A board of directors relies on various types of documents to carry out its responsibilities, from legal requirements to internal policies and guidelines. In order to take effective decisions, directors require access to concise, clear and complete information.
It is essential that any non-profit organization has the right document for its board to ensure that it is successful. A board can become distracted by administrative tasks without the right materials and lose focus on strategy. It is essential to have these five documents in your arsenal in order to ensure that your board is meeting its fiduciary responsibilities of accountability.
Board papers are the materials that board members study prior to and during board meetings. These documents are crucial as they provide the background and context that allows boards to make informed decisions. To be effective, the board’s documents should be concise, clear and complete – a blend of the three C’s of communication:
Financial Statements
Board members require a quick overview of the financial health of the company that is simple to comprehend. This will help them comprehend what the company’s assets are and the amount of cash on hand, and the expenses that have been approved by the board. The board should be informed about the company’s financials so they can ask the pertinent questions at meetings and supervise the CEO’s financial responsibility.