What is the role of a funder in charity governance?

• A. To publish donor lists publicly.
• B. To manage day-to-day operations of the charity.
• C. To set terms, monitor outcomes, ensure alignment with charitable purposes, and maintain accountability.
• D. To decide on staff hiring and salaries without oversight.

Answer: (C)

Funders influence governance by shaping how funds are used: they set the terms of funding, require reporting and evaluation, monitor outcomes, and check that the work stays aligned with the charity’s charitable purposes and remains accountable to supporters and funders. This arrangement provides oversight and ensures funds produce the intended impact without taking over day-to-day management or internal HR decisions, which remain the charity’s responsibility. Publishing donor lists and making staffing decisions without oversight do not fit the typical governance role of a funder, which is why setting terms, monitoring results, and ensuring accountability best describe their function.