When or Do I Get to Throw It Away???
Document Destruction
The Sarbanes-Oxley Act addresses the destruction of business
records and documents and turns intentional document destruction into a process
that must be carefully monitored.
Nonprofit organizations should have a written, mandatory
document retention and periodic destruction policy. Policies such as this will
eliminate accidental or innocent destruction. In addition, it is important for
administrative personnel to know the length of time records should be retained
to be in compliance.
The following table provides the minimum requirements.
This information is provided as guidance in determining
your organization’s document retention policy.
Type of Document Minimum Requirement
Accounts payable ledgers and schedules 7 years
Audit reports Permanently
Bank Reconciliations 2 years
Bank statements 3 years
Checks (for important payments and purchases) Permanently
Contracts,
mortgages, notes and leases (expired) 7 years
Contracts (still in effect) Permanently
Correspondence (general) 2 years
Correspondence
(legal and important matters) Permanently
Correspondence
(with customers and vendors) 2 years
Deeds, mortgages, and bills of sale Permanently
Depreciation Schedules Permanently
Duplicate deposit slips 2 years
Employment applications 3 years
Expense Analyses/expense distribution schedules 7 years
Year End Financial Statements Permanently
Insurance Policies (expired) 3 years
Insurance records, current accident
reports, claims, policies, etc. Permanently
Internal audit reports 3 years
Inventories
of products, materials, and supplies 7 years
Invoices
(to customers, from vendors) 7 years
Minute books, bylaws and charter Permanently
Patents and related Papers Permanently
Payroll records and summaries 7 years
Personnel files (terminated employees) 7 years
Retirement and pension records Permanently
Tax returns and worksheets Permanently
Timesheets 7 years
Trademark
registrations and copyrights Permanently
Withholding tax statements 7 years
©2004 National Council of Nonprofit Associations, www.ncna.org
May be duplicated for non-commercial use, with attribution, by
charitable organizations.
The National Council of Nonprofit Associations (NCNA) is the network of state and
regional nonprofit associations serving over 22,000 members in 46 states and the
District of Columbia. NCNA links local organizations to a national
audience through state associations and helps small and mid-sized nonprofits:
manage and lead more effectively; collaborate and exchange solutions; save money
through group buying opportunities; engage in critical policy issues affecting
the sector; and achieve greater impact in their communities.
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