A board of directors employs various documents to fulfill its responsibilities. They range from legal requirements to internal guidelines and policies. In order to effectively make decisions, the board must have access to concise, clear and you can try here swrc2.info/what-is-a-board-report/ complete information.
The proper board document is essential for any non-profit organization to succeed. Without the proper documents the board could get overwhelmed with administrative duties and lose focus on growth strategies. It’s vital to have these five documents available to ensure that your board is meeting its fiduciary obligation of accountability.
Board papers are the materials that board members read prior to and during board meetings. These documents are essential because they provide background and context that assists boards in making informed decisions. To be effective, board papers should be concise, clear and complete – a blend of the three C’s of communication:
Financial Statements
Board members need an easy-to-read picture of the company’s financial health to be aware of what is owned, how much cash is on hand and what expenses are approved by the board. The board needs to be informed about the company’s finances so that they can ask the pertinent questions at meetings and oversee the CEO for financial accountability.
