Five Types of Board Documents

A board of directors makes use of various documents in order to fulfill its duties. These range from legal requirements to internal guidelines and policies. To be able to make informed decisions, the board must have access to concise, clear and complete information.

It is crucial that a non-profit organization has the proper board documents to ensure success. A board can become distracted by administrative tasks without the appropriate materials and lose focus on the strategy. To ensure that your board is performing its fiduciary obligations of accountability, it’s important to keep these five crucial documents in the right place:

Board papers are the materials that board members read prior to and during board meetings. These documents are important because they provide the background and context that allow boards to make informed decisions. To be effective, boards’ documents must be concise, clear and complete. They should be a combination of the three C’s of communication:

Financial Statements

Board members need a picture of Board Report the financial health of the business that is easy to read. This will help them comprehend what the company’s assets are, how much cash is in the bank and the amount of expenses that have been approved by the board. The board needs to be informed about the company’s finances so that they can ask the right questions during meetings and also supervise the CEO for financial accountability.