document-retention-policy

name	document-retention-policy
title	Document Retention Policy (Nonprofit)
description	Drafts board-adoptable document retention policies for nonprofit organizations with IRS-grounded retention schedules, destruction protocols, and litigation hold procedures. Use when creating retention policies, records management governance, document destruction schedules, or compliance frameworks for 501(c)(3) and other tax-exempt entities.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/document-retention-policy
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	tax
language	en

Document Retention Policy (Nonprofit)

Drafts a board-adoptable document retention policy with legally grounded retention schedules, destruction protocols, and litigation hold procedures for nonprofit organizations.

Prerequisites

Gather before drafting:

• Organization details — name, state of incorporation, operating states, EIN, tax-exempt type
• Record inventory — types and volume (paper and electronic)
• Industry context — mission area for sector-specific regulations (healthcare, education, etc.)
• Federal grant status — whether org receives federal funds (triggers 2 CFR Part 200)
• Existing policies — any current retention or records management documents

Quick Start

1. Collect prerequisites above
2. Draft header block: policy title, effective date, version, board resolution reference, chair signature line
3. Define scope: all personnel, all formats, adopted by board resolution
4. Build retention schedule using the table below, adjusted for state requirements
5. Add storage, destruction, litigation hold, and roles sections
6. Close with review cadence and adoption block

Policy Sections

Scope

Applies to all employees, officers, directors, volunteers, and contractors. Governs all records in any format (paper, electronic, cloud).

Retention Schedule

Minimum periods — adjust upward for state-specific requirements.

Category	Examples	Minimum Retention	Authority
Tax Returns & 990s	Form 990, 990-T, schedules	Permanent	IRS Rev. Proc. 98-25
Tax Supporting Docs	GL, receipts, donor records	7 years	IRC § 6501(e)
Governance	Articles, bylaws, minutes, COI disclosures	Permanent	State nonprofit corp. statutes
Audit Reports	External audit, management letters	Permanent	Best practice; grantor requirements
Bank & Financial	Statements, reconciliations, AP/AR	7 years	IRC § 6501; UCC § 2-725
Grant Records	Applications, reports, budgets