AGB President & CEO Update: Governance Under Pressure (Foundation)

You are viewing the Institutionally Related Foundation version of this CEO Update. An Institution and Systems version is also available.

The current higher education environment presents foundation boards with an urgent call to leadership. Legislative overreach, attacks on academic freedom, public scrutiny, and deepening political polarization are reshaping the operating context for college- and university-affiliated foundations. These external forces are likely to be compounded by state budget cuts, increased need for student support, challenging investment markets, and donor concerns.

In recent updates, we have explored fiduciary duty, scenario planning, and advocacy as strategic imperatives. This month, we focus on the essential role of foundation boards in governing with clarity, courage, and commitment to mission amid volatility. This is a time that demands not only strategic insight but moral clarity—ensuring that philanthropy remains a force for access, innovation, and student success.

Foundations must not retreat from controversy but instead reinforce their institutional partners by leading with transparency, principle, and vision.

The Current Landscape: Why Governance Is Being Tested

Although college- and university-affiliated foundations have not, by and large, been a focus of political and legislative debates, they are being affected by changing campus policies, new funding needs, and a climate in which donors may be increasingly cautious about major gift decisions. Some foundations are also facing challenges to board autonomy. As legislative proposals limit spending on diversity, equity, and inclusion (DEI), reshape curriculum, or impose new regulations on donor intent and endowment use, foundations must be ready to act.

Reputational and financial risks are rising. Fundraising environments are becoming more complex, donor expectations are shifting, and foundations must operate under closer media and regulatory scrutiny than ever before. These pressures call for a reaffirmation of board purpose, independence, and resolve.

Leading with Conviction and Integrity

Fiduciary duty for foundation boards must be grounded not only in compliance but in long-term vision and public trust. This includes protecting endowments, stewarding donor intent, and supporting institutions in advancing mission-driven goals, even under pressure. Foundation boards are uniquely positioned to reinforce institutional resilience and autonomy through values-based governance and philanthropic leadership.

The Board’s Critical Role in Polarized Times

Foundations must maintain their independence while working with their institutional partners to engage constructively with elected officials and other stakeholders. In the current climate, clarity of roles is critical: governance and management must be distinguished, and foundation boards must remain focused on strategic purpose rather than operational entanglement. Trustees must champion institutional mission, model civil discourse, and act as bridges between donors and the broader community.

Strategies for Stronger Foundation Board Leadership

To meet the moment, foundation boards can adopt several practical strategies to reinforce purpose and effectiveness:

Emphasize Clarity of Purpose: Align board decisions with institutional priorities, mission, and student success.
Promote Internal Unity and Culture: Cultivate mutual trust, diverse perspectives, and disciplined deliberation.
Improve Board Development: Train trustees to navigate political pressures and media scrutiny.
Support the Institution President and Foundation CEO: Ensure strong board alignment with institution leadership in times of external challenge.

Scenario Thinking in Action

Foundation boards across the country are confronting complex and escalating challenges—from political interference in academic affairs to reputational fallout from campus controversies and internal conflict over institutional direction. Adding to this landscape of uncertainty is the potential loss of federal and state funding for higher education institutions. In response, the most effective governing boards are turning to scenario planning, proactive stakeholder engagement, and mission-driven principles to assess risks, anticipate change, and make values-aligned decisions that safeguard institutional resilience.

Policy Advocacy with Integrity

Foundation boards also have a role to play in advocacy. When public policies threaten autonomy, access, or equity, foundations should use their voices to reinforce the public value of higher education. By collaborating with institutional partners and engaging in nonpartisan advocacy, foundation boards can amplify their impact.

Boards can accomplish these goals by:

Working with institutional leaders to respond to policy proposals that threaten autonomy, access, or equity.
Engaging with alumni advocates and partnering with other institutions to amplify impact.
Staying true to principles for engaging in public discourse without partisanship.

Go Deeper

Explore these resources to deepen your board’s capacity for courageous governance and values-based leadership:

AGB Policy Alert: Act Now—Budget Reconciliation Bill Impacting Higher Education Could Be Finalized by July 4
Blog Post: “Preparing for Change”
FAQs: Board Advocacy
Toolkit: Safeguarding Institutional Autonomy: A Tool for Boards Facing Political Interference
Trusteeship Magazine Article: “The Role of Advocacy and Community Relations for Foundation Boards”
Trusteeship Magazine Article: “Strategic Planning vs. Strategic Thinking”
Trusteeship Magazine Article: “Scenario Planning in Three Modes”

The Courage to Lead

This is not a moment for caution—it is a call to principled action. Foundation boards must lead with foresight and conviction, reaffirming their role as vital partners in supporting mission-driven progress in higher education. At AGB, we are committed to equipping boards with the tools and insights needed to lead with integrity and vision.

Thank you for your dedication to higher education governance.