Active Field
From Charitylog Manual
If an organisation/person has the "Active" field on their record set to "No", then that organisation/person will be hidden from general searches, unless you select to search both active and inactive. They can be made active again.
When made inactive the record will then go to the termination screen to end the projects.
What about reports?
When people are made inactive, their linked data still displays in reports. However, the filters for some reports appear with the option to include/exclude inactive people, and this box is usually defaulted to "exclude" - so making people inactive may remove them from reports that users are running without them realising.