Chat with AGB Board Bot
You are viewing the Institutionally Related Foundation version of this CEO Update. An Institution and Systems version is also available.
Rescissions of federal funds, changes in federal financial aid, changed rules for student visas, and disruptions stemming from the federal shutdown are creating significant financial challenges for many public colleges and universities and directly impacting some of their most vulnerable students. In the coming years, institutions will likely be looking to their foundation partners for increased support at a time when foundations may be dealing with their own financial shortfalls if they are reliant on funding from the institution or if market returns and giving decline.
These challenges underscore a larger reality: institutions are operating in an environment of growing external interference and expectations. Each day, new pressures test the independence and authority of higher education governing boards. From proposed federal “compacts” to escalating regulatory and ideological pressures, external forces are increasingly seeking to control or influence higher education governance. These efforts may extend to affiliated entities either through demands or actions of institution boards, new institution presidents, or activist donors who seek to use philanthropic support to intrude on curricular or hiring decisions or otherwise infringe on academic freedom.
Foundation boards must, first and foremost, serve as fiduciaries on behalf of their institutions and donors, safeguarding donor intent, prudently investing and spending endowed funds with an eye toward sustaining the long-term purchasing power of funds (intergenerational integrity), and maintaining the trust of the full spectrum of their donors and prospects. A foundation that is seen as being controlled by external ideological interests rather than fully guided by fiduciary principles will struggle to raise funds from a politically diverse community of constituents. Many foundations are not financially or operationally independent, but with very rare exceptions their boards should be able to fulfill their fiduciary responsibilities independently.
The Govern NOW Initiative: Tools to Strengthen Governance Integrity
This is a pivotal moment for higher education. To help governing boards and foundations recognize, resist, and safeguard against the growing forms of undue influence and external pressures, and adhere to mission-driven stewardship, AGB launched the Govern NOW initiative, supported by a grant from the Mellon Foundation. The initiative offers:
- A new practical guide titled How to Govern for Institutional Autonomy.
- Self-assessment tools for boards to evaluate their independence and resilience.
- Templates for constructive stakeholder discussions and engagement.
- Guidance on preserving governance integrity amid ideological or policy pressures.
Govern NOW was created to equip boards and affiliated foundations with the frameworks, language, and resolve to protect their independence and ensure they govern from principle versus pressure. Govern NOW has focused on institution governing boards, but foundations can play an important role as advocates for their institutions and the value of public higher education and the academic freedom that has been a sustaining value of U.S. higher education since its inception.
Standing Together for Mission-Driven Stewardship
This moment demands unity. As a fiduciary, you play an indispensable role in safeguarding your foundation’s mission, values, and ability to support students, faculty, and the institution you serve. AGB stands with you and for you as we work together to uphold the governance principles that sustain the excellence and integrity of U.S. higher education and its foundations.
