Key Term

What is Board Of Directors?

Definition

A Board of Directors is a group of elected or appointed individuals who collectively oversee and govern the activities of a nonprofit organization or charitable foundation. These individuals are responsible for establishing organizational policies, making major decisions, ensuring financial accountability, and providing strategic direction while serving as fiduciaries who act in the best interest of the organization and its mission.

Significance

The Board of Directors plays a crucial role in charitable giving as they are ultimately responsible for ensuring donor funds are used effectively and ethically. They establish giving priorities, approve grant-making strategies, and maintain oversight of the organization's financial health and compliance with regulations. Their leadership and decision-making directly impact the effectiveness of charitable programs, donor confidence, and the organization's ability to fulfill its charitable mission. A strong, engaged board is often seen as an indicator of a well-managed charity, which can influence donors' giving decisions and the organization's ability to attract major gifts.