I don't think you can completely remove them until the financial retention period is up. However, you should be able to mark them as "inactive" which will take care of the issue of concern. Someone else will have to supply the details.
From the
Help Center comments:
I have a lot of old donor names that haven't been used for two years and more. Is there any way to delete them to clean up the donor list?
Response from FRD Support: You can go to the Finance Panel in MLS and select Add/Update Donors. Select the donor and change the status of the donor to Hidden.
In addition, during the process of closing out the year, MLS automatically removes any donors not linked to donations within the last three years. For example, when closing out 2013, any donor who has not made a donation since 2010 (no donations during 2011, 2012, or 2013) would automatically be removed from the donor list.
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