What Should Be In Our Document Retention Policy?

Introduction

A document retention policy for nonprofit organizations is crucial for maintaining transparency, ensuring legal compliance, and preserving historical records. This policy outlines how long documents should be kept, when they should be destroyed, and how they should be managed. Here's what you need to include in your policy to ensure it's comprehensive and effective.

Key Components of a Document Retention Policy

1. Purpose and Scope

• Define the Purpose: Explain why the policy exists, focusing on legal compliance, operational efficiency, and historical preservation.

• Scope: Specify which documents are covered. This could include financial records, HR files, donor information, and more.

2. Retention Periods

• Legal Requirements: Detail how long documents must be kept due to federal, state, or local laws. For instance, IRS regulations might dictate how long tax records need to be retained.

• Operational Needs: Consider how long records might be needed for operational continuity or reference.

• Historical Value: Some documents might have long-term value for the organization's history or for research purposes.

3. Categorization of Documents

• Types of Documents: List categories like financial statements, board meeting minutes, donor records, etc., with their respective retention periods.

4. Storage and Access

• Physical vs. Digital: Specify whether documents should be stored physically or digitally. Discuss security measures for each.

• Access Controls: Who can access these documents? What are the procedures for access?

5. Destruction Procedures

• Method of Destruction: Define how documents should be destroyed to ensure confidentiality, whether by shredding, digital deletion, or other secure methods.

• Authorization: Who can authorize document destruction? This should be a formal process.

6. Training and Compliance

• Employee Training: Ensure staff understands the policy. Regular training sessions can help.

• Audit Trails: Keep logs of when documents are accessed, modified, or destroyed.

7. Exceptions and Special Cases

• Litigation Holds: Procedures for suspending document destruction during legal proceedings.

• Archival Exceptions: Documents of significant historical value might need special handling.

8. Review and Update

• Periodic Review: The policy should be reviewed annually or when there are significant changes in laws or organizational structure.

Why This Policy Matters

• Legal Protection: A well-defined policy can protect your organization from legal repercussions due to document mismanagement.

• Efficiency: Knowing what to keep and what to discard saves time and space.

• Trust: Donors and stakeholders trust organizations that manage information responsibly.

Conclusion

Creating a document retention policy for your nonprofit isn't just about compliance; it's about stewardship of your organization's legacy and resources. By implementing a clear, actionable policy, you ensure that your nonprofit operates with integrity and foresight.