A guide to common practice, not legal advice. State law, grant agreements and your own bylaws can ask for longer. When in doubt, keep it.
Keep for good
| Record | Keep |
|---|---|
| Articles of incorporation, bylaws and every amendment | Permanently |
| IRS determination letter and all IRS letters | Permanently |
| EIN confirmation letter (CP 575) | Permanently |
| Board and member meeting minutes, and resolutions | Permanently |
| Year end financial statements and any audit or review reports | Permanently |
| Tax returns and 990-N confirmations | Permanently |
| Insurance policies | Permanently |
| Deeds, property records and leases for property the club owns | Permanently |
Keep for a set time
| Record | Keep | Why |
|---|---|---|
| Bank statements, deposit records and reconciliations | 7 years | Common practice |
| Receipts, invoices and paid bills | 7 years | Common practice |
| Donation records and copies of acknowledgment letters | 7 years | Common practice |
| Employment tax records, if the club has employees | At least 4 years | IRS |
| Contracts and agreements | 7 years after they end | Common practice |
| Grant files | As the grant agreement says, often 3 years or more after it closes | The grant |
| Membership applications and old member lists | While useful, then shred | Privacy |
| Signed conflict of interest statements | 7 years | Common practice |
Where the numbers come from
- The IRS says to keep tax records for 3 years in most cases, 6 years if income was underreported by more than 25 percent, 7 years for a claim for a bad debt or worthless securities, and at least 4 years for employment tax records. See How long should I keep records?
- Keeping financial records for 7 years is a widely used habit that covers those periods. It is common practice, not an IRS rule.
- The National Council of Nonprofits lists the records that should be kept permanently in its guide to document retention policies.
Good habits
- Keep records in a shared club folder, never only on one person's laptop.
- Shred paper records that hold personal or bank details when their time is up.
- Stop all throwing away if the club expects an audit, an IRS question or a lawsuit.
- Write the schedule down and have the board adopt it. The Form 990 asks larger organizations whether they have one.