A board of directors uses various documents to fulfill its responsibilities. These cover legal requirements as well as internal guidelines and policies. To make effective decisions, directors require access to clear, concise and complete information.
It is essential that any non-profit organization has the right documents for the board to ensure its success. A board can get overwhelmed with administrative duties without the right materials and lose focus on the strategy. To ensure that your board meets its fiduciary duty of accountability, it’s crucial to keep these five important documents at hand:
Board papers are the materials that board members are required to read prior and during board meetings. These documents are crucial as they provide the context and background that enables boards to make informed decisions. Board papers should be concise, clear and complete. This is the result of three C’s:
Financial Statements
Board members need an easy-to-read overview of the company’s financial health to be aware of what is owned, how much cash is available and what expenses are authorised by the board. The board must be knowledgeable with the financials of the company to be able to ask the appropriate questions during meetings and oversee the CEO’s financial accountability.