AGB President & CEO Update: Reinforcing Fiduciary Duty to Strengthen Foundation Governance

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

I hope you had a chance to enjoy the holiday break and take some time to rest and recharge.

As we begin 2026, many of us will set out to build healthier habits for the new year. Lasting improvement, however, will not come from a single action but from a steady, ongoing commitment. Governance is no different. Effective foundation boards are built through continuous learning and reinforcement of core principles. Central to this work is a shared and evolving understanding of fiduciary duty, not a one-and-done onboarding exercise. Effective boards embrace a disciplined, ongoing commitment to the principles of fiduciary duty that enable foundations to advance their missions and philanthropic priorities with clarity and integrity.

As you know, foundation board members carry significant responsibilities. They are responsible for ensuring mission alignment, stewarding financial resources, safeguarding organizational reputation, and positioning the foundation for long-term impact. They must do all of this while navigating a continually evolving philanthropic, legal, and policy landscape. Regularly revisiting and deepening understanding of fiduciary duty is essential to govern effectively through this complexity.

Foundation CEOs and board leaders can support effective governance by:

Integrating educational programs on fiduciary duty into regular board development.
Reinforcing governance principles at key decision points.
Creating opportunities for reflection on how fiduciary responsibilities intersect with mission, strategy, and risk.

This ongoing commitment will help boards remain aligned, informed, and prepared to make sound decisions even in the most challenging environments.

Executive Leadership Requires Board Partnership

The pressures on foundation leaders are significant, and the most effective CEOs and executive directors succeed through strong, trusting partnerships with their boards. Regardless of experience, foundation leaders cannot lead effectively without the full support of the board, and I encourage all boards and CEOs to commit to strengthening their relationship in the new year.

To provide this support:

Boards should proactively ask foundation CEOs what they need, especially given the increasing complexity of today’s philanthropic environment.
Board chairs should establish consistent channels of communication with their CEOs, cultivating a relationship based on transparency, shared goals, and mutual respect.
Both CEOs and boards should invest in understanding each other’s roles and constraints, reinforcing a culture of collaboration rather than oversight alone.

AGB Resources to Strengthen Foundation Governance

AGB Board Member Orientation—An indispensable introductory or refresher learning program on nonprofit and foundation governance, essential board responsibilities, fiduciary duties, and boardroom culture.
AGB’s Knowledge Center on Fiduciary Duties—Guidance for foundation boards on their legal and ethical fiduciary responsibilities to help ensure decisions align with mission and comply with applicable laws and regulations.
AGB-Facilitated Board Workshops and Retreats—Expert-guided development, reflection, and alignment to strengthen foundation boards’ capacity to uphold fiduciary duty and implement leading governance practices.
AGB Institutes for Foundation Board Leaders and Chief Executives—Intensive programs that strengthen the partnership between foundation CEOs and board chairs, helping build the trust and clarity essential for effective governance.
AGB’s How to Govern for Institutional Autonomy: A Practical Guide for Higher Education Boards—Governance best practices, diagnostic tools, checklists, and strategies grounded in fiduciary duty and mission-centered leadership for foundations.
AGB’s Foundation Leadership Forum—The Foundation Leadership Forum will bring together foundation board members and foundation and institution executive teams to learn from each other and develop strategies to elevate board leadership, strengthen institution-foundation partnerships, and sustain shared purposes.

Looking Ahead

By investing regularly in fiduciary education and strengthening the partnership between boards and executive leadership, foundations will be best positioned to fulfill their missions and maximize their impact in an increasingly complex environment.

Happy new year and thank you for all you do to advance philanthropy and higher education.