Glossary
Compliance & Governance

Data Retention Policy

By: Alec Hollingsworth
Updated:  
July 16, 2025

Definition:

A Data Retention Policy outlines how long data is kept, when it is deleted, and ensures compliance and data security for nonprofits.
A Data Retention Policy is an organizational guideline that determines how long data, such as financial records, donor information, and emails, should be stored and when it should be securely deleted or archived. It ensures that data is retained for the required periods to comply with legal, regulatory, or operational needs and that unnecessary data is not kept longer than needed, reducing risks of breaches and maintaining data privacy. Nonprofits, in particular, need to manage sensitive information responsibly and demonstrate compliance with regulations such as GDPR or IRS requirements. Establishing a Data Retention Policy helps nonprofits manage resources effectively, mitigate risks, and protect stakeholder information.

Key Takeaways

  • Defines how long data should be stored
  • Supports legal and regulatory compliance
  • Protects donor and financial information
  • Reduces storage and security risks

Why It Matters

It ensures compliance, protects sensitive data, and reduces storage costs.

Real World Example

A nonprofit organization collects donor information, financial records, and volunteer data over several years. Their Data Retention Policy requires that donor financial records are kept for seven years to meet IRS regulations, while event registration data is deleted after two years. When a former donor requests deletion of their personal data, the nonprofit checks their policy and securely removes all non-essential information, retaining only what is required for compliance. This approach ensures the nonprofit meets legal obligations, maintains donor trust, and streamlines its data storage and management.

Frequently Asked Questions

What is a Data Retention Policy?

A Data Retention Policy is a set of guidelines that dictates how long an organization retains different types of data and when it should be deleted or archived.

Why do nonprofits need a Data Retention Policy?

Nonprofits handle sensitive data and must comply with legal and regulatory requirements, making a policy essential for responsible management and compliance.

How does Keela support Data Retention Policies?

Keela enables nonprofits to implement and monitor custom data retention settings, helping them stay compliant and protect sensitive information.

What are common data retention periods for nonprofits?

Typical periods include seven years for financial records and two to three years for event or donor data, depending on regulations and organizational needs.

What happens if a nonprofit does not follow a Data Retention Policy?

Noncompliance can lead to legal penalties, increased risk of data breaches, and loss of stakeholder trust.

Related Terms

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Automation Trigger in a Nonprofit CRM
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