Records Retention Policy

In compliance with the Sarbanes‐Oxley Act, which makes it a crime to alter, cover-up, falsify, or destroy any document with the intent of impeding or obstructing any official proceeding, this policy provides for the systematic review, retention, and destruction of documents received or created by Calvary Road Ministries (CRM) pertaining to the transaction of CRM’s business. This policy covers all hard copy and electronic records and documents, regardless of physical form, contains guidelines for how long certain documents must be kept, and how records should be destroyed (unless under a legal hold). The policy is designed to ensure compliance with federal and state laws and regulations, to eliminate accidental or innocent destruction of records, and to facilitate CRM’s operations by promoting efficiency and freeing up valuable storage space.

Policy

General Records

General records should not be kept if they are no longer needed for the CRM’s operations or required by law. Unnecessary records should be eliminated from the files. The cost of maintaining records is an expense that can grow unreasonably if good housekeeping is not performed. Numerous records also make it more difficult to find pertinent records.

From time to time, CRM may establish retention or destruction policies or schedules for specific categories of records to ensure legal compliance and accomplish other objectives, such as preserving intellectual property and cost management. Several categories of documents that warrant special consideration are identified below. While minimum retention periods are established, the retention of the documents identified below and of documents not included in the identified categories should be determined primarily by the application of the general guidelines governing document retention, the litigation exception below, and any other pertinent factors.

Litigation Exception for Relevant Documents

CRM expects its Officers, Trustees, agents, and representatives to comply fully with any published records retention or destruction policies and schedules except that if a CRM Officer, Trustee, agent, or representative reasonably believes and/or is informed by CRM that certain CRM records are relevant to litigation, or potential litigation, then such records must be preserved until it is determined that they are no longer needed. This exception supersedes any previously or subsequently established destruction schedule for such records.

Minimum Retention Periods for Specific Categories

Organizational Documents. Organizational records include CRM’s Charter, Bylaws and IRS Form 1023, Application for Tax Exempt Status, IRS Determination Letter, sales tax exemption letter, annual reports to the Secretary of State, depreciable asset records and depreciation schedules, and other related records should be retained permanently. IRS regulations require Form 1023 and the IRS Determination Letter to be available for public inspection upon request.
Tax Records. Tax records include documents pertaining to CRM’s accounting and finances, donor records and acknowledgment letters, payroll records, payroll tax returns, and other related documents and information should be retained for at least seven (7) years from the date the applicable return is filed. The annual IRS Form 990 should be retained permanently and posted on the CRM website.
Employment Records/Personnel Records. State and federal statutes require CRM to maintain certain recruitment, employment, and personnel documents and information. As required by applicable state and/or federal statutes, CRM also should maintain personnel files containing performance reviews and related documents, any complaints brought against CRM or individual employees, and any actions taken by or against CRM personnel. Employment applications should be retained for three (3) years. Retirement and pension records should be kept permanently. Other employment and personnel records should be retained for seven (7) years.
Board and Board Committee Minutesand Materials. Board meeting minutes should be retained in perpetuity. Committee minutes and other Board and Committee materials should be kept for at least three (3) years.
Press Releases/Public Filings. Permanent copies of all press releases and publicly filed documents should be retained for at least seven (7) years, so CRM may be able to test the accuracy of any document a member of the public could theoretically produce against CRM.
Legal Files. Legal files should be maintained for ten (10) years.
Marketing and Sales Documents. Marketing and sales documents should be kept for three (3) years. However, marketing and sales documents pertaining to a specific agreement should be kept for at least three (3) years beyond the life of such agreement.
Development/Intellectual Property and Trade Secrets. Development documents are often subject to intellectual property protection in their final form (e.g., patents and copyrights). Development documents also are protected as trade secrets where CRM (a) derives independent economic value from the secrecy of the information, and (b) has taken affirmative steps to keep the information confidential. All development/intellectual property and trade secret documents should be kept for at least the life of such intellectual property.
Contracts. Final, execution copies of all contracts made by CRM should be retained for at least seven (7) years beyond the term of such contracts.
Correspondence. Unless correspondence falls under another category listed elsewhere in this Policy, correspondence should be saved for three (3) years.
Banking and Accounting. Accounts payable and receivable ledgers and schedules should be kept for seven (7) years. Bank reconciliations, bank statements, deposit slips, cancelled checks, and credit card statements should be kept for three (3) years. Inventories of products, materials, supplies, and related invoices should be kept for seven (7) years.
Insurance. Expired insurance policies, insurance records, accident reports, claims, and related documents and information should be kept permanently.
Audit Records and Financial Statements. External audit reports, reviews, and/or compilations and external and internal annual financial statements should be kept permanently.

Electronic Mail

Emails saved pursuant to this Policy should be either (i) printed in hard copy and kept in the appropriate file, or (ii) downloaded to a computer file and kept electronically or on disk as a separate file. The retention period depends upon the subject matter of the email as covered elsewhere in this Policy.

Electronic Documents and Records

Electronic documents and records must be retained as if they were paper documents. Thus, any electronic documents and records in the above-listed record categories must be maintained for the corresponding appropriate amount of time. If there is a sufficient reason to keep an email message, it should be printed in hard copy and kept in the appropriate file or moved to an “archive” computer file folder. Backup and recovery methods will be tested on a regular basis.

Emergency Planning

CRM’s records will be stored in a safe, secure, and accessible manner. Duplicate documents and financial records essential to keep CRM operating in an emergency will be always maintained.

Document Destruction

The CRM Treasurer (in consultation with the President and Secretary) is responsible for periodically identifying the CRM records that have met the required retention period and overseeing their destruction. CRM records will be destroyed by shredding.

Document destruction will be suspended immediately notice of an official investigation or when a lawsuit is filed or is determined to be imminent. Destruction will be reinstated upon conclusion of the investigation and/or litigation (at the direction of counsel).

Compliance

Failure to follow this Policy could result in possible civil or criminal sanctions against CRM and corresponding disciplinary action against responsible individuals. The Treasurer (in consultation with the President, CRM’s outside certified public accounting firm, and legal counsel, when necessary) to ensure that this Policy complies with existing, new, or revised state and federal statutes and regulations.

Approved and adopted by the CRM Board of Directors on October 15, 2023.