After talking with hundreds of foundation staff and board members over the past two years about governance, I’m not surprised by the findings in the Center for Effective Philanthropy’s new research snapshot, “Foundation Governance Today: How Boards and CEOs Are Navigating Risk, Accountability, and a Shifting Landscape.”
Foundation CEOs reported challenges stemming from a lack of alignment with staff and boards, and two thirds say boards could do more to support the foundation’s impact — including increasing payout, understanding context, and taking more risks.
Based on GEO’s work with grantmakers, we know that these concerns are deeply connected. When boards better understand the realities nonprofits and communities face, they are more likely to do things like increase payout and take bolder action to meet the moment.
While CEP’s research snapshot offers insight into the challenging and positive experiences foundation CEOs have regarding boards, we at GEO have been exploring how grantmakers can align governance with mission, purpose, and values so it strengthens your work rather than distracting from it.
Governance as a Key Lever for Change
As a community of funders committed to transforming philanthropic culture and practice to center nonprofit and community needs, we see governance as a key lever for change in our sector — especially as nonprofits and communities navigate existential threats and new pressures created by the federal administration. We outline what we’ve learned about improving governance in philanthropy in GEO’s new resource, “Toward Meaningful, Valuable, Equitable Governance.”
It’s important to name a couple of things up front. The governance issues that bog philanthropy down are usually structural and cultural, not due to bad actors on staff or the board. Many foundations learn this the hard way when they replace individual staff or board members, only to find the same patterns reemerge.
These issues show up in foundations of all types and sizes, and there is no one “right” way to do governance in philanthropy — context matters. Some organizations may choose to redesign governance structures entirely. However, even grantmakers who keep a traditional board structure, as is the case for most foundations, can make many meaningful improvements.
That’s because big doors swing on small hinges. Concrete and practical shifts in grantmaker practice can result in changes that make a real difference for nonprofits and communities.
Governance Changes That Make a Difference
In GEO’s new publication on governance, we outline nine shifts and promising practices that grantmakers are testing to improve governance so that boards are engaged, responsive in times of change or crisis, and accountable to the communities they serve.
Several of these shifts relate directly to the findings in CEP’s research snapshot.
Build Trust and Alignment Between Staff and Board
CEP’s research notes that foundation leaders who feel supported by their boards reported alignment and a high degree of trust. Getting there requires devoting time and energy to building relationships and trust between staff and board — and among board members — and building accountability within those relationships.
Deaconess Foundation in St. Louis, for example, works to create a “beloved community” on the board through intentional orientation and annual retreats that include current and former board members.
At family foundation Open Horizon, Co-Founder and Board Member Lisa Cohen and inaugural Executive Director D’Lynn Jacobs have invested time and resources — including co-coaching — to build their working relationship and navigate differences across race, power, and privilege.
Help Boards Understand the Context Nonprofits Face
CEOs in CEP’s research worried that boards “just don’t get it,” meaning they’re being asked to make decisions without knowing enough about the realities nonprofits and communities face. It is critical that boards both reflect and engage community and develop a deeper understanding of the work.
For example, Elmina B. Sewall Foundation uses an open call to identify new board members beyond current networks, and Magic Cabinet has brought grantee leaders onto its board.
Saint Luke’s Foundation in Cleveland engages staff and board members in shared learning alongside grantees. (See “Engaging Boards and Trustees in Strategic Learning” from GEO and FSG for more on board learning.)
Focus Boards on Their Highest and Best Roles
As leaders in CEP’s research pointed out, it’s hard to balance current crises and long-term planning. That’s why we recommend focusing on the highest and best use of the board given your organization’s current context.
Many grantmakers told GEO that a major turning point came when they moved the board away from in-the-weeds decisions on individual grants or dockets, and toward generative and strategic conversations.
Rather than rubber-stamping grant approvals, would your organization and mission be better served by the board aligning on the role you should play in the ecosystem? Or connecting with grantees and community members to consider what needs are likely to arise based on contemporary events?
An Invitation to Change
Funders have significant room to improve governance — and also significant power to do so. Much of what foundation boards do is governed not by requirement but merely by preference or tradition.
As we point out in “Toward Meaningful, Valuable, Equitable Governance,” shifts in governance practice can help boards better align their work with mission, values, and community needs.
With intentional focus and effort, your board can become an accelerant of progress for the communities you serve. At GEO, we are continuing to learn alongside foundation staff and board leaders who are experimenting with concrete changes to make governance more effective.
Meghan Duffy is executive vice president at Grantmakers for Effective Organizations and leads GEO’s work on governance.
