A board of directors rely on various types of documents to carry out its duties, ranging from legal requirements to internal policies and guidelines. In order to make sound decisions, directors must have access to comprehensive detailed, accurate and clear information.

It is crucial that any non-profit organisation has the correct document for its board to ensure that it is successful. A board can get overwhelmed with administrative duties without the proper materials and lose focus on strategy. It’s crucial to keep these five documents on hand to ensure that your board is meeting its fiduciary responsibilities of accountability.

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

Financial Statements

Board members need a summary of the financial health of the business that is simple to comprehend. This will allow them to determine what the company’s assets are and the amount of cash available and what expenses have been approved by the board. The board must be knowledgeable with the company’s financials so that they can ask the appropriate questions during meetings and monitor the CEO’s financial accountability.

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