Best Practices & Case Studies
Board Resolutions
Publication date:
September, 2023
Source(s):
https://www.boardeffect.com/blog/best-practices-for-writing-a-board-resolution/
What is a board resolution?
A board resolution is a formal, legally-binding document of a board’s decision.
When should a resolution be used?
Resolutions formalize a board’s vote in writing and should be used to record important decisions.
Board resolutions are commonly used by community foundations to establish new, board-created funds and to document the use of variance power. Other ways in which boards may use resolutions include:
- Approval of new board members and new board officers
- Identifying employees and officers who have signature authority
- Identifying employees and officers who can access the corporation’s bank account
- Major capital expenditures
- Loans
- Large grants/allocation of funds to a project
- Hiring/firing employees
Tips for writing a board resolution
- Title the resolution
- Date the resolution
- Provide important details, but maintain brevity
- Use formal language throughout the document, such as beginning each new paragraph with “Whereas”
- Summarize the contents in the concluding paragraph
- List the legal names of voting board members
- Include a signature line for the board president or board secretary
- State if the vote was unanimous
- If the vote did not pass unanimously, list each name of voting members and their vote.
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