Are nieces and nephews of board members, foundation founders, considered disqualified or are just the direct blood descendants disqualified?
Nieces and nephews of board members are not considered to be disqualified persons; however, in the family foundation context, you also have to go back to who the substantial contributors were. For instance, your niece may be a direct bloodline of your grandfather, who is a substantial contributor, and they might be disqualified by virtue of their relationship with the founder, but not with you, as a board member.
So, in family, it’s really important to get out the family tree, mark who the disqualified people are, and then follow those lines down. But if there’s no other disqualification, a niece or nephew will not be disqualified because of their relationship with you.