A board of directors utilizes numerous documents to carry out its responsibilities. These vary from legal requirements to internal guidelines and policies. To make informed decisions, a board must have access, accurate and concise information.
The right board documents is essential for any non-profit organization to be successful. Without the right documents, a board can be overwhelmed with administrative duties and lose the focus of strategic growth. To ensure that your board is fulfilling the fiduciary responsibility of accountability, it’s essential to keep these five important documents in the right place:
Board papers are the documents that board members read before and during board meetings. These documents are vital because they provide background and context that helps boards make informed decisions. Board documents must be concise, clear and thorough. This is a combination of three C’s:
Financial Statements
Board members need an easy-to-read overview of the financial health of the company to determine what’s owned, how much money is on hand and what expenses are approved by the board. The board must swrc2.info be knowledgeable about the company’s finances, so they can ask pertinent questions at meetings and supervise the CEO’s financial reporting.