A board of directors rely on various types of documents to perform its responsibilities, from legal requirements to internal guidelines and policies. To make effective decisions, a board must have access and precise information.
Having the right board documents is crucial for any non-profit organization to succeed. A board can get bogged down in administrative tasks with no appropriate documents and lose focus on strategy. To ensure that your board is fulfilling the fiduciary responsibility of accountability, it’s important to keep these five key documents on hand:
Board papers are the documents that board members are required to read prior and during board meetings. These documents are essential because they provide the background and context that allows boards to make informed decisions. Board documents must be concise, clear and thorough. This is the result of three C’s:
Financial Statements
Board members require a quick overview of the financial health of the business that is easy to read. This will help them understand what the company owns and how much cash is in the bank and what expenses have been voted on by the board. The board needs to be familiar with the company’s finances so that they can ask the appropriate questions at meetings and also supervise the CEO’s financial accountability.
