A board of directors rely on a variety of documents in order to fulfill its duties, which range from legal requirements to internal guidelines and policies. In order to take effective decisions, directors require access to concise, clear and complete information.
It is crucial that a non-profit organization has the right documents for its board to ensure success. Without the proper materials, a board can be overloaded with administrative tasks and lose the focus of Click This Link swrc2.info strategic growth. To ensure that your board is meeting its fiduciary obligation of accountability, it’s vital to keep these five key documents in the right place:
Board papers are the documents that board members review before and during meetings. These documents are essential because they provide the background and context that allow boards to make informed decisions. Board documents should be short, concise and clear. This is the result of three C’s:
Financial Statements
Board members need a quick and easy 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 familiar with the financials of the company to be able to ask the pertinent questions at meetings, and monitor the CEO’s financial accountability.
