How long does a non-profit organization have to keep its records?
March 25, 2024 | 60,00 EUR | answered by Björn Ley
Dear tax advisor,
My name is Luisa Böhm and I am a board member of a non-profit organization. In recent years, we have been extensively dealing with the question of the retention obligation for association documents. Unfortunately, we are unsure of how long we need to keep various documents such as articles of association, financial statements, donation receipts, protocols, etc.
Our current practice is to archive all documents for at least 10 years. However, we have heard that there may be differences depending on the type of documents and legal regulations. We want to ensure that we properly retain all necessary documents to avoid any problems in case of an audit by the tax office or supervisory authorities.
Therefore, my question is: How long do we, as a non-profit organization, have to retain our documents? Are there differences depending on the type of documents or are there general deadlines? Are there possibly special regulations for associations or non-profit organizations that we need to consider?
I would greatly appreciate it if you could provide us with clarity on this matter and possibly give us tips on proper document archiving.
Thank you in advance for your assistance.
Sincerely,
Luisa Böhm
Dear Mrs. Böhm,
Thank you for your inquiry regarding the storage requirements for association documents as a non-profit organization. It is very important that you address this issue in order to avoid potential problems in the event of an audit.
In general, non-profit organizations are subject to the same retention periods as other organizations. The legal basis for this can be found in the Commercial Code (HGB), the Fiscal Code (AO), and the Civil Code (BGB). According to § 147 AO, documents such as the articles of association, annual financial statements, donation receipts, protocols, etc. must be kept for at least 10 years.
However, there are differences depending on the type of documents. For example, commercial books, inventories, opening balance sheets, annual financial statements, and management reports must be kept for 6 years according to § 257 HGB. Donation receipts must also be kept for 10 years as they are considered tax documents. Minutes of member meetings should also be kept to document the decisions and resolutions of the association.
It is important as a board member to ensure that all necessary documents are properly archived. Careful and organized storage of documents is crucial to avoid difficulties in the event of an audit by the tax office or other supervisory authorities.
I recommend establishing a well-structured archiving system in which all documents are stored in accordance with legal requirements. For example, you can create folders for each year and sort the documents chronologically within them.
Additionally, you should regularly check if all required documents are complete and meet the legal requirements. If you have any uncertainties or questions about specific documents, you can consult a tax advisor or lawyer who can provide expert advice.
I hope that this information has been helpful to you and I am available to answer any further questions you may have.
Sincerely,
Björn Ley
