A board of directors utilizes numerous documents to perform its duties. They cover legal requirements as well as internal guidelines and policies. To make informed decisions, a board must have access and precise information.
The right board documents is crucial for any non-profit organization to be successful. Without the right documents, boards can become overwhelmed with administrative duties and lose focus on growth strategies. It’s vital to have these five documents available in order to ensure that your board is meeting its fiduciary responsibilities of accountability.
Board papers are the documents that board members read prior to and during a board meeting. They are crucial because they provide background and context that helps boards make informed decisions. To be effective, board documents should be clear, concise and complete – a blend of the three C’s of communication:
Financial Statements
Board members need a summary of the financial health of the business that is easy to read. This will help them comprehend what the company’s assets are and how much cash is in the bank, and what expenses have been voted on by the board. The board should be familiar with the company’s finances to ensure that they can ask the right questions during meetings and oversee the CEO’s financial reporting.
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