When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes.
San Francisco, CA (PRWEB) May 30, 2012
Books In Balance managing partner says, "There is no one regulation that governs document retention policies for all nonprofits. Laws relating to document retention are state-specific in many cases. In some instances, the length of time to retain a document is governed by the period that a potential claimant has to bring a claim in that state, which can differ from state to state. In addition, some nonprofits are subject to retention requirements that are specific to the type of services they provide."
IRS website explains, "A document retention and destruction policy identifies the record retention responsibilities of staff, volunteers, board members, and outsiders for maintaining and documenting the storage and destruction of the organization’s documents and records."
Books In Balance managing partner adds, "The creation of The Sarbanes-Oxley Act(SOX) prohibits the destruction of documents that are subject to review in a litigation which only further necessitates the additional rationale for every nonprofit to adopt a formal document retention policy.” Further adding, “A nonprofit organization just cannot wait until it is audited to find out about any non-compliance issues. An organization needs to be pro-active in the eyes of the IRS.”
Books In Balance creates a nonprofit retention schedule free to charge to nonprofits that can be downloaded through this release or requested via e-mail at firstname.lastname@example.org.
Books in Balance is based in San Francisco, CA and provides over 35 years’ of combined experience in accounting, bookkeeping, taxation and business management working extensively with the small to mid-size businesses and entrepreneurs to help them maintain good financial data every step of the way.
Call Books In Balance at (415) 979-0706 for more information about nonprofits or to request your free copy of Non Profit Records Retention Schedule.