Document retention policies help ensure necessary documents are properly stored and protected. A document retention policy should contain a list of documents or document categories and the length of time nonprofit organizations should retain such documents. The document retention policy should also include electronic documents and digital storage. The development and implementation of a document retention policy helps volunteers, employees, and management adhere to regulations.

Form 990

Although not required by the IRS, the annual tax return filed by nonprofit organizations, Form 990, includes a question on whether a nonprofit has adopted a written record retention policy.

There is no one template on how a document retention policy should be written. Each nonprofit organization has its own state laws, funding regulations, and set of documents. Nonprofit organizations will need to evaluate what is best for its operations. A nonprofit organization’s legal advisor can assist with the development and regular review of a document retention policy.

What to Include

The document retention policy may include documents that will be kept permanently. These documents may include:

Even with a document retention policy, a nonprofit organization may want to keep certain documents for the sake of history or institutional memory.

Please reach out to a member of KT’s Nonprofit team if you or your organization have any questions on document retention.