Foundations must pivot to meet new needs, report finds

30 Apr 2020 News

Foundations should combine pursuing long-term objectives with being able to pivot to meet the needs of today, according to a new report from the Association of Charitable Foundations (ACF).

The report, Strategy and Governance: The Pillars of Stronger Foundation Practice, was published today and is the third to emerge from ACF's Stronger Foundations initiative. 

It sets out seven characteristics of excellent foundation practice, which include being aware of the external context and its role in the wider ecosystem, publicly articulating its vision, mission and values, and continually strengthening its governance arrangements, including board diversity. 

The report says that these pillars can be interpreted and pursued by all foundations whatever their remit, size or starting point. 

The new report finds that stronger foundations are those that both “stick and twist”. They “pursue short and long-term goals and regularly review their own perpetuity”.

That is to say, foundations should “supersede political and economic turbulence, invest in riskier ‘long-shots’, and be live to emergent opportunities, flexible in delivery, responsive to critique and ready to change”.

The report argues that foundations should also “involve people with lived experience” when setting strategy. It says foundations should seek out and respond to criticism, and find ways to be accountable to the causes and communities they care about. 

The report is informed by the Stronger Foundations strategy and governance working group, external experts, wider literature and ACF's own analysis. 

'The governance and strategies of stronger foundations recognise the wider context'

Carol Mack, chief executive at ACF, said: “Strategy and governance are incredibly important and easy to take for granted. They are at the heart of what makes for an ambitious and effective organisation which maximises its potential for social good. 

“For foundations – who frequently have few of the checks and balances that come with the need to raise funds, or to deliver services – these are especially important issues. A strong strategic and governance framework is vital to clearly set out what the organisation is working towards and how decisions are made, allowing trustees, staff and stakeholders the confidence to know that decisions serve the public benefit the charity is committed to deliver.

“I am particularly struck by how the governance and strategies of stronger foundations recognise the wider context – perhaps more relevant now than ever. Part of this is recognising the history of foundations, whether the centuries for some of our older members or more recent years for newly founded organisation.

“We can make our own history, but we cannot – and should not – kid ourselves that what has gone before is not relevant or valuable to build on and to inform our choices now and into the future. Seeing governance and strategy as essential tools for enabling us to make effective use of all of the resources that we have at this most challenging moment in time is a central concern of this report.”

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