Governance as a Bridge to Better Giving
Philanthropy can be a bridge across generations, connecting values and resources in service of something bigger than ourselves. But as foundations and donor-advised funds (DAFs) grow - whether they are family-led or staffed foundations - complexity follows as we bring in more family members, more dynamics, perspectives, and decisions.
This is where governance comes in.
I know “governance” can feel like a heavy word. It often conjures images of bylaws and bureaucracy. But in practice, good governance isn’t about rules for the sake of rules. It’s about freedom. It’s the scaffolding that allows boards, families, and staff to work with clarity, sustainability, and even joy. (My team and clients likely get tired of me saying, “Clarity is kindness.”)
In a past blog, I wrote about the human side of wealth transfer and referenced governance as an important tool for navigating those transitions. It’s what keeps both purpose and people aligned as philanthropy (and our world!) becomes more complex.
Why governance matters
One client we work with has more than 20 trustees and is preparing to grow by another dozen. That expansion reflects a deep commitment from the family, brings more voices to the table, and can create more energy for giving. But it also increases the risks of unclear governance: meetings that drift, staff caught in the middle, and trustees disengaging because they are unsure of their role(s).
Even with a small number of board members or trustees, governance matters. With governance, families and foundations have the clarity they need: who has authority, how decisions are made, how conflicts are resolved, and how participation evolves over time. For staffed foundations, governance also brings clarity for the leadership team and trustees. Clear decision making structures allow the team to focus on mission, not mediation, and to know what is within staff purview and what needs to be approved by the board.
Governance must evolve
Governance is not a one-time fix. It’s a living practice. With several multigenerational clients, we agreed on initial decision-making structures as the foundation was getting started, then revisited and restructured them as families matured in their philanthropy.
As rising generations gain experience and demonstrate commitment, we adapt board roles and guidelines to reflect their growing leadership. This flexibility is essential. Governance that stays rigid becomes brittle. Governance that evolves builds resilience and trust, allowing established and rising generations to step into their roles with clarity and purpose.
Governance can be joyful?
Families sometimes fear that governance will make giving feel restrictive or overly corporate. Members may worry it will create red tape. In reality, good governance frees everyone to focus on what matters most.
I’ll admit it: I love a good RACI chart. I know – that is so consultant-ey. But here’s why: tools like this are a mechanism for agreeing on the details. They spell out who is (R) responsible, who has (A) authority, who should be (C) consulted, and who needs to be kept in the loop (I = informed). It might not be glamorous, but it prevents the “wait, who needs to weigh in on this decision?” moments that can drain energy from the work. When everyone knows their role, they can lean in fully instead of tripping over each other or being afraid of offending another family member.
When roles are clear and decision-making is transparent, families and boards don’t get stuck in logistics. When conflict management is built in, disagreements don’t spiral into disengagement. And when staff or independent board members know the “rules of engagement,” they can focus on strengthening partnerships with nonprofits instead of refereeing uncertainty.
Good governance builds trust - across generations, between staff and trustees, and with the nonprofits we support. And that trust creates the conditions for joy in the work.
Have I convinced you yet?