Records Retention Schedule
Do you know how long you should keep contribution records? How about past employee records?
Church Accounting Package
A set of 4 ebooks that covers the following topics...
- Fund Accounting Examples and Explanations
- Setting up a fund accounting system
- Donation management
- Minister compensation and taxes
- Internal controls and staff reimbursements
- Much more - Click here for details
The following is partial lists of recommended records retention
Many churches and nonprofits organizations will keep many of
these documents and records electronically.
The following time periods
applies to both physical and electronic documents.
Permanent Records Retention Schedule:
These are records vital to your organization. Copies or originals
of some of these records (articles of incorporation, bylaws, etc.)
should be stored offsite of your church or nonprofit organization
perhaps in a secure location such as a local bank.
- Corporate records and documents such as articles of incorporation,
bylaws, annual corporate reports, corporate seals, minute books, signed
minutes of the Board and all committees
- Licenses and permits
- Property records and documents such as property deeds, assessments, and rights of way
- Property Insurance policies
- Audit reports
- Financial Statements
- General Ledgers
- Contribution records
- Documents evidencing terms, conditions, or restrictions on gifts
- Tax-exemption documents and related correspondence
- IRS rulings
- Tax returns-income, franchise, property
- Annual Information returns-federal and state
- IRS or other government audit records
Notice: Retention period for sales taxes and property taxes are determined by state law. A local CPA or attorney should be consulted.
Temporary Records Retention Schedule:
The retention period for the following documents and records is 7 years unless otherwise stated.
- Accounts payable and accounts receivable ledgers and schedules
- Bank statements and canceled checks
- Notes receivable ledgers and schedules
- Employee expense reports
- Investment records (7 years after sale of investment)
- Annual audit records, including workpapers and other documents that related to the audit (7 years after the completion of the audit)
- Contracts and related correspondence (7 years after
expiration or termination; however, some states may require longer
retention period for specific types of contracts: Consult a local
- Excise tax records
- Tax bills, receipts, statements
- Tax workpaper packages-originals
- Sales/use tax records
- Payroll tax records
- Payroll registers
- Personnel records such as commissions, bonuses, incentives, and awards
- Payroll documents such as: payroll deductions; W-2 and W-4; and garnishments, assignments, attachments. (Termination plus 7 years)
- Time cards/sheets – (2 years)
- Employee personnel records-(6 years after separation)
Notice: Retention period for employment and employment
tax-related documents may vary for different states. A local CPA or
attorney should be consulted.
If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.
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