Striking the Balance:

Foundations’ capacity to fulfill their functions as stewards of donor funds and information and to serve as entrepreneurial partners to their institutions is, in part, contingent on their corporate status as “private” entities. The pursuit of full financial and legal independence can however be costly and create tensions with institution boards and administrators.

In the current public policy environment, foundations are likely to be subject to increased scrutiny and legal challenges from institutional stakeholders, donors, and critics seeking to monitor institutional expenditures on DEI or other hot button issues. When determining whether a Foundation may be subject to related freedom of information or open records requests, Courts have looked to “independence” as a test to determine the applicability of state freedom of information laws. In addition, the level of foundation independence affects IRS tax filings such as Form 990 and audits.

This series of three online seminars will provide an overview of the factors informing legal “independence,” the administrative and cultural issues that should be taken into consideration in structuring the foundation-institution relationship, and guidance on steps foundations can take to help them maintain their legal independence while maintaining a close collaborative partnership with institution leaders. Issues explored include institution-foundation memoranda of understanding (MOU), institutional representation on foundation boards, institutional approval for foundation actions, and resource-sharing.

On-demand session recordings are only available to AGB members.

Speakers

• David Bass, executive director philanthropic governance, AGB
• Mike Goodwin, senior consultant, AGB
• Thomas Hyatt, general counsel, specialist, and senior fellow, AGB
• Margaret Jarrell-Cole, senior consultant, AGB

Who Should Watch?

• Foundation Board Members, CEOs, CFOs and Legal Counsel
• College and University Presidents and CFOs
• Members of Institution Governing Boards