Used Goods Donations
Before donating used goods, learn how to ensure your contributions truly benefit charities. Get tips on thrift stores, drop-off bins, and tax deductions.
Wise Giving Wednesday: What Good Governance Looks Like in Charities
Strong governance is one of the clearest indicators that a charity is prepared to use donations responsibly, stay mission-focused, and earn long-term public trust.
Why Governance Matters for Mission-Driven Charities
In our first post of the new year, Wise Giving Wednesday explored how charities can refocus on mission in 2026.
This week, the focus turns to governance, a critical element enabling charities to achieve their mission.
When charities approach governance with integrity and efficiency, they are better positioned to focus on mission and earn public trust.
What Does Good Governance Look Like in Practice?
The beginning of the year is when many charities begin putting new budgets and strategic plans into action. Ultimate responsibility for setting and approving an organization’s direction rests with the board of directors.
A strong board offers clear oversight and sets a thoughtful, ethical direction for the organization.
The Three Duties Every Charity Board Should Know
Guidebooks from state regulatory authorities commonly identify three essential responsibilities of a charity’s board:
- Duty of loyalty – placing the charity’s mission first;
- Duty of care – wise use of the charity’s resources; and
- Duty of obedience – following bylaws and appropriate government regulations.
Governance and Oversight Standards from BBB Wise Giving Alliance
The first five BBB Standards for Charity Accountability help ensure an active, independent board of directors, free of self-dealing.
Here are some highlights of what’s expected to meet each standard:
- Standard 1 calls for adequate board oversight of the charity, including CEO performance reviews, board approval of budgets and fundraising practices, adoption of a conflict-of-interest policy, and establishment of adequate accounting procedures to safeguard charity practices.
- Standard 2 looks for a minimum board size of five voting members.
- Standard 3 verifies a minimum of three board meetings, with majority attendance, within a calendar or fiscal year.
- Standard 4, on board compensation, calls for no more than one or 10% (whichever is greater) of board members to be compensated, and that no compensated members serve as board chair or treasurer.
- Standard 5 seeks to ensure organizations are free from conflicts of interest arising from business affiliations. We verify that charities have appropriate arms-length procedures in place.
What Charity Governance Practices Matter Most to Donors?
In our 2024 Donor Trust Survey, we presented participants with a list of practices that help strengthen board oversight of a charity’s operations and staff, and asked them to pick the three they considered most important.
The most important charity governance practices chosen by donors were:
- Establishing procedures to prevent financial mismanagement (57%);
- Avoiding transactions with board- or staff-affiliated businesses that could create conflicts of interest (42%); and
- Limiting compensation to no more than 10% of board members (42%).
Good governance helps charities use resources wisely and stay true to their mission, while building donor trust.
Check Charity Governance Practices Before You Give
To explore how your favorite charities measure up against the 20 BBB Charity Standards, search our full database at Give.org.
Each evaluative report includes information about governance and oversight, financial management, organizational effectiveness and fundraising practices to help you give with confidence.
Recent Reports
We are always working with charities to publish or update reports for donors. Visit Give.org to check out any charity before giving. Our recently evaluated charities include:
Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.
