Facilitating Board Transitions

Managing Big Change While Keeping the Mission in Mind

When a Foundation's Board of Directors starts to restructure, it presents complex challenges that can be difficult for seasoned leaders to navigate, especially when they’re accustomed to operating a certain way. A shift in practices often requires a shift in mindset first, and directors with long records of public service may feel reluctant to embrace large-scale change.

At harp-weaver, we guide these transitions with deep knowledge and varied experience, whether a newly formed foundation is starting from scratch, a longstanding organization requires a complete overhaul of governance practices, or a family foundation is passing the torch. By centering the mission in every decision and understanding when to listen versus when to lead, we partner with foundations to help them evolve with confidence.

Major board transitions sometimes spark an identity crisis of sorts, leaving directors unsure of their role in shaping the foundation’s new era. It’s harp-weaver’s job to balance intervention and independence, allowing directors the autonomy to make final decisions about the future, while we provide the options and frameworks. 

Governance for Good

Enacting good governance practices is often the first step of a structural change. For one client, whose board became a private foundation after operating as a public charity for decades, that meant forming committees and charters, reviewing and updating policies and bylaws, expanding membership, and developing an onboarding process. Small tasks like creating a board book for prospective directors are tackled alongside much larger ones, such as determining how a foundation should demonstrate a commitment to its values in the selection of new directors. 

Through this process, we found the directors weren’t confronting entirely new concepts, but were being asked to approach those concepts through a new lens; one that centered on more equitable procedures. For example, we communicated how lived experience may be as valuable as professional experience when seeking new board members, and leveraged our networks to find prospective members with genuine connections to the communities the foundation serves. These kinds of networks, marked by industry professionals with extensive board experience and grassroots community leaders, can only be built over time by philanthropy advisors with cross-sector backgrounds rooted in collaboration.

Introducing a Board to Grantmaking Practices

Making the switch from fundraisers to funders requires a thorough exploration of different types of grantmaking. Coming off of an invitation-only process, we laid out what a public process would look like, along with the kinds of support the foundation could offer: general operating, project-based, capital, etc. As with most processes we oversaw with this client, it was important to create a detailed timeline with clearly delineated responsibilities for each committee member. We understand that boards are comprised of both busy working professionals and active retirees serving in volunteer roles. Anticipating the amount of time they’d realistically want to spend learning new information and applying it through a completely new grantmaking cycle yielded a process in which the heavy lifting was left to us.

Ultimately, with harp-weaver’s guidance, the foundation felt it could comfortably make the bold move to launch its first public process. It decided to start with general operating support as a way to introduce itself to the universe of prospective grantees within its interest area. We presented them with eligibility and criteria guidelines, drafted the application questions, and managed all submissions through an online portal. We conducted site visits with existing and prospective grantees to gain a more intimate perspective on each organization’s work, relaying our impressions back to the committee. This form of relationship-building is one of the most valuable services we offer clients. With harp-weaver acting as staff, the foundation can maintain an open-door policy and establish real trust with grantee partners, allowing the board to focus on broader philanthropic goals.

Translating Financial Management into Community Impact

Financial management tends to be one area where board members, especially those with corporate backgrounds, feel more confident in their abilities to lead. However, keeping compliance with complicated IRS rules and understanding investment complexities will take even the most experienced finance professionals by surprise. This is why harp-weaver assembles a team of wealth managers and advisors alongside in-house financial managers to handle accounting, reporting, and asset management for our clients.

We assist leaders with drafting and reviewing investment policy statements that outline goals and strategies to leverage mission-aligned investments for maximum community impact. Through every aspect of a foundation’s transition, harp-weaver staff harnesses shared expertise to lay the groundwork for boards to make informed decisions about structuring their organization to achieve its philanthropic objectives.