Smooth Transitions: Organizing Your Nonprofit Records

It is important that your organization's permanent records and financial documents be handed over to the new incoming officers. Now is the time to gather up these documents and prepare for a face-to-face meeting to help your successors get started on the right foot.

Your nonprofit's permanent records should include:

• Articles of incorporation (if your group is incorporated as a nonprofit in your state)
• Bylaws (including documentation of prior amendments)
• IRS Determination letter verifying your 501(c)(3) tax-exempt status and IRS EIN letter (Form CP575)
• State income tax exemption documents (if any)
• State sales tax exemption documents (if any)
• State fundraising registration documents (if any)
• Year-end financial report and statement

Financial records should include:

• IRS 990-series return (990N, 990EZ or full 990) – three (3) most recent returns must be publicly available upon request
• Treasurer's reports (periodic) - hold 7 years; then destroy
• Financial documents - hold 7 years; then destroy
  • bank statements and bank reconciliation reports
  • cancelled checks
  • check registers
  • invoices
  • receipts
  • cash tally sheets
  • investment statements (if any)

Other helpful documents to pass on:

• Calendar / Timeline
• Budget / Spreadsheets / Statements
• Publicity (fliers, posters, emails, etc.)
• Vendors used (w/ helpful info such as "recommended" or "do not use")
• Feedback / Suggestions for improvement
• Ideas for next year