, a list of recurring bills and their due dates, and login credentials for the bank and any accounting software. If any of that is missing, the incoming treasurer's first job is reconstructing it, starting with bank statements, which the bank itself can usually provide going back several years if your own records are incomplete. This is the part where a lot of organizations struggle, because volunteer turnover happens fast and informally. One person quits after their kid graduates, and the records go into a box in someone's garage. Building a standard handoff checklist into your bylaws or officer transition process now saves the next person a genuinely miserable few months of reconstruction later.
where does a new treasurer actually start?
Start with three documents: the last 12 months of bank statements, the most recently filed IRS return, and the current bylaws. Between those three, you'll know your cash position, your filing status and deadline, and what your bylaws actually require of you (which may be more specific than you'd expect on things like signing authority or reporting frequency). Next, check the IRS Tax Exempt Organization Search to confirm your organization's exempt status is current and see the filing history [5]. If you find gaps or see "revoked" status, deal with that before anything else; it's the single most urgent problem a new treasurer can inherit. Then set up the boring infrastructure: a dedicated bank account if you don't already have one, two signers, a simple spreadsheet or accounting tool for tracking income and expenses by category, and a calendar reminder for your annual filing deadline, set at least two months ahead of the actual date. If you want a starting structure rather than building all this from scratch, BoosterLedger's State-Personalized Treasurer Kit is a one-time $99 package built around your specific state's raffle and registration rules, with templates for the handoff checklist, cash-count sheets, and a filing calendar. You don't need it to do this job well, plenty of treasurers build their own system with a spreadsheet, but it saves the reconstruction work if you're starting from nothing.
what should a treasurer's monthly report to the board include?
A good monthly treasurer's report has four things: current bank balance, income and expenses since the last report, a comparison to budget, and anything unusual that needs a board decision. It doesn't need to be fancy. A single page with those four sections, read aloud or shared before the meeting, beats a dense spreadsheet nobody actually reads. Boards should ask questions about the report, more than accept it. "Why did the concessions line come in low this month" or "what's this $400 reimbursement for" are exactly the kinds of questions that catch problems early and, frankly, protect the treasurer too. A treasurer whose numbers get real scrutiny every month has a much easier time proving everything was clean if anyone ever asks later. For organizations required to file the full Form 990 or 990-EZ, this monthly discipline also makes the annual filing dramatically easier, since you're not reconstructing a year of transactions from memory in April.
Frequently asked questions
What does a treasurer do?
A treasurer manages an organization's money: tracking income and expenses, reconciling bank accounts, paying bills, reporting finances to the board, and making sure required tax filings (like the IRS Form 990 series) happen on time. It's a fiduciary role with legal responsibility attached, even for unpaid volunteers.
What is a treasurer?
A treasurer is the officer responsible for an organization's finances, usually an elected or appointed board position in a nonprofit, club, or association. They handle cash, bank accounts, financial records, and reporting, and are typically named in the organization's bylaws.
What do treasurers do day to day?
Day to day, treasurers deposit checks and cash, log transactions, pay bills, and approve small reimbursements. Monthly, they reconcile bank statements and report to the board. Annually, they file the required IRS return and, in some states, renew charitable registration.
What does a treasurer do in a club?
A club treasurer collects dues and event revenue, pays vendors and event costs, tracks a budget, and reports balances to officers or members at meetings. In booster clubs and PTOs, this also often includes handling event cash and coordinating the annual IRS filing.
What does a club treasurer do differently from a nonprofit treasurer?
Not much differently in substance, but club treasurers usually handle more physical cash (concessions, raffles, car washes) and operate with less formal infrastructure. The underlying duties, accurate records, board reporting, and timely filings, are the same.
What is Form 990?
Form 990 is the annual information return most tax-exempt organizations file with the IRS, reporting revenue, expenses, and governance details under Internal Revenue Code section 6033. It's public record, and smaller organizations may qualify to file the simpler 990-EZ or 990-N instead.
What is a 990 tax form used for?
It lets the IRS and the public verify that a tax-exempt organization is operating consistently with its exempt purpose. It reports where money came from, where it went, and answers governance questions, functioning more as an accountability document than a tax bill.
What is the 990-N and who has to file it?
Form 990-N, the e-Postcard, is the simplified annual filing for organizations with gross receipts normally $50,000 or less. It must be filed electronically, asks only basic identifying information, and has no paper option, according to IRS guidance on annual exempt organization returns.
What happens if a nonprofit doesn't file its 990 for three years?
The IRS automatically revokes the organization's tax-exempt status after three consecutive years of missed required filings. The organization then appears on the IRS's public list of revoked entities, and donations made afterward generally aren't tax-deductible until status is reinstated.
Does a small booster club or PTO have to file taxes?
Yes, generally. Even tax-exempt organizations with very low revenue must file an annual return with the IRS, usually the Form 990-N if gross receipts are $50,000 or less. Confirm your specific requirement with irs.gov, since group exemptions and state rules can add wrinkles.
Who does the treasurer report to?
The treasurer reports to the board of directors or, in a club setting, to the officers and general membership. The board in turn is accountable to the state and the public for how the organization's funds are used, so the treasurer's reports should get real scrutiny, not a rubber stamp.
What financial controls should a volunteer treasurer set up?
At minimum: two signers on the bank account, two people counting event cash together, monthly reconciliation reviewed by someone other than the treasurer, and receipts required for all reimbursements. These basic steps close off most common opportunities for errors or fraud in volunteer-run organizations.
What should a new treasurer do first when taking over the books?
Pull the last 12 months of bank statements, the most recently filed IRS return, and the bylaws. Then check the IRS Tax Exempt Organization Search tool to confirm the organization's exempt status is current and see its filing history before doing anything else.
Is a treasurer personally liable for a nonprofit's finances?
Treasurers generally act as fiduciaries and can face personal exposure for gross negligence or willful misconduct in some states, though many nonprofit board members receive some liability protection under state volunteer protection statutes. This isn't legal advice; confirm your specific exposure with a licensed attorney in your state.
Sources
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Gross receipts threshold of $50,000 or less for Form 990-N eligibility, e-filing requirement, and general filing deadline
- IRS, About Form 990: Form 990 purpose and statutory basis under section 6033
- IRS, Which Forms Do Exempt Organizations File: Gross receipts and total assets thresholds distinguishing 990-N, 990-EZ, and full 990
- IRS, Automatic Revocation of Exemption: Organizations failing to file for three consecutive years automatically lose tax-exempt status
- IRS, Tax Exempt Organization Search: Public tool to check an organization's exempt status, filing history, and revocation status
- IRS, Revenue Procedure 2014-11: Procedures for retroactive reinstatement of tax-exempt status after automatic revocation, including streamlined reinstatement for 990-N and 990-EZ filers