A board of directors relies on various types of documents to fulfill its duties, ranging from legal requirements to internal guidelines and policies. To be able to make informed decisions, boards require access to concise, clear and complete information.

It is crucial that a non-profit organisation has the correct document for its board to ensure that it is successful. A board can become overwhelmed by administrative tasks without the appropriate materials and lose focus on strategy. To ensure that your board meets its fiduciary obligation of accountability, it’s essential to keep these five crucial documents on hand:

Board papers are the materials that board members read prior to and during board meetings. These documents are important because they provide context and background information that aids boards in making informed decisions. Board documents should be short, concise and clear. This is the result of three C’s:

Financial Statements

Board members require a snapshot of the financial health of the company that is easy to read. This will allow them to comprehend what the company’s assets are and how much cash is available, and what expenses have been voted on by the board. The board needs to be knowledgeable about the company’s finances, so they can ask appropriate questions during meetings and supervise https://swrc2.info/the-benefits-of-a-deal-room-for-investing-companies/ the CEO’s financial responsibility.