A board of directors relies on a variety of documents to fulfill its duties, which range from legal requirements to internal policies and guidelines. To make effective decisions, the board must have access to concise, clear and complete information.
It is crucial that a non-profit organization has proper board documents to ensure success. A board can become distracted by administrative tasks without the appropriate materials and lose focus on strategy. It’s vital to keep these five documents readily https://swrc2.info/learn-how-to-use-board-portal-by-following-these-5-simple-instructions/ available to ensure that your board is fulfilling its fiduciary obligation of accountability.
Board papers are the material that board members read prior to and during the meeting. These documents are essential because they provide background and context that aids boards in making informed decisions. To be effective, board papers should be clear, concise and complete – a combination of the three C’s of communication:
Financial Statements
Board members need an easy-to-read overview of the financial health of their company to be aware of what is owned, how much money is available and what expenses are authorized by the board. The board should be knowledgeable about the company’s financials so they can ask the right questions during meetings and also supervise the CEO for financial accountability.
