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You are viewing the Institutionally Related Foundation version of this CEO Update. An Institutions and Systems version is also available.
Last month, I encouraged foundation boards to consider how their organizations must evolve to continue supporting the institution’s mission and long-term success. Boards should apply the same consideration to how their foundations govern. They should ask themselves if their meetings, committee structures, and relationships are helping them make more informed strategic decisions, and what could make them more effective.
Give Everyone the Full Picture
Imagine a board assessment that found that only a small percentage of members felt they understood the foundation’s finances. Improving that number should be a top priority, but before adding another presentation, take a look at how committee meetings are scheduled.
Scheduling multiple committee meetings at the same time limits board members’ ability to sit in on meetings of committees on which they don’t serve but from which they would have much to learn. Enabling the full board to sit in on meetings of the finance committee can foster a more informed board that’s better equipped to make sound business decisions. This may not be applicable to all committees, and committees may want to set ground rules for participation by nonmembers. As an example, continual questions from board members unfamiliar with the nuances of the foundation’s portfolio and investment strategies could derail the complex work of an investment committee.
When scheduling committee meetings, ask if the larger board would benefit from the opportunity to sit in on meetings, barring confidentiality concerns and with appropriate ground rules in place. Scheduling meetings consecutively rather than concurrently allows board members to sit in on meetings of committees they are not assigned to, subject to appropriate confidentiality and committee requirements.
As an example, pairing access to finance committee meetings with clear financial briefings and strong committee reports can greatly improve understanding of foundation finances, which should extend across the board.
Chairs, staff leaders, and board professionals should also protect time for discussion. Sending routine reports and background materials in advance, using consent agendas, and making clear what members are being asked to consider or decide can significantly enhance the efficiency of meetings and allow more time for strategic discussion.
Committee Structures Should Reflect Foundation Priorities
Boards should regularly assess whether their committees reflect the foundation’s evolving priorities. Historical committee structures may not be providing enough board attention on the issues that are most consequential today.
Boards should conduct an assessment of committee charters to determine if their committees are focused on the right issues, whether there are gaps or unnecessary duplication, and whether the committees reflect the foundation’s most important priorities for sustained board oversight.
A recent AGB pulse survey asked members how well their board’s committee structure supports their mission and strategic priorities and whether they have an established process for periodically reviewing that alignment.
60% of respondents said there is room to improve alignment between their board’s committee structure and strategic priorities. Yet only 29% said their board has a formal policy that establishes regular committee review.
Whatever your current structure, the important question is whether the board is adequately organized around the foundation’s current priorities.
Questions foundations should be asking:
- Do committees align with the foundation’s current priorities, strategy, risks, and opportunities?
- Do committees have a clear understanding of their charges and what issues are handled at the committee level and what goes to the full board?
- Do both committee and board members have the context to govern effectively with timely access to needed information?
- Are we using members’ expertise and time where they can add the most value?
- Do we have a regular process for assessing committee structure, effectiveness, charters, and priorities?
Maintaining the Proper Role of the Executive Committee
The executive committee has authority to handle urgent issues between meetings, but it’s important to ensure its actions don’t compromise full-board engagement.
Consequential matters that warrant full-board discussion should come before the full board, and trustees should have sufficient information to understand decisions made under delegated authority. The executive committee should be viewed as a bridge rather than a shadow board, where a small group makes the “real” decisions. A strong board is one that has committee structures in place to help the entire board fulfill all its responsibilities and support every aspect of the board’s work, not just a few areas.
Is Your Foundation Ready for the New Era of College Athletics?
For institutionally related foundations, the changing college athletics landscape can create new funding pressures, affect fundraising and donor engagement, impact the ways the foundation works with other partners, and shape how philanthropic support connects with institutional priorities. Foundation boards should understand where athletics-related fundraising fits within the foundation’s mission and policies while maintaining clear coordination with institutional leadership as the financial and regulatory environment continues to evolve.
That is why AGB is convening board members and institutional leaders November 10–11 in Washington, DC, for The Governance Challenge in College Athletics: Mission, Finance, and Board Oversight. The convening will help boards strengthen their oversight as they navigate revenue sharing and name, image, and likeness (NIL); evolving financing and business models; media rights; and emerging institutional risks.
AGB Resources to Strengthen Your Foundation Board’s Effectiveness
AGB can help you evaluate how your foundation board works and identify practical steps for improvement.
- AGB Foundation Leadership Academy—An executive development program that helps build the leadership capacity of your foundation and prepare prospective foundation CEOs for the wide range of skills and capacities needed in this role, including setting strategy, fostering organizational culture, and overseeing human resources, finance, operations, and investments.
- AGB 2027 Foundation Leadership Forum—An event that brings foundation board members and leaders together to navigate emerging challenges, strengthen governance, and develop strategies to advance philanthropy, stewardship, and institutional priorities.
- Board Assessment—Resources to evaluate board performance, identify gaps in knowledge and engagement, and establish priorities for improvement.
- Effective Committees—Guidance to help boards align committee responsibilities, work plans, and meeting practices with foundation mission and strategic priorities.
- Restructuring Committees—A practical guide for evaluating and redesigning your board’s committee structure in alignment with your foundation’s circumstances and changing needs.
- Board Member Orientation—A self-paced course for establishing a common foundation of governance knowledge, including board responsibilities and fiduciary duties.
I encourage you to spend some time examining how your foundation board governs and whether it should make improvements to the committee structure, meeting schedule, or information flow from committees to the full board—or whether new committees are needed to reflect emerging priorities. Governing for the future starts with making sure the foundation board itself is structured for the work ahead, and AGB is here to help.
