A board of directors employs various documents to perform its responsibilities. These include legal requirements, as well as internal guidelines and policies. To make the best decisions, the board must have access detailed, accurate and clear information.
It is essential that any non-profit organisation has the correct documents for its board to ensure success. A board can become overwhelmed by administrative tasks with no appropriate documents and lose focus on the strategy. To ensure that your board is fulfilling its fiduciary obligations of accountability, it’s crucial to keep these five important documents on hand:
Board papers are the documentation that board members read prior to and during a board meeting. These documents are crucial as they provide the background and context that allow boards to make informed decisions. To be effective, board documents must be concise, clear and complete – a blend of the three C’s of communication:
Financial Statements
Board members require a simple snapshot of the company’s financial health to understand what is owned, how much cash is in the bank and what expenses are authorised by the board. The board should be acquainted with the financials of the company in order to ask the right questions at meetings and supervise the CEO’s financial accountability.
