Policy: Document Retention and Destruction
- 1 Purpose
- 2 Document Retention
- 3 Electronic Documents and Records
- 4 Emergency Planning
- 5 Document Destruction
- 6 Compliance
- 7 References
- 8 Date adopted
In accordance with the Sarbanes-Oxley Act, which makes it a crime to alter, cover up, falsify, or destroy any document with the intent of impeding or obstructing any official proceeding, this policy provides for the systematic review, retention, and destruction of documents received or created by the Red Mountain Makers in connection with the transaction of organization business. This policy covers all records and documents, regardless of physical form, contains guidelines for how long certain documents should be kept, and how records should be destroyed (unless under a legal hold). This policy is designed to ensure compliance with federal and state laws and regulations, to eliminate accidental or innocent destruction of records, and to facilitate the Red Mountain Maker's operations by promoting efficiency and freeing up valuable storage space.
Red Mountain Makers follows the document retention procedures outlined below. Documents that are not listed, but are substantially similar to those listed in the schedule, will be retained for the appropriate length of time.
|Annual reports to Secretary of State/Attorney General||Permanent|
|Articles of incorporation||Permanent|
|Board meeting and committee Minutes||Permanent|
|Fixed asset records||Permanent|
|IRS Application for Tax-Exempt Status (Form 1023)||Permanent|
|IRS determination letter||Permanent|
|State sales tax exemption Letter||Permanent|
|Contracts (after expiration)||7 years|
Accounting and Corporate Tax Records
|Annual audits and financial statements||Permanent|
|IRS Form 990 tax returns||Permanent|
|General ledgers||7 years/Permanent - decision to be made|
|Business expense records||7 years|
|IRS Forms 1099||7 years|
|Journal entries||7 years|
|Sales records (concessions, gift and supply shop)||5 years|
|Petty cash vouchers||3 years|
|Cash receipts||3 years|
|Credit card receipts||3 years|
|Check registers||7 years/permanent - to be decided|
|Bank deposit slips||7 years|
|Bank statements and reconciliation||7 years|
|Electronic fund transfer documents||7 years|
Payroll and Employment Tax Records
|State unemployment tax records||Permanent|
|Earnings records||7 years|
|Garnishment records||7 years|
|Payroll tax returns||7 years|
|W-2 statements||7 years|
Employee Records (not that we have any!)
|Employment and termination agreements||Permanent|
|Retirement and pension plan documents||Permanent|
|Records relating to promotion, demotion or discharge||7 years|
|Accident reports and worker's compensation records||5 years|
|Salary schedules||5 years|
|Employment applications||3 years|
|I-9 forms||3 years after termination|
|Time cards||2 years|
Donor and Grant Records
|Donor records and acknowledgement letters||7 years|
|Grant applications and contracts||7 years after completion|
Legal, Insurance and Safety Records
|Real estate documents||Permanent|
|Stock and bond records||Permanent|
|Leases||6 years after expiration|
|OSHA documents||5 years|
|General contracts||3 years after termination|
Electronic Documents and Records
Electronic documents will be retained as if they were paper documents. Therefore, any electronic files, including records of donations made online, that fall into one of the document types on the above schedule, will be maintained for the appropriate amount of time. If a user has sufficient reasons to keep an e-mail message, the message should be printed in a hard copy and kept in the appropriate file or moved to an "archive" computer. Backup and recovery methods will be tested on a regular basis.
Red Mountain Makers's records will be stored in a safe, secure and accessible manner. Documents and financial files that are essential to keep Red Mountain Makers operating in an emergency will be duplicated or backed up at least every week and maintained off-site.
Red Mountain Maker's Treasurer is responsible for the ongoing process of identifying its records, which have met the required retention period, and overseeing their destruction. Destruction of paper-based financial and personnel-related documents will be accomplished by shredding; electronic by deletion.
Document destruction will be suspended immediately, upon any indication of an official investigation or when a lawsuit is filed or appears imminent. Destruction will be reinstated upon conclusion of the investigation.
Failure on the part of employees, members and volunteers to follow this policy can result in possible civil and criminal sanctions against Red Mountain Makers and its employees, members and volunteers, and possible disciplinary action.
- National Council of Non Profits - about document retention policies
- National Council of NonProfits
- Sample policy language documents provided at Haynes Downard Nonprofit Academy training, 12 Nove 2015.
ADOPTED: General meeting, Sunday March 27, 2016 by majority vote of keyholding membership.