The Tennessee Nonprofit Corporation Act (T.C.A. § 48-66-101) requires nonprofit corporations to maintain specific records.

Documents the association must keep:

• Articles of Incorporation and all amendments
• Bylaws and all amendments
• Minutes of all membership meetings
• Minutes of all board meetings and committee meetings with board authority
• Written communications to all members generally
• List of current directors and officers with addresses
• Most recent annual report filed with the state

Financial records required:

• Accurate accounting records
• List of members with contact information
• Financial statements for the past three years

These records must be kept at the association's principal office (or at the registered agent's office) and made available for member inspection.

Beyond legal requirements, smart associations maintain additional records for operational and legal protection.

Governing and legal documents:

• Declaration of Covenants, Conditions & Restrictions (CC&Rs)
• Any amendments to the Declaration
• Plat maps and survey documents
• Rules and Regulations adopted by the board
• Architectural guidelines
• Legal opinions and correspondence

Operational records:

• Vendor contracts and agreements
• Insurance policies and claims history
• Maintenance records and work orders
• Architectural review applications and approvals
• Violation notices and enforcement actions
• Correspondence with owners

Financial documents:

• Annual budgets
• Monthly financial statements
• Bank statements and reconciliations
• Invoices and payment records
• Tax returns
• Audit and review reports
• Reserve studies

When in doubt, keep it. Storage is cheap compared to the cost of not having a document when you need it.

Different records have different retention needs. Here's a practical framework.

Permanent records (keep forever):

• Articles of Incorporation and amendments
• Bylaws and amendments
• Declaration and amendments
• Meeting minutes (membership and board)
• Plat maps and surveys
• Tax returns
• Annual financial statements
• Reserve studies

7-year retention:

• Bank statements and reconciliations
• General ledger and journals
• Accounts payable and receivable records
• Contracts (after expiration)
• Insurance policies (after expiration)
• Audit and review reports

3-5 year retention:

• General correspondence
• Routine operational records
• Work orders and maintenance logs
• Violation notices (after resolution)

Important note: If any record might be relevant to potential litigation, keep it regardless of standard retention periods until the matter is fully resolved.

Members have rights to inspect certain association records. Understanding these rights helps you respond appropriately to requests.

What owners can generally access:

• Articles, Bylaws, and Declaration
• Meeting minutes (membership and board)
• Financial statements
• Current budget and recent tax returns
• Membership list (with some restrictions)
• Rules and architectural guidelines

What owners typically cannot access:

• Individual owner account details (other than their own)
• Personnel records
• Attorney-client privileged communications
• Contract negotiation documents
• Executive session minutes
• Pending litigation materials

Handling access requests:

• Require requests in writing
• Specify what records are being requested
• Respond within a reasonable time (5-10 business days)
• You may charge reasonable copying costs
• Consider providing electronic copies when practical

Develop a records access policy so you handle requests consistently. Having a standard form and procedure reduces conflict.

Having records is only useful if you can find them when needed.

Physical records:

• Use a consistent filing system (chronological, by type, or both)
• Label files clearly
• Store in a secure, climate-controlled location
• Consider fireproof storage for permanent records
• Scan important originals and store copies offsite

Digital records:

• Use a cloud-based document management system when possible
• Maintain consistent folder structure
• Include dates in file names for easy identification
• Ensure regular backups
• Control access appropriately (board vs. management vs. owners)

Transition considerations:

• When board members change, ensure records are transferred
• Don't let records live only on personal devices
• Create a records inventory so everyone knows what exists and where
• Management company changes require careful records transfer

We've seen associations where records were scattered across former board members' garages, personal computers, and various email accounts. Centralizing everything saves enormous headaches.

Missing historical records:

• Contact previous board members and management companies
• Check with your attorney and CPA for copies they may have
• Recorded documents (Declaration, amendments) can be obtained from county Register of Deeds
• Document what you've done to locate missing records

Disorganized records:

• Schedule a records clean-up project
• Create categories and file documents consistently
• Scan paper records for easier searching and backup
• Consider hiring help for large backlogs

Records in private hands:

• Association records belong to the association, not individuals
• Outgoing board members should return all records
• Include record return in board member transition procedures
• If someone refuses, the association may need legal assistance to recover records