Why good papers matter
Board papers help to ensure effective and efficient board meetings and well-informed decision-making. They should be clear, concise, and structured to assist decision-making while avoiding unnecessary detail.
Board members, including those in charitable entities, have a number of duties. Well-informed, well-constructed board papers will assist board members to consider what matters and make appropriate decisions.
These should be provided well before the meeting itself so they are ‘taken as read’.
What sections should be included?
Use your judgement and adjust the length and detail of the paper to suit the matter being considered.
Here are some suggestions on what to include, depending on the topic. It may be helpful to develop a board paper template to help writers.
- Consultation
Detail who wrote the paper, who else was involved, and whether any other consultation or engagement is needed, for example, with employees, iwi, funders.
- Choose the right speakers
Organise the right people to speak to the paper and ensure they understand the content and can answer questions.
- A short Introduction and purpose
Include a summary of the main points at the start and highlight key information or questions to address.
Be clear about whether the paper is for ‘information’, ‘noting’, ‘decision-making’, or ‘advice’. Set out what decision or recommendation is being proposed.
- Background
Provide essential context. Outline what is proposed and why and related issues. Using the 4Ps framework (‘Position, Problem, Possibilities, Proposal’) can be helpful. If similar topics have been discussed previously, refer to them for deeper insight. This section should summarise key points from detailed materials and allow the board to understand the current outlook, critical events and significant issues.
- Proposed activity
What action is required and what are the timelines?
- Financial summary
If a decision has a significant financial impact, provide information that allows decision-makers to understand how that would impact your organisation. Outline what alternatives were considered.
For significant investments, evaluate cash flow impacts and payback periods using methods like cost-benefit analysis, net present value, and internal rate of return. Other tools include ratio analysis, period comparisons, and trend forecasting. State whether the proposed expenditure is within budget.
- Risks and benefits
Outline any risks , for example, quality, safety, finance, employment, reputation, and environment. Consider these in the context of your organisation’s risk tolerance. Explore the consequences of not taking the recommended action, providing a balanced view that weighs risks and benefits. Outline mitigation strategies.
- Impact
Explain what impact this has had already, if relevant.
- Recommendation and Resolutions
Each recommendation should state the proposed resolution, explain why it is the optimal choice, and include a summary of alternatives when applicable. The draft resolution should be ready for the Board’s direct approval.
More tips
- Tailor papers to your board. Boards need a strategic view, so avoid operational details.
- Have detailed information available on request or place it in an appendix.
- Keep language clear and avoid unnecessary words. Avoid jargon and acronyms.
- Follow up. After meetings, follow up on action items and decisions, assigning clear responsibilities and deadlines for each task.
- Review and edit papers to avoid errors.
- If the papers is an important one, seek feedback on the draft.
- Provide board members with enough time before the meeting to properly consider the papers.
- Get good advice. It is common for the chair and the CEO to work closely on board papers. Papers may also need accounting or legal input. It is worth getting good advice to ensure the ramifications of all potential decisions are considered and understood.
We have an extensive suite of free resources for charities, including our Charities Legal Handbook and Incorporated Societies: Information Hub (which features a free Guide for Navigating Re-Registration, webinar recordings and an FAQ with nearly 150 questions). We also often write articles about specific aspects of charities law. Here are some recent ones:
Recent changes to the Charities Act – Part 1
Recent changes to the Charities Act – Part 2
Transitioning from an incorporated society to a charitable trust
Let us know if you would like to have input on any legal issues you may be facing.
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This article is general in nature and is not a substitute for legal advice. You should talk to a lawyer about your specific situation. Reproduction is permitted with prior approval and credit being given back to the source.
