Legacy Haven Academy Document Retention and Destruction Policy

Article I: Introduction

Legacy Haven Academy Foundation (the "Academy"), an educational nonprofit organization dedicated to providing mentorship, academic support, and holistic development for orphaned and homeless youth ages 10-18, is committed to maintaining the integrity, accuracy, and accessibility of its records. This Document Retention and Destruction Policy (the "Policy") establishes guidelines for the retention and destruction of the Academy’s documents and records to ensure compliance with applicable federal, state, and local regulations, including those from the Internal Revenue Service (IRS), the Arizona Revised Statutes (ARS), and Mohave County records management standards. The Policy promotes efficient records management, minimizes risk of inadvertent destruction of important documents, and supports the Academy’s mission of fostering resilient, purpose-driven lives for its students (Legacy Haven Academy, n.d.).

As the Academy is not yet a 501(c)(3) tax-exempt organization, this Policy aligns with IRS requirements applicable to nonprofit organizations pending tax-exempt status, ensuring readiness for future compliance (Internal Revenue Service, 2018a). Adherence to this Policy is mandatory for all staff, volunteers, board members, and contractors. Violations may result in disciplinary action, up to and including termination.

Article II: Purpose

The purpose of this Policy is to:

• Ensure the Academy retains records for as long as legally required to demonstrate compliance with financial reporting, grant obligations, and operational accountability, and to prepare for anticipated 501(c)(3) status (Internal Revenue Service, 2018a).
• Facilitate the timely and secure destruction of obsolete records to reduce storage costs, protect privacy, and mitigate risks associated with data breaches.
• Align with best practices for nonprofit governance, including handling of electronic records and litigation holds (Internal Revenue Service, 2008; National Council of Nonprofits, n.d.).
• Comply with Arizona nonprofit corporate recordkeeping requirements under ARS § 10-11601, which mandates maintenance of accurate books, minutes, and member records, and general state retention guidelines for administrative and financial documents (Arizona Revised Statutes, 2024; Arizona State Library, Archives and Public Records, 2023).

This Policy does not supersede specific grantor, donor, or contractual requirements, which may impose longer retention periods.

Article III: Scope

This Policy applies to all physical, electronic, and digital records created, received, or maintained by the Academy in the course of its operations, including but not limited to financial, governance, employee, student, grant, and programmatic records. It covers records stored on premises, in the cloud, or with third-party vendors. Records related to current or anticipated litigation, audits, or investigations are exempt from destruction until cleared by legal counsel.

Mohave County-specific regulations do not impose unique retention requirements for private nonprofits like the Academy; instead, they defer to state-level schedules for administrative records (Mohave County Recorder's Office, n.d.a). If the Academy receives county grants or operates county-affiliated programs, those terms will govern.

Article IV: Responsibilities

• Board of Directors: Approve and annually review this Policy; oversee implementation.
• Executive Director: Designate a Records Manager (e.g., Office Manager) to administer the Policy; ensure training for staff.
• Records Manager: Maintain the retention schedule; coordinate destruction; monitor compliance; issue litigation holds.
• All Personnel: Identify and classify records; suspend destruction during holds; report concerns to the Records Manager.
• Legal Counsel: Advise on holds and exceptions.

Training on this Policy will be provided annually and upon onboarding.

Article V: Retention Schedule

The following list outlines minimum retention periods based on IRS guidelines, ARS requirements, Arizona general retention schedules (applicable to administrative functions), and nonprofit best practices. Periods begin from the end of the fiscal year (June 30) in which the record was created or the event occurred, unless otherwise noted. "Permanent" records must be retained indefinitely or transferred to archives. As the Academy is not yet 501(c)(3) exempt, records related to its pending application (e.g., Form 1023) are prioritized for permanent retention to support the application process.

• Governance/Corporate Records: Articles of incorporation, bylaws (with amendments), IRS Form 1023 application and related correspondence, board/committee minutes and resolutions, annual reports to Arizona Secretary of State, organizational charts/policies. Retention: Permanent (IRS, 2018a; Arizona Revised Statutes, 2024).
• Financial and Tax Records: Annual financial statements, general ledgers, depreciation schedules, bank statements/reconciliations, invoices/receipts, petty cash vouchers, 1099s/W-2s, sales records (e.g., fundraising events). Retention: Permanent for financial statements; 7 years for others (Internal Revenue Service, 2018a; Arizona Department of Revenue, n.d.).
• Employment and Payroll Records: Payroll registers, time/leave records, earnings/garnishment records, employment agreements, I-9 forms, accident/workers' compensation reports, training records. Retention: Permanent for agreements; 7 years for payroll/tax; 5 years for accidents/training; 3 years after termination for I-9/applications (Internal Revenue Service, 2018a; Arizona State Library, Archives and Public Records, 2023).
• Grant and Donor Records: Grant applications/contracts, donor acknowledgments, contribution records, unsuccessful applications. Retention: 7 years after completion for funded; 5 years for unsuccessful; 3 years for donor letters (Internal Revenue Service, 2018a; Arizona State Library, Archives and Public Records, 2023).
• Student and Program Records: Student files (enrollment, progress reports, counseling notes), program evaluations, activity/performance reports. Retention: 7 years after student graduates/ages out (or until age 21 + statute of limitations); 3 years for routine reports (National Council of Nonprofits, n.d.; Arizona State Library, Archives and Public Records, 2023).
• Contracts and Legal Records: Contracts/leases (non-construction), insurance policies, legal correspondence, copyright/trademark registrations, environmental studies. Retention: 7 years after expiration/termination; Permanent for policies/IP (Internal Revenue Service, 2018a; Arizona Revised Statutes, 2024).
• Facilities and Safety Records: Construction/as-built plans, maintenance logs, fire safety inspections, environmental (e.g., asbestos) records. Retention: Permanent for historical plans; 9 years post-construction; 50 years for environmental; 5 years for inspections (Arizona State Library, Archives and Public Records, 2023).
• Administrative Records: General correspondence, policies/procedures, training content, public records requests, transitory records (e.g., drafts). Retention: 3 years after administrative value; Permanent for policies (Arizona State Library, Archives and Public Records, 2023; Arizona Revised Statutes, 2024).
• Electronic/IT Records: Emails, backups, data entry forms, surveillance recordings. Retention: Same as paper equivalent; 14 days for surveillance unless needed (Internal Revenue Service, 2008; Arizona State Library, Archives and Public Records, 2023).

Article VI: Destruction Procedures

• Eligible Records: Only records past their retention period and not under hold may be destroyed.
• Methods: Secure shredding for paper (on-site or certified vendor); permanent deletion/wiping for electronic (using NIST standards); degaussing for media.
• Documentation: The Records Manager will maintain a log of destructions, including date, description, method, and witnesses.
• Litigation Holds: Upon notice of potential litigation/audit, the Records Manager will notify all personnel to suspend destruction. Holds remain until released by counsel.

Article VII: Electronic Records

All electronic records (e.g., emails, databases, cloud files) are subject to this Policy. The Academy will use secure systems with backups, access controls, and regular audits to ensure integrity (Internal Revenue Service, 2008). Emails with substantive content are retained per category above; routine emails may be deleted after 3 years.

Article VIII: Compliance and Review

The Executive Director will report annually to the Board on compliance. This Policy will be reviewed annually or upon regulatory changes. Questions should be directed to the Records Manager.