A board of directors utilizes a variety of documents to fulfill its responsibilities. These include legal requirements, as well as internal guidelines and policies. To make the best decisions, a board should have access to all and precise information.
It is crucial that a non-profit organization has proper document for its board to ensure that it is successful. Without the right documents the board could get caught up in administrative work and lose focus on strategic growth. To ensure that your board meets its fiduciary duty of accountability, it’s essential to keep these five key documents on hand:
Board papers are the documentation that board members review before and during the board meeting. They are crucial because they provide the context and background that enables boards to make informed decisions. Board papers should be concise, clear and thorough. This is a combination of three C’s:
Financial Statements
Board members need a picture of the financial health of the business that is simple to comprehend. This will allow them to understand what the company owns and the amount of cash available, and the amount of expenses that have been approved by the board. The board needs to be knowledgeable about the company’s finances, so they can ask right questions during meetings and also supervise the CEO’s financial SaaS software reporting.