A board of directors employs numerous documents to carry out its duties. They cover legal requirements as well as internal guidelines and policies. In order to effectively make decisions, directors require access to concise, clear and complete information.
The proper board document is crucial for any non-profit organization to succeed. Without the proper documents, boards can become caught up in administrative work and lose the focus on strategic growth. It’s vital to have these five documents readily available in order to ensure that your board is fulfilling its fiduciary responsibility of accountability.
Board papers are the documents that board members study prior to and during board meetings. These documents are essential because they provide background and context that helps boards make informed decisions. Board documents should be concise, clear and thorough. This is a combination of three factors:
Financial Statements
Board members need a quick and easy visual representation of the company’s financial health to determine what’s owned, how much money is on hand and what expenses are approved by the board. The board must be familiar with the company’s financials so they can ask right questions during meetings and also supervise the CEO’s financial reporting.
