Board Meetings: The Essential Information
As a board member for a nonprofit, you have a fiduciary duty. During board meetings, you participate in decision-making that significantly impacts the organization, as well as volunteers, staff, clients, and the community served by the group.
But what information is essential to make important decisions with confidence?
It should be an institutionalized expectation of the executive director to provide the board with information that aids decision-making. Essential to every board meeting is background about any legal obligations, plans of action, and performance measurements. Providing reports, financial statements, and other records will help keep the board informed about the essentials:
Records
Institutional, legal, federal tax, insurance, and important correspondence
Annual review of Articles of Incorporation and Bylaws
Parameters for operations and board governance
Board meeting agendas and minutes
Annual completed IRS Form 990, prior to filing
Annual insurance summary page included with policy, prior to taking effect
Liability as well as Directors and Officers
Contracts, memorandums of understanding, and agreements
For independent contractors
For significant, legally binding documents, prior to taking effect
Letters from stakeholders or significant business correspondence
At the board meeting immediately following receipt or in a timely manner
Financials
Updated and provided monthly (and directly from the accounting software)
Profit and loss (income and expense) report
Reflects changes in organization's assets based on income and expense activity
Balance sheet
Reflects the organization's assets, less it's liabilities to arrive at a net asset figure, i.e. what is in the bank and what is owed
Budget to actual comparison
Tool of measurement of actual financial performance against targets
Reports
Regular, written summaries from the executive director and all committees outlining progress, proposals, successes, and challenges in fulfillment of their charge
Comparisons of target goals to actual performance
Requests to the board, with necessary background information
Recommendations to the board, with necessary background information
As a board member, when you have access to this information you are equipped to make the decisions that will impact your organization's vision, goals, and future.