Posted on November 8, 2005

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Trustees Value Involvement in Foundation Strategy, Assessment, and Performance, Report Finds

While foundation trustees take compliance issues seriously, they also want to be involved in developing strategy, assessing impact and performance, and contributing their capabilities to foundation efforts, a new report from the Boston-based Center for Effective Philanthropy finds.

The report, Beyond Compliance: The Trustee Viewpoint on Effective Foundation Governance, describes the steps the boards of fifty-three large foundations have taken to implement governance reforms, and discusses how trustees' definitions of effective governance go well beyond compliance with minimal standards. The report also outlines the implications of these findings for foundation CEOs, board chairs, trustees, and staffs, including ways in which foundation staffs and boards can better manage the contribution of trustee capabilities, time, and insights.

Sponsored by BoardSource and Grantmakers for Effective Organizations, the survey of 550 trustees identified five key characteristics of board effectiveness: an appropriate mix of trustee capabilities and utilization of those skills; engagement in strategy development and impact assessment; focus of discussions on important topics; a positive relationship with the CEO; and the opportunity for influence and respectful dissent in board meetings. Part of CEP's Foundation Governance project, the survey also found that compensated trustees spend a third more time than unpaid trustees on foundation-related business outside of board meetings, and that community foundation board members desired more involvement in cultivating new donors and fundraising.

"In this study, we endeavored to understand the views of a group whose perspectives and motivations have been a source of much discussion and speculation, but whose voices are surprisingly rarely heard in the debate on foundation governance: the trustees themselves," said CEP executive director Phil Buchanan, a co-author of the report. "This study does not provide all the answers, but we hope it spurs productive discussion and reflection in foundation boardrooms."

To read or download the complete report (32 pages, PDF), visit: http://www.effectivephilanthropy.org/images/pdfs/
CEP_Beyond_Compliance.pdf.

“Study of Foundation Governance Reveals How Boards Have Responded to Recent Scrutiny and How Trustees Define Board Effectiveness.” Center for Effective Philanthropy Press Release 11/07/05.

Primary Subject: Philanthropy and Voluntarism
Location(s): United States

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