A board of directors makes use of numerous documents to perform its duties. They cover legal requirements as well as internal guidelines and policies. To make the best decisions, the board must have access and precise information.
It is crucial that any non-profit organization has the right document for its board to ensure that it is successful. A board can become bogged down in administrative tasks without the right materials and lose focus on the strategy. It’s essential to keep these five documents available in order to ensure that your board is fulfilling its fiduciary responsibility of accountability.
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 needed for boards to make informed decisions. Board documents must be concise, clear and comprehensive. This is a combination of three C’s:
Financial Statements
Board members need a picture of the financial health of the company that is easy to read. This will allow them to know what the company has and the amount of cash on hand and what expenses have been approved by the board. The board must be informed about the company’s finances to ensure that they can ask the pertinent questions at meetings and oversee the CEO for financial accountability.