What record-keeping requirements must a nonprofit comply with?
Nonprofit organizations in California, like all organizations, must abide by certain record-keeping requirements in order to remain compliant with the law. California nonprofit organizations must keep several types of records, including financial records, such as receipts, invoices and other documents related to financial transactions; records regarding the organization’s governance, like minutes of meetings and governing documents; records about the organization’s Federal and state tax forms; and records related to the organization’s activities, such as grants and contracts. Nonprofits must also keep records related to their fundraising activities, as well as records about members, clients, and employees. Records related to fundraising activities must include information about donations and fundraising events, such as the date, amount, and name of the contributor. Records related to members, clients, and employees must include information regarding their activities, such as name and contact information, accounts or other financial documents, and contracts and agreements they have with the organization. Organizations must keep all of these records for at least seven years. If the internal revenue service or the California attorney general has requested documents, nonprofits must keep those documents until such requests have been fulfilled. In some cases, nonprofits may be required to keep records for even longer periods of time; it is important to review state and federal laws to determine any special requirements.
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