A board of directors uses numerous documents to carry out its responsibilities. They range from legal requirements to internal guidelines and policies. To make effective decisions, boards require access to concise, clear and complete information.
The right board documents is crucial for any non-profit organization to succeed. Without the proper materials, a board can get overloaded with administrative tasks and lose focus on growth strategies. It’s vital to have these five documents on hand to ensure that your board is fulfilling its fiduciary responsibilities of accountability.
Board papers are the materials that board members study prior to and during board meetings. They are crucial because they provide the background and context that allow boards to make informed decisions. To be effective, board papers should be concise, clear and complete – a blend of the three C’s of communication:
Financial Statements
Board members require a simple picture of the financial health of their company to be aware of what is owned, how much cash is on hand and what expenditures are authorized by the board. The board must be familiar with the financials of the company to be able to ask the pertinent questions at meetings, and oversee the CEO’s financial accountability.
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