To Keep or Not To Keep… That Is the Question
DATE
Sep 09 2025 17:05
AUTHOR
Team Attolero
When it comes to nonprofit record-keeping, one of the most common questions we hear is: “Do I need to keep this receipt or document?” The truth is, holding on to everything can quickly overwhelm your filing system, but discarding too much may leave you unprepared for audits, donor questions, or compliance reviews. Striking the right balance is essential for efficiency, transparency, and peace of mind.
As a best practice, nonprofits should always keep documents tied to financial transactions, compliance, and donor contributions.
This includes:
- receipts for expenses
- bank statements
- payroll records
- grant agreements
- donation acknowledgment letters.
Think of it this way: if a document supports a number on your financial statements or tax return, it belongs in your “keep” pile. The IRS generally recommends holding records for at least seven years, though some items—like Articles of Incorporation, exemption letters, or board meeting minutes—should be kept permanently.
On the flip side, not every scrap of paper needs to stay in your files. Duplicates, informal notes, and routine communications (like scheduling emails) can usually be discarded once their purpose has been served. For example, a receipt for office supplies already captured in your accounting system doesn’t need to be saved twice. By creating a clear “retain versus discard” policy, you can keep your storage lean while ensuring compliance. Digital systems make this process easier—scanning receipts and organizing them in cloud folders or your accounting software reduces physical clutter while preserving access.
The bottom line? A well-organized nonprofit knows what to keep, what to let go, and where everything lives. Establishing clear record retention guidelines—and training staff and board members to follow them—protects your organization from risk while keeping operations running smoothly.
