The manifestations of racial injustice coupled with the public health and economic consequences of the COVID-19 pandemic may be the two defining events that will reshape the world. These tectonic shifts have impacted institutions of public higher education and their institutionally related foundations, causing them to rethink and operate in very different social and fiscal environments. Tragic events highlighting racial injustice in the United States directed at African Americans and other communities of color call into question the role and responsibilities of foundation boards to support their affiliated institutions regarding how they confront and address these issues. While university affiliated foundation board members are cognizant of their core responsibility to serve as fiduciaries in managing and growing the foundation’s endowment, they also have come to recognize their responsibility to align their mission and endowments with institutional core values. Many foundation boards have a long tradition of shaping national and international public policy and using their endowments through responsible investing to influence progressive initiatives dating back to the colonial period. During that time for example, a number of religious groups refused to invest their endowment funds in the slave trade. In the 1920s, some mutual funds began to screen out investments in tobacco, alcohol, and gaming. In the 1970s, many foundations used socially responsible investing to oppose apartheid policies in South Africa by disinvesting in companies that supported the regime. Most recently, university foundation boards, such as San Francisco State University, California State University Humboldt, and Stanford University among others, helped lead the movement of divestment in fossil fuels and tar sands in response to environmental issues emanating from global warming. The point is that boards and their investment committees have responded to many of these issues by conducting board study sessions, participating in discussions, and implementing environmental, social, and governance factors (ESG) to better manage their investments and align them with institutional values.
Universities, both public and private, are confronting a renewed national reckoning with systemic racism, and foundation boards need to consider their role in responding to the current challenges in these unprecedented times. As we confront the issues of racism and social injustice locally and nationally, the heightened demands for diversity, equity, and inclusion (DE&I) has brought forth an urgency and moral imperative for institutions of higher education to reflect and act in a proactive manner on their institutional commitment to these issues. Despite the progress that universities have made over the last 50 years to promote access and educational opportunity for students from underserved communities and its commitment to the recruitment of diverse faculty and staff, the vestiges and harm resulting from segregation and systematic racism is still embedded in the institutional fabric of universities and affiliated auxiliaries.
The question that foundation boards need to consider is what role does DE&I play in the board’s mission and work? Boards understand that their defined responsibilities include advancing institutional priorities. However, policies and practices may not reflect their institution’s commitment to DE&I and may fall short on reflecting and acting on the priorities.
Understandably, foundation boards operate with the recognition that one of their primary responsibilities as fiduciaries is the prudent management of its endowment, which includes a balanced and diverse pool of investments for the long-term benefit of the institution. Hence, it is logical to extend this approach to the importance and benefits of diversifying the human capital and talent that comprise the board’s membership.
The current national climate is focused on institutionalized racism and this is a propitious time for boards to discuss and expand the scope of their responsibilities to reflect and align their focus with institutional commitment and values regarding DE&I.
Why Diversity Matters for Boards
In response to the national climate on race, many board members understand the benefit for becoming more diverse and inclusive. Other board members will require more justification to convince them of the benefits of such an approach. Boards should ask the question: Can the board function effectively and support the needs of its university if it is not diverse, inclusive, and reflective of the demographic it serves? The answer is, yes, but, it is unlikely that the board’s full potential can be realized if its membership is largely homogeneous.
A good first step is to have the board charge its nominating committee or committee on directors to review the current board membership and conduct a gap analysis to consider the racial, ethnic, gender, age, and LGBTQ composition of the board. For without a clear plan and criteria there is a natural tendency to look to our own networks when searching for candidates, which can easily give rise to reinforcing identity salience, the idea that individuals will perform in a manner congruent to how they identify themselves.
Again, the benefits of having a diverse board of directors is particularly powerful when there is a critical mass of varied perspectives to support broad and inclusive thinking. This kaleidoscope of viewpoints is vital to enhance the board’s effectiveness. Board members recruited from diverse communities, backgrounds, and businesses must be identified and selected in ways that align with the strategic needs of the foundation. The challenge of the committee on directors is to help structure the board’s membership so that a creative and positive tension of different perspectives and personalities exists within a coherent framework that serves the needs of the foundation.
There are several ways in which the board and its Committee on Directors can help facilitate the discussion that leads to a shared vision for diversity, equity, and inclusion:
First, review the institution’s policy on DE&I. This is an excellent opportunity to engage the university president, provost, vice president of student affairs, and the chief diversity officer in a board study session.
- Conduct a gap analysis of the existing board. A gap analysis matrix can be a helpful tool to identify the experience and competencies of the current board and, more importantly, identify stakeholders who are not represented. By expanding the analysis to include the full range of underrepresented groups, the board can act with greater awareness as it advances the foundation board’s and university’s mission.
- Develop a policy statement regarding DE&I for the board that makes the case for a shared vision and how the board’s work will benefit by aligning to this commitment.
- The Committee of Directors can start identifying a pool of potential board members beyond the traditional network. Consider prospective board members from your alumni association, the deans’ advisory committees, and, of course, nonprofits and community-based organizations in the region.
- Establish an effective culturally sensitive and inclusive onboarding program for new board members from traditionally underrepresented groups to help them quickly acclimate and navigate the board and institutional. Assigning a peer board mentor is good practice for all new board members.
- Conduct an annual self-evaluation process. A diverse board is united by a shared vision, purpose, common board standards, and goals. An annual board member self-evaluation process is central to maintaining and measuring the experience of board members, especially new board members.
- Anticipate and be prepared to open mutual dialogue with students. When the students and their respective organizations and community-based groups approach your foundation about social and racial justice issues, be open to meeting with them to hear their point of view. Too often, when approached by students advocating on hot-bottom issues, boards tend to delay in engaging with them.
- Discuss with your board the university’s mission statement and core values on DE&I and discuss whether they align with the foundation board’s values and investment policies.
- Foundation staff should schedule regular study sessions, trainings and speakers for the board on the issues of DE&I.
- Develop a policy statement and case for support on DE&I for recruiting a more diverse board.
Concluding Thoughts
Our country is at an inflection point in terms of race relations and social justice. Universities and colleges and their affiliated boards are at the forefront in addressing and responding to the challenges that lay ahead of us regarding this issue. A broadly diverse and inclusive board brings a wide range of life experience and perspective that adds to vibrant board and policy discussions to further the board’s mission in support of the university.
There is an important role for foundations to advocate for the institutions they support and align its work with the mission of their universities. This is the time for board members to once again think broadly, ask hard questions, and act to promote diversity, equity, and inclusion.
Robert J. Nava, JD, is the vice president for advancement and executive director for the California State University Santa Bernardino Philanthropic Foundation.
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