A board of directors rely on a variety of documents to carry out its responsibilities, from legal requirements to internal guidelines and policies. To make the best decisions, the board should have access to all, accurate and concise information.
Having the right board documents is crucial for any non-profit to be successful. A board can become distracted by administrative tasks without the right materials and lose focus on the strategy. To ensure that your board is meeting its fiduciary obligation of accountability, it’s crucial to keep these five important documents in your possession:
Board papers are the materials that board members read prior to and during board meetings. These documents are crucial as they provide the background and context that allows boards to make informed decisions. To be effective, the board’s documents should be clear, concise and complete. They should be a combination of the three C’s of communication:
Financial Statements
Board members need a quick and easy snapshot of the company’s financial health to know what’s owned, how much cash is on hand and what expenses are authorized by the board. The board should be informed about the company’s finances, so they can ask the appropriate questions at meetings and monitor the CEO’s financial responsibility.
