Certified Fund Raising Executive (CFRE) Practice Test

The board of the organization plays a critical role in overseeing and guiding the strategic direction of a nonprofit, including decisions related to significant donations. When a significant donation falls outside the current master plan, it often requires careful consideration regarding how it aligns with the organization’s mission, priorities, and long-term goals.

The board is tasked with ensuring that all contributions support the overall vision and strategic objectives of the organization, and they have the authority to make final decisions on the acceptance of such donations. This governance structure is necessary to maintain accountability and to ensure that the organization remains focused on its mission without diverting resources or efforts away from established priorities.

While the executive director and the fundraising team may provide valuable insights and recommendations regarding the donation, and the donor's advisory committee might offer perspectives on donor intent, it is ultimately the board that holds the responsibility for approving or declining significant contributions to ensure they are in the best interest of the organization.