Principle 5: Document Retention and Destruction
A charitable organization should establish and implement policies and procedures to protect and preserve the organization’s important documents and business records. CORE CONCEPTS -The boards should clearly note and realize the clear difference between document destruction during an investigation vs. document purging as a normal day to day management duty. -It is important to have a schedule for document retention as a necessary tool to guarantee the retention of documents needed for any legal or business purposes. -The board should know how an official investigation is determined and how to be sure that the organization follows the laws. -An organized and efficient filing system is important for all organizations. LEGAL AND COMPLIANCE ISSUES -In Sarbaines—Oxyley Act of 2004 in Section 802 for the document and destruction clause applies to nonprofit…