As board members, we often have a vague feeling that we aren’t getting the right information about the organizations we’re serving, but at the same time we don’t really know what to ask for. For one thing, we don’t want to be deluged with tons of material that we know we won’t be able to digest. Staff, too, are often dissatisfied with what information they give to us. A common complaint: “The board says they want to know more, but when we send them information they don’t even read it!”
Here’s a suggestion for what written documents the board should have. Some of this same information should be presented and discussed at board meetings.
Compliance, financial & legal oversight
- Form 990 annually reviewed by the board president before submission, distribution to full board. Federal Form 990 is required for nonprofits with revenue of $25,000 or more per year. Board members should know that the form has been filed, and what it says to the public about the organization.
- Audit, if the organization has one: Copy of full audit to board president, treasurer, and Finance Committee. Board members are aware they can ask for full copy.
- Monthly or quarterly financial statements, showing year-to-date income and expenses compared to budget, to the Finance Committee and the full board. Organizations will choose their own appropriate set.
- Salaries, benefits and perks for the top staff (such as the top five paid staff or the director-level staff), and a salary rate chart showing the range of salaries for each category of employee: annually.
- Directors & Officers Liability Insurance, if the organization purchases it. Proof of purchase to whole board annually. In executive session, documents related to legal actions, lawsuits, or settlements
- Occasional articles about the “industry”-whether childcare, wetlands management or civil rights-articles that talk about trends in funding streams, changes in approach that are moving into the field, including articles that praise competitors/colleagues in the field.
- Articles (from journals or written internally) about the funding and political environment in which the organization works
- Periodic reports on program work, statistics, and impact
- Annual updates on clients/patrons/members: who used our services or facilities? To what degree did we reach our intended audiences?
Information that supports board cohesion and leadership
- Brief bios about board members, and updates on their professional accomplishments, personal news, and other volunteer activities
- When reporting on an item, show specific ways that board members can help (if the item is a city council hearing, asking board members to attend and speak; if the item is a large donation, asking board members who know the donor to make a thank-you phone call).
- Appreciation for individual board members
- Appreciation for the board as a whole in its governance work (such as evaluation of the executive director)