A board of directors relies on several types of documents to perform its responsibilities, from legal requirements to internal guidelines and policies. To make the best decisions, boards must have access accurate, precise and concise information.
It is vital that every non-profit organization has the right documents for the board to ensure its success. Without the proper documents, a board can https://swrc2.info/ be caught up in administrative work and lose focus on strategic growth. To ensure that your board is performing its fiduciary obligation of accountability, it’s crucial to keep these five essential documents in the right place:
Board papers are the material that board members go through prior to and during the board meeting. They are crucial because they provide the background and context that allow boards to make informed decisions. To be effective, board documents should be clear, concise and complete. They should be a combination of the three C’s of communication:
Financial Statements
Board members need a quick and easy visual representation of the company’s financial health to understand what is owned, how much cash is on hand and what expenditures are authorized by the board. The board should be aware of the company’s finances, so that they can ask the pertinent questions at meetings and supervise the CEO’s financial accountability.
