A board of directors utilizes numerous documents in order to fulfill its duties. These vary from legal requirements to internal guidelines and policies. In order to make sound decisions, directors should have access to all, accurate and concise information.
It is essential that any non-profit organisation has the correct board documents to ensure success. A board can become overwhelmed with administrative duties without the proper materials and lose focus on strategy. It is essential to have these five documents available in order to ensure that your board is meeting its fiduciary responsibilities of accountability.
Board papers are the material that board members go through prior to and during the board meeting. These documents are essential because they provide context and background information that aids boards in making informed decisions. To be effective, boards’ documents must be concise, clear and complete – a blend of the three C’s of communication:
Financial Statements
Board members require a simple visual representation of the company’s financial health to understand what is owned, how much cash is on hand and what expenses are approved by the board. The board needs to be aware of the company’s finances to ensure they can ask the right questions during meetings and monitor the CEO’s financial accountability.
