A board of directors rely on various types of documents to perform its responsibilities, ranging from legal requirements to internal policies and guidelines. To make the best decisions, boards should have access to all accurate, precise and concise information.
The right board documents is crucial for any non-profit organization to succeed. A board can get bogged down in administrative tasks without the right materials and lose focus on strategy. It’s vital to keep these five documents readily available to ensure that your board is meeting its fiduciary obligation of accountability.
Board papers are the documents that board members read prior to and during board meetings. They are crucial because they provide the background and context that allow boards to make informed decisions. Board papers must be concise, clear and thorough. This is a combination of three factors:
Financial Statements
Board members require an easy-to-read overview of the financial health of their company to determine what’s owned, how much money is in the bank and what expenses are authorised by the board. The board needs to be familiar with the company’s finances so they can ask pertinent questions at meetings and oversee the CEO’s financial responsibility.
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