News and Resources for Institutionally Related
Foundation Boards and Executives
New AGB findings on foundation governance
“To ensure compliance with Sarbanes-Oxley, foundations should develop a formal process to investigate complaints... and protect employees and volunteers from potential retaliation...”
Boards of college and university foundations increasingly are being called on to demonstrate enhanced transparency, efficiency, and accountability. In fall 2007, AGB developed a short electronic survey to assess the extent to which college and university foundations have changed their governance structures and practices in the past five years. The survey questions specifically asked about changes made to governance practice in the context of the Sarbanes-Oxley Act and other models of best practice. While a majority of foundations reported significant changes to internal controls; financial, investment, and audit functions; and changes to the operating agreement with the primary institution, many foundations have yet to adopt key polices and practices essential for compliance and accountability. Click here for the Report on Foundation Governance Practices and Changes Made Since 2002.
Endowment spending
in the regulatory spotlight
In the past year, the federal government, the IRS, a host of commentators, and most recently, state legislators have begun to scrutinize the endowment spending of universities and colleges to ensure that they provide the community benefits commensurate with their wealth. Read an update on ongoing and forthcoming efforts to test the societal return on university endowments.
Foundations explore investing trusts in the endowment
“It’s not easy, but certainly worthy of consideration, and it will probably become increasingly common as more institutions follow suit and interest grows among donors.”
—John Carter, President and CEO, Georgia Tech Foundation
Some of the larger public institutions and institutionally related foundations are following the lead of the Ivies and other wealthy independent institutions by applying for Private Letter Rulings allowing them to invest trusts in their endowments. Learn what some foundations are doing and the potential benefits, drawbacks, and risks of investing trusts in your endowment.
The dynamics of funding college and university affiliated foundations
As state revenues decline, foundations are facing heightened pressure to raise levels of private support. At the same time, concerns about tuition costs may encourage foundations to direct a higher percentage to student financial aid. Read about the latest trends in foundation funding in “The Dynamics of Funding College and University Related Foundations: Report of an AGB Research Study.”
AGB Foundation Leadership Forum looks to the future
“What we’re working on today is going to have the greatest benefit to the university 15, 20, 25 years from now.”
—Gary Bloom, Chair, Cal Poly Foundation
Participants in the 2008 Foundation Leadership Forum examined issues and challenges facing foundations today and considered the transformative potential of public institution foundations. Click here to learn more...
UPMIFA
Twenty-five states have enacted The New Prudent Management of Institutional Funds Act (UPMIFA); it is pending in eight states to date. AGB has been working closely with the National Council of Commissioners on Uniform State Laws, Commonfund, and NACUBO to support passage of the act. Learn more about UPMIFA and current state adoptions here.
State legislative and regulatory updates
Search a database of legislation impacting higher education governance by state and policy area. Enter “institutionally related foundations” to view state legislation concerning foundations.
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