Non-profits should have a record retention policy to ensure retention of important data, as well as comply with the Sarbanes-Oxley Act of 2002, states Grant Space. A record retention policy is a written management policy that provides consistent guidance regarding retaining and destroying office documents.
The Sarbanes-Oxley Act of 2002 is a law that introduced business reforms regarding corporate responsibility, states the U.S. Securities and Exchange Commission. The law is designed to reduce corporate accounting fraud and enhance financial disclosures. All organizations, including non-profits, should create record retention policies that adhere to or go above the regulations outlined in the Act.