For example, records relating to wages and various federal employment taxes must generally be kept for four years. Although many foundations keep a log of all inquiries received, there is no legal requirement that the actual requests for guidelines and rejected grant proposals be retained. The argument for keeping some portion of rejected proposals is that these files allow grantmakers to compare old and new applications for funding. Additional Considerations Where records should be kept and in what form records should be stored are decisions for the foundation to make in consultation with its counsel, accountants, and information service providers. For most purposes, either photocopies or original documents are adequate.
Some records are appropriate to keep on microfiche or computer disk.
The grantmaker s available space and technology will help determine its actions. Some grantmakers worry that keeping too many documents will lead to problems. They fear that newspaper reporters may request copies of rejected grant applications or that the IRS may choose to look into transactions in years long past if the records are available. These concerns should not prevent a grantmaker from retaining records. There is no legal requirement that rejected applications be made public, and the newspaper reporter may be told that the foundation has a policy of keeping rejected applications confidential in deference to the privacy concerns of the applicants.