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  • 1.  Timeframe needed for retaining paper backup for gifts

    Posted 07-25-2023 11:55 AM

    Hello all!

     

    We have been discussing the need to purge some of our paper backup of gifts that resides in the basement of our office as we are running out of space.  Of course, we have the electronic records for our gifts that date back to the late 1950's in our database (not including copies of checks), but we have also kept copies of paper backup for the last 20 years.  The paper backup we have kept would include our batch logs, postings and copies of checks.  Would there be any reason to keep this backup for more than seven years for individual tax auditing purposes?  We have an upcoming shredding day for which we would like to eliminate some of these paper backup documents.  I'm curious on thoughts on best practices going forward in order to eliminate some of our clutter while retraining the necessary backup information.  Any suggestions would be appreciated.

     

    Thanks!

     

    Scott

     

     

    Scott L. Billhartz '85

    Senior Director of Advancement Services and Stewardship

    McKendree University

    701 College Road

    Lebanon, IL 62254

    (618) 537-6869

    slbillhartz@mckendree.edu

    www.mckendree.edu

     

     

     

     

    Forward_1_web

     

    Providing a high quality educational experience to outstanding students.

    Academic Excellence--Engagement--Responsible Citizenship--Lifelong Learning

     

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  • 2.  RE: Timeframe needed for retaining paper backup for gifts

    Posted 07-25-2023 01:24 PM
    There is no need to retain any of those paper documents if you have electronic images.

    BTW, the statute for document retention is now three years as far as IRS material is concerned. But that's only for material that will support a tax deduction. And many years ago the IRS ruled that an electronic record - including audited financial records of your CRM - covers those requirements.

    Of course, don't do anything before talking to Counsel and your CFO. But anything over three years can certainly be destroyed. When I was at Duke in the 1990s, we retained paper backups for only one full calendar year because we had electronic images.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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