AGB President & CEO Update: Preparing for Change (Foundation)

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

Public policy shifts, volatile funding landscapes, and increasing public scrutiny are reshaping the terrain of higher education. For college- and university-affiliated foundations, scenario planning and strategic advocacy are more than boardroom exercises—they are essential acts of leadership. These are times that demand preparation for the “what ifs” and a renewed commitment to “what matters.”

Scenario Planning: A Philanthropic Imperative

Foundations should maintain a focus on supporting institutions’ long-term resilience. Given their mission of supporting their affiliated institutions, their obligation to serve as forward-looking stewards of endowments, and their commitments to supporting access and student success, foundation boards have a fiduciary responsibility to attempt to anticipate disruptions and mitigate risks that could affect institutional vitality, fundraising performance, and scholarship sustainability.

Public policy changes, federal funding, and a highly uncertain economic climate are all likely to create financial challenges for institutions. For foundations, this calls for joint scenario planning with institutional leadership—addressing contingencies such as legislative budget cuts, cuts to federal funding, endowment taxes, and major market events that could all lead to increased financial need for institutions and potential financial challenges for foundations themselves.

Questions for Foundations to Consider

How would a significant decline in public funding affect our endowment’s ability to support scholarships or strategic initiatives?
How would a major market event impact the foundation’s ability to fulfill donor purposes? And how would a market decline impact fundraising?
Is the foundation working with the institution to determine how best to comply with restrictions on expenditures for diversity, equity, and inclusion (DEI) or other regulatory changes while honoring donor intent?

Scenario Planning Pulse Check

In a recent AGB pulse survey, just over half of respondents (51.86 percent) indicated their boards have engaged in scenario planning to address public policy shifts, with 25.93 percent describing it as an active, ongoing process. However, nearly 40 percent reported either not engaging in such planning or having no current plans to do so, highlighting a significant opportunity for increased board-level preparedness.

Advocacy with Purpose: Foundations as Strategic Allies

Trustees and foundation leaders are influential voices in advancing higher education’s public value. Advocacy isn’t only a function of the institution—it is a shared responsibility.

When foundations work with their institutional partners to engage in thoughtful advocacy—whether through storytelling, public testimony, or cross-sector alliances—they reinforce the importance of higher education in civic life and economic development.

Questions for Foundations to Consider

Are we equipping our board members to confidently communicate the impact of the institution on the community, state, and nation?
How are we mobilizing donor voices, alumni, and business partners to support institutional priorities during policy debates?
What role can our foundation play in preserving academic freedom and shared governance through public engagement?
Are we proactively informing elected officials about the return on investment from philanthropic dollars at our institution?
Does the foundation work closely with the institution’s government relations team to ensure that foundation communications and advocacy are closely aligned with those of the institution?

Go Deeper

Explore these resources to gain deeper insight into how board-led scenario planning and strategic advocacy foster resilience and uphold institutional mission.

Trusteeship magazine article: “The Role of Advocacy and Community Relations for Foundation Boards”
Trusteeship magazine article: “On My Agenda: Strategic Planning vs Strategic Thinking”
Trusteeship magazine article: “Scenario Planning in Three Modes”
Blog Post: Board Member Voices Can Strengthen Advocacy Efforts
FAQs: Board Advocacy

AGB Policy Alerts

New Executive Orders on Accreditation and Foreign Gift Reporting

The White House recently issued two Executive Orders signaling major changes for higher education governance: one reforming accreditation to prioritize measurable student outcomes and scrutinize DEI standards, and another expanding disclosure and enforcement requirements around foreign gifts to universities. Both actions raise the stakes for federal funding and increase legal and strategic risks.

House Education and Workforce Committee Reconciliation Package

The House Education and Workforce Committee has advanced a budget reconciliation package that would significantly reform federal student aid, institutional accountability, and education regulations. Based on the College Cost Reduction Act, the legislation aims to cut federal spending and limit the Department of Education’s role, with major implications for governance, enrollment, and financial aid administration.

AGB is closely monitoring these developments and has published new policy alerts to help board members understand what’s changing and how to respond:

AGB Leads National Call to Reaffirm and Uphold the Independence of Higher Education Governance

AGB is spearheading a national initiative to reaffirm the independence of higher education governance, warning against escalating political interference that threatens institutional autonomy, academic excellence, and democratic values. Rooted in the foundational principles established by Dartmouth College v. Woodward, AGB is urging presidents, chief executives, chancellors, and board chairs to stand united in defending board independence and rejecting undue influences that compromise fiduciary responsibility and mission integrity.

In Case You Missed It—AGB Joins Effort Defending the Integrity of Federal Research Funding

AGB is proud to stand alongside the Association of American Medical Colleges (AAMC) and a coalition of leading higher education associations in defending the transparency and stability of federal research grant processes. As a signatory on an amicus brief in Massachusetts et al. v. Robert F. Kennedy, Jr., et al., AGB affirms that abrupt or unexplained termination of research funding undermines more than individual projects—it threatens the infrastructure of innovation and discovery that governing boards are charged with protecting.

As fiduciaries, board members must advocate for research environments that are legally sound, financially stable, and committed to the public good. We thank the AAMC and our peer associations for championing this vital cause.

Governance Watch: Consent Decrees as Red Flags

I recently wrote an opinion piece for Inside Higher Education, cautioning that the mere prospect of a consent decree at Columbia University is a flashing warning sign for trustees of higher education institutions across the country.

The piece emphasizes that independent governing boards are essential to safeguarding academic freedom, upholding institutional missions, and ensuring responsible, mission-driven leadership.

Trustees must:

Reaffirm fiduciary duties amid political pressure.
Seek independent legal and governance counsel.
Insist on clear, limited, and transparent terms in any negotiations.
Speak with a unified voice to defend governance independence.

The erosion of board autonomy doesn’t just threaten governance structures—it jeopardizes the trust, freedom, credibility, and sustainability of our institutions. This moment demands clarity, courage, and collective resolve from governing boards across the nation.

AGB Is Here for Foundation Boards

AGB is your partner in navigating today’s challenges and preparing for tomorrow’s opportunities with expert training on fiduciary responsibilities, strategic decision-making, and governance excellence. If you’re seeking direction or you have questions, please don’t hesitate to connect—we’re ready to support you.

Thank you for your membership and for all you do to support higher education.

Ross Mugler
AGB Board Chair and Acting President and CEO