AGB President & CEO Update: America at 250: Governing for the Future of Higher Education and the Nation (Foundation)

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

As we celebrate America’s independence this month, it is worth reflecting on the ideals that shaped our past and the decisions that will shape our country for generations to come.

For 250 years, higher education has helped advance American opportunity, innovation, civic life, economic growth, the public good, and our global competitiveness. Colleges and universities have opened doors for students, produced generations of leaders, fueled research and discovery, strengthened communities, and created pathways to a better future.

Institutionally related foundations have played a vital role in that story. They have helped to build a robust culture of philanthropy supporting public higher education. Foundation boards have, through their giving, made significant direct investments in their institutions and, through their fundraising, brought additional individual and corporate support to the students and communities they serve. Their stewardship has sustained the trust of donors and grown philanthropic resources to provide support for their institutions and students for centuries to come.

As we celebrate America at 250, we must ask: What will it take to preserve the strengths of higher education while reinvigorating it for students, communities, and the nation in the next 250 years?

The answer starts with governance.

Foundation Governance at a Crossroads

AGB posed this question at the National Press Club on July 13. We brought together trustees, policymakers, university leaders, foundation leaders, and governance experts to explore board independence, institutional autonomy, and the future of higher education governance.

During the event, leaders examined the ways colleges and universities increasingly find themselves in the middle of political, cultural, and ideological battles; the destabilizing effects that occur; and the necessary steps to protect institutions and their mission. The clear takeaway from the discussion: Boards must not become partisan bodies or vehicles for outside agendas. They are fiduciaries. Their responsibility is to serve the mission of the foundation, honor donor intent, support the institution’s long-term success, and help ensure that philanthropy advances student success, research, community impact, and the public purposes of higher education.

Board Independence, Institutional Autonomy, and Foundation Alignment Are Essential

Board independence and institutional autonomy are fundamental to the ability of colleges, universities, and their related foundations to fulfill their missions.

For foundation boards, independence does not mean distance from the institution. Foundations that are financially and operationally interrelated with their institutional partners can still function as independent fiduciaries. Effective foundation governance should reflect and support strong alignment with the board, the institution president, and other campus partners.

When governance becomes driven by ideology, personal agendas, or short-term pressure instead of fiduciary duty and mission stewardship, institutions and foundations are put at risk. The effects can include leadership turnover, weakened donor trust, stalled fundraising, strained institution-foundation relationships, reputational harm, and a reduced ability to support students and communities.

Conversely, when foundation governance is rooted in fiduciary responsibility, clear roles, strong partnership, and a shared commitment to mission, foundations are positioned to strengthen philanthropy, steward resources wisely, and enable the institution to pursue opportunities and navigate periods of disruption.

Governing for the Future

To help higher education meet this moment, AGB has launched Governing for the Future, an initiative designed to strengthen governance as a strategic asset for colleges, universities, systems, and institutionally related foundations.

The initiative includes two complementary efforts.

Govern NOW provides practical tools, resources, and guidance that help governing boards strengthen fiduciary governance and mission stewardship. For foundation boards, this means reinforcing role clarity, board accountability, donor trust, institution-foundation alignment, and long-term stewardship of philanthropic assets.

Govern with Integrity provides governance policy recommendations and guidance aimed at strengthening trustee preparedness, governance effectiveness, and the broader environment in which boards operate. These recommendations can help create the conditions for boards to succeed while protecting institutional autonomy, fiduciary responsibility, and the public purposes of higher education.

Together, these efforts support foundation boards as they carry out their responsibilities in a more complex and visible environment.

A Defining Moment for Foundation Boards

America’s 250th anniversary provides an opportunity for foundation boards to reflect on their responsibilities and ask important questions:

• How is our foundation helping the institution prepare students to succeed and contribute to a thriving economy, society, and democracy?
• How are we strengthening donor trust and connecting philanthropy to mission, impact, and long-term institutional priorities?
• How are we supporting student success, access, research, innovation, and community impact through effective fundraising and stewardship?
• How are we working with the institution, president, foundation CEO, and advancement leaders to ensure strong alignment and shared purpose?
• How are we fulfilling donor intent and fulfilling the board’s fiduciary responsibilities?
• How are we preparing for leadership transitions, building capacity, developing strategies to support the institution through periods of disruptive transformation, and fostering the next generation of philanthropic leadership?

These questions matter because foundation boards have a powerful role in shaping the future of higher education. They help connect institutional mission with philanthropic support. They build trust with donors and communities. They steward resources that can strengthen institutions for decades to come.

Leadership for the Next 250 Years

As we celebrate America at 250 years, it is imperative that foundation boards are prepared to help steward higher education for our country’s next chapter.

By committing to fiduciary responsibility, strengthening institution-foundation alignment, protecting donor trust, supporting institutional autonomy, and governing with integrity, foundation board leaders can help ensure that colleges and universities remain engines of opportunity, discovery, civic life, and economic progress.

At AGB, we believe strong governance is essential to student success, the public good, and the continued strength of our nation. Through Governing for the Future and the resources we provide for foundation board leaders, chief executives, and governance professionals, we are committed to helping foundation boards lead with clarity, purpose, and a deep commitment to the institutions and communities they serve.