document retention Archives » Checkbox Accounting https://checkboxaccounting.com/tag/document-retention/ Outsourced accounting services and solutions for businesses and nonprofits Thu, 10 May 2018 18:14:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Principle 5: Document Retention and Destruction https://checkboxaccounting.com/principle-5-document-retention-and-destruction/ Wed, 12 Mar 2014 11:40:44 +0000 http://www.the3bottomlines.com/?p=683 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 […]

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]]> 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 organizations.
-It is illegal to destroy any documents if the organization is expecting to be investigating or is under a current official investigation.
-The IRS Form 990 inquires if an organization has a document retention and destruction policy.

 

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