FAQ: How Long Should We Keep Certain Church Records?

Some churches have adopted the rule that “if it hasn’t been touched in one year, then throw it out.” None of these rules is either appropriate or desirable. It is possible to keep some records too long—well beyond what is required by law. In some cases this can result in the retention of records that might be harmful in future litigation. On the other hand, disposing of records too soon can lead to unanticipated problems—both with various state and federal government agencies and in future lawsuits.

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This software is becoming more accounting popular with churches that have tithes. Church members can easily donate by using their phones at the touch of a button. These are all documents that the IRS may require later if you experience a tax-related issue.

Best Practices for Organizing and Maintaining Financial Records

How you choose to do this depends on the size of your church and your staff. Here are some examples of ways churches can streamline this process. For permanent records, it is a good idea to have digital copies in case the originals are lost. All the documentation that you need to keep may accounting for churches be requested by the IRS.

• Receipts from donations will be documented and can be kept for later.
• This means you’ll need to find time and gain the expertise necessary to keep accurate and compliant books.
• Records management is the process of identifying and protecting evidence, which comes in the form of records.
• You can do this in a variety of ways depending on how your church runs.

Records Retained for 7 Years

• Certain church records need to be kept permanently, including corporate records and meeting minutes.
• Keep all records that support income and deductions reported on your tax returns.
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• This is something you should confirm for your state so you understand what you need to keep.

Fund accounting is a system by which an organization tracks its resource allocation by separating funds into different categories. For example, your church may use a $100 tithe to contribute to your operational costs or a specific program, like your children’s ministry. This method helps to ensure that you use resources wisely and productively across the organization’s operations.

Federal and state or provincial laws will determine how long a church should keep records. Some financial records, such as tax returns and payroll reports, need to be kept for at least several years. Well, detailed records help you monitor important church measurables like congregation attendance, online giving history, and finances. Some records need to be kept longer than others, so it’s vital to research record retention laws in your country, state, or province. Joshua Gordon is a lay-pastor, author, and editor of TheLeadPastor.com. Over the last two decades, Josh has worked closely with pastors and other christian leaders, helping them to sharpen and elevate their messages.

How to Keep Church Financial Records: A Comprehensive Guide

If more connection and wisdom is something you’d appreciate, you’ll like this. Your ministry does not necessarily need to retain every document that Bookstime comes your way, but this is an area where the saying “Better to be safe than sorry” applies. The smart strategy when it comes to your church record-keeping is to determine what you need to keep. Then devise an organized way to file and maintain the records so they are easily accessible down the road. Some retain records “forever” just in case they may be needed even though some records have not been looked at in years. Others react to growing piles of clutter by going on occasional “search and destroy” missions.