ABSTRACT
Trustees have the ultimate responsibility for deciding the direction of foundations. Trustees are in one sense like directors of a corporation, because directors also choose managers, operating styles, and activities of firms. Trustees might also be compared to the elected officials that are ultimately accountable for the operation of governments. Duty to the public interest is in this case a common element that links governments and foundations. In a broader sense, there are three major groups to which trustees are responsible: donors, the general public, and recipients of the products of foundations. The public trust placed in non-profit foundations stems directly from their tax-privileged status. The expectations that the intentions of the donors are adhered to and the welfare of the intended beneficiaries is furthered are more vague. Self-perpetuating boards are likely to lack the diversity of a board appointed by other means.
