By Diane Probst, IOM, CCE
Good Governance: Why Do You Need a Strong Record Retention Policy?
One of the most common questions I receive when working with Chambers of Commerce and other
organizations—whether during strategic planning sessions, accreditation preparation, or governance training—is this:
“What should we be keeping, and for how long?”
It’s a simple question, but the answer has significant implications for your organization’s credibility, compliance, and
long-term success.
A well-defined record retention policy is more than just an administrative tool—it is a cornerstone of good governance.
Chambers and organizations operate at the intersection of business, community leadership, and nonprofit
accountability. Without clear guidelines, organizations risk everything from unnecessary clutter to serious legal and
financial exposure.
Why Record Retention Matters
First, let’s address the “why.” A thoughtful retention policy ensures that important documents are preserved while
outdated or unnecessary records are properly disposed of. This balance protects your organization in several key
ways:
● Legal Protection: Properly retained records can serve as critical documentation in audits, disputes, or
compliance reviews.
● Operational Efficiency: Staff and board members can quickly locate important information when policies are
clear and consistent.
● Historical Preservation: Chambers play a vital role in their communities, and preserving key records helps tell
that story for future leaders.
● Risk Management: Holding onto documents longer than necessary can be just as risky as discarding them too soon.
What Should Be Kept—and How Long?
A strong policy clearly outlines retention periods for different types of records. For example, foundational governance
documents—such as bylaws, board minutes, and articles of incorporation—should be kept permanently. These
documents define your organization’s identity and decision-making history.
Financial records also require careful attention. Items like annual budgets, audits, IRS Form 990s, and general ledgers
are typically maintained permanently, while supporting documents such as invoices, payroll records, and accounts
payable/receivable ledgers often have defined retention periods (commonly around seven years).
Operational records—like correspondence, contracts, insurance documents, and personnel files—vary in retention
timelines depending on their importance and potential legal implications. The key is consistency and clarity so that
staff and leadership understand what is required.
Don’t Forget Digital Records
In today’s environment, record retention isn’t just about file cabinets. Chambers must also manage electronic records
responsibly. Regular backups—ideally stored off-site or in secure cloud systems—are essential. A policy should
clearly address how digital files are stored, protected, and eventually deleted.
Good Governance Starts Here
If your Chamber or organization is working toward accreditation or simply striving to operate at a higher level, a record
retention policy is a must-have. It demonstrates professionalism, builds trust, and supports long-term sustainability.
Over the years, I’ve helped many Chambers and organizations implement practical, easy-to-follow policies that align
with best practices while remaining manageable for staff and volunteers.
If you would like a copy of the record retention policy I share with my clients, I’d be happy to provide it. Just send me
an email here, and I’ll make sure you receive it.
Strong organizations are built on strong systems—and this is one place where
