COMPETENCIES FOR Chief Executive Officers Of Private .
C O M P E T E N C I E SF O RChiefExecutive OfficersofPrivateFoundations
VISIONThe Council’s vision for the field is ofA vibrant, growing and responsible philanthropic sector that advances the common good.We see ourselves as part of a broad philanthropic community that will contribute to this vision. Weaim to be an important leader in reaching the vision.MISSIONThe Council on Foundations provides the opportunity, leadership and tools needed by philanthropicorganizations to expand, enhance and sustain their ability to advance the common good.To carry out this mission, we will be a membership organization with effective and diverse leadershipthat helps the field be larger, more effective, more responsible and more cooperative.By common good we mean the sum total of conditions that enable community members to thrive.These achievements have a shared nature that goes beyond individual benefits.By philanthropic organizations we mean any vehicle that brings people together to enhance theeffectiveness, impact and leverage of their philanthropy. This includes private and communityfoundations, corporate foundations and giving programs, operating foundations, and public foundations,as well as emerging giving and grantmaking mechanisms involving collective participation.STATEMENT OF INCLUSIVENESSThe Council on Foundations was formed to promote responsible and effective philanthropy. Themission requires a commitment to inclusiveness as a fundamental operating principle and calls for anactive and ongoing process that affirms human diversity in its many forms, encompassing but notlimited to ethnicity, race, gender, sexual orientation, economic circumstance, disability and philosophy.We seek inclusiveness in order to ensure that a range of perspectives, opinions and experiences arerecognized and acted upon in achieving the Council’s mission. The Council also asks members tomake a similar commitment to inclusiveness in order to better enhance their abilities to contribute tothe common good of our changing society.1828 L Street, NW, Suite 300Washington, DC 20036-5168202/466-6512 cof.org 2006 Council on Foundations Inc.All rights reserved. Data from this report may not be cited or reproduced without attribution to Competencies for Chief Executive Officers of Private Foundationsand the Council on Foundations.
ForwardToday, more than 64,000 U.S. private philanthropicfoundations play a constructive role in promotingsocial, cultural, economic and environmentalinnovation and in building and sustaining valuableinstitutions and organizations that benefit society athome and abroad.PRIVATE FOUNDATION CHIEF EXECUTIVE OFFICERS (CEOs), in partnership with their boards,have a pivotal role in the fiscal and program success of their foundation’s goals. At the same time, they help to shapepublic issues, enliven and inform public debate, and convene community leaders on matters of public concern.THESE LOFTY CEO RESPONSIBILITIES, however, have only been loosely defined. For example, CEOs areoften expected to creatively expand ways to leverage their foundation’s resources with nonprofit sector know-how, bestrategic in their funding choices, demonstrate deep understanding of the foundation’s programmatic areas, evaluatethe impact of their funding and make very difficult decisions about priorities, investment strategies, programarchitecture and sector alignment. Yet these expectations, with all their contradictions and high aims, are more akinto an anthology of hope than to a definition of role. They do not make up a coherent and realistic position profile.RECOGNIZING THIS NEED TO BETTER DEFINE THE CEO’s ROLE and other needs related to CEOleadership development, the board of directors of the Council on Foundations charged the Advisory Committee forExecutive Programs (ACEP), made up of current and former foundation senior executives, to help support PrivateFoundation CEO leadership development. Research by ACEP in 2003 and 2004 confirmed that there is a lack ofclarity regarding the role of the foundation CEO that creates a structural impediment to effective leadership.THIS PILOT DOCUMENT ATTEMPTS TO CODIFY THE JOB FUNCTIONS OF THE PRIVATEFOUNDATION CEO (functions) and the skills and knowledge needed to perform these functions, referred toas competencies. ACEP developed this document with input from foundation staff, board members, academicsand others.
Explanation of the FunctionsTHE PRIVATE FOUNDATION CEO job functionsin this document are meant to describe the customarycharges of private foundation CEOs. ACEP recognizesthat every foundation is unique and that any standardlisting of functions, including the functions containedin this document, will not fully describe the job ofevery private foundation CEO. Instead, it is hoped thatthese functions describe the preponderance of jobresponsibilities for most private foundation CEOs. Tofully and accurately describe a particular private foundation CEO job, the functions may need to be adjustedto fit that foundation’s particular context, including thefoundation’s size, style, culture and stage in its organizational life cycle.For example, some functions may not apply to certainfoundations. Small or highly specialized foundationsmay choose not to have their CEOs perform certainexternal leadership functions. CEOs of larger foundations may delegate the bulk of the staff managementfunctions to another executive. Still, the functions(in figure 2) represent the key leadership-level responsibilities that help ensure foundation effectiveness. If afoundation chooses not to include certain functions inthe CEO’s job description, it should base this choice onsolid reasoning and ensure that this omission does notundermine the foundation’s effectiveness. Even if afoundation decides to delegate one of the CEO’s functions to another staff member, it is still the CEO’sresponsibility to ensure that that function is performedwell. Thus, the CEO must at least perform meaningfuloversight relative to that function.Similarly, some foundations may find that this list offunctions does not represent everything that is expectedof their CEO. For example, the founders may havecharged the foundation with specific expectations thatimply additional CEO functions.2cof.orgFurthermore, many CEOs have operational as well asexecutive responsibilities. For example, some CEOs mayalso be program officers or chief financial officers. Bydefinition, however, these functions relate only to theexecutive responsibilities of the CEO. CEOs who haveoperational responsibilities will need to add these to thepertinent CEO functions to complete their particularjob description.To make the Private Foundation CEO Functions a moreuseful executive development tool, ACEP decided toidentify the skills and knowledge, or competencies,needed to perform each function. These are presentedlater in this document.As with the functions, the unique mission of each foundation will influence the ways the competencies areapplied. For example, it might be appropriate for CEOsof large foundations to expect other executive staff topossess the necessary competencies. Similarly, smallerfoundations may use external consultants to ensure thatkey skills and knowledge are reflected at the executivelevel. Furthermore, some CEOs may need to performoperational functions in addition to their executivefunctions. Thus, they need to have operational competencies in addition to these CEO-level competencies. Insum, adjust the competencies to the context of yourfoundation.At this time, the private foundation job functions donot address additional family-related demands ofCEOs of family foundations. ACEP plans to modify thefunctions and competencies to better include theseadditional demands in the future. Council on Foundations Inc.
Explanation of the CompetenciesTHE COMPETENCIES CONSIST OF the keyskills and knowledge that private foundation CEOsneed to perform their job functions well. A skill is thepersonal capacity or capability to do something, such asspeak in public or think strategically. Skills can beobserved. Knowledge is defined as the information andunderstanding one needs to be effective, such as theprincipal laws governing foundations or the principlesbehind adult learning.There are two types of competencies. CoreCompetencies cover the essential professional skills andknowledge that any CEO, regardless of field, needs tomaster. Each is essential to the performance of manyPrivate Foundation CEO Functions. FunctionalCompetencies are the skills and knowledge neededeither to perform specific Private Foundation CEOFunctions or to perform functions other sectors havebut are substantively different in the philanthropicsector. Functional Competencies build on the CoreCompetencies. As the name implies, FunctionalCompetencies are grouped by function.Figure 1. Competencies StructureBy definition, the Functional Competencies representthe level of personal and professional developmentnecessary for individuals to perform the functions well.Achieving this level does not, however, guaranteeactual performance of the functions. An individual maypossess all of the necessary competencies to perform afunction and still lack the time, resources or interest todo so.It is perhaps impossible for any single individual tomaster every one of these skills. Thus, readers shouldinterpret the competencies as an ideal, and not asminimum job requirements.FunctionalCompetenciesSkills and knowledge afoundation CEO needs inorder to specifically perform thePrivate Foundation CEO Functions.Specific to each of the 13 functions.Core CompetenciesEssential skills and knowledge a CEO from any field needs.Critical building blocks for the development of Functional Competencies.Areas: collaboration/partnership, communication, decisionmaking, governance,management, organizational development, personal and professional development,planning and vision setting. Council on Foundations Inc.Council on Foundations3
þUsing the Functions and CompetenciesAcademies and practitioners can use the functions andcompetencies in the following ways:4 Help private foundation CEOs self-assess or arrangefor an external or 360-degree feedback assessment oftheir own performance (vis-à-vis the functions).4 Help foundation boards arrange for an assessment oftheir CEO’s performance (vis-à-vis the functions).4 Help private foundation CEOs identify the knowledgeand skills they need in order to develop and strengthentheir performance overall or on any given function (byreviewing the competencies).4 Help providers of foundation executive educationoffer effective programs and clearly communicateprogram content and benefits (by basing them on thefunctions and competencies).4 Help foundation boards and senior executives definethe job of CEO and create CEO job descriptions.4 Help executive recruiters define the ideal candidate.Conduct a careful review of your own organization andmake any necessary adjustments before applying thefunctions and competencies to your foundation.4cof.org Council on Foundations Inc.
Figure 2. Job Functions of the Private Foundation CEOInternal (Organizational) LeadershipProvide the vision, direction, inspiration and motivation necessary to ensure the foundation’s success.1. Mission Stewardship: Work with the board andstaff to define the foundation’s mission, communicate iteffectively within the foundation, ensure that it servescontinuously as an inspiration and guide and execute it.2. Board Relations: Work with the board to helpensure that it is properly constituted and trained toconduct effective governance.3. Values and Ethical Standards Management: Workwith the board and staff to ensure adoption of andadherence to appropriate values and ethical standards inall foundation business.4. Identity Management: Work with the board andstaff to ensure proper care and development of thefoundation’s history, culture, reputation and image.Internal (Organizational) ManagementMake decisions that result in efficient and effective foundation functioning.5. Staff Management: Ensure that staff are properlyselected, supported and guided and that their professional development is nurtured.6. Financial Management: Work with the board andstaff to develop asset investment management andfinancial administration strategies and systems thatare effective and aligned with the foundation’svision/mission and ensure that such strategies andsystems are implemented well.7. Programmatic Management: Work with the boardand staff to develop programming, grantmaking andgrant management strategies and systems that areeffective and aligned with the foundation’svision/mission and ensure that such strategies andsystems are implemented well.8. Legal Issues Management: Work with the boardand staff to develop legal strategies and systems thatare effective and aligned with the foundation’svision/mission and ensure that such strategies andsystems are implemented well.9. Accountability and Evaluation Management:Work with the board and staff to establish accountabilitystandards and systems that track the foundation’s effectiveness and impact.External LeadershipContribute to the dialogue, vision and direction of the pertinent global, national or local communities; for the fieldsof the foundation’s focus areas; and to the field of philanthropy.10. Visionary Leadership: Contribute to the vision andthought leadership of the field of philanthropy and communicate this vision.11. Partnership Management: Work collaborativelywith other private and/or public funders and granteesfor greater social impact. Council on Foundations Inc.12. Education and Public Engagement: Help shapethe agenda and decisionmaking of government andother external stakeholders.13. Issue-Area Visionary Leadership: Contribute tothe vision and thought leadership in the foundation’sfocus area(s) and communicate this vision.Council on Foundations5
Core Competencies1Core competencies ensure that CEOs have a solid basis from which to perform all of their executive functions.Understand the basics of:Collaboration/ PartnershipKnow:q The organization’s history ofqCommunicationq Priority elements of the organizaqDecisionmakingcollaborationSuccessful personal approach(es) tocollaborationtion’s vision, values and missionThe public context in which theorganization operatesq Personal decisionmaking styleBe able to:q Guide cross-team and crossqqqorganizational collaborationRelate well to a diversity ofindividualsConvene and manage groupsWork well as a team playerq Constructively challenge those withqqqqpower and authoritySpeak effectively and compellinglyWrite effectively and compellinglyResolve communication problemsManage competing interestsq Delegate appropriate decisions andresponsibilitiesq Ask staff for the amount of informaqGovernanceq The board’s style, operations, conqcerns and aspirationsThe principles of laws applicable togovernancetion that is appropriate for leadership-level decisionmakingMake clear and timely decisionsq Work well with the board, regardlessof its compositionq Contribute to board buildingq Adhere to clear lines of responsibility and accountability1The content areas of the Core Competencies, shown in the left hand column, are presented in alphabetical order.6cof.org Council on Foundations Inc.
Core Competencies (continued)Understand the basics of:ManagementKnow:q The culture of the organization,including the degree and type ofteamwork among staff, and breakdowns in teamworkBe able to:q Create a positive and productiveqqqqqOrganizationalDevelopmentq Under what circumstances it isq Create a work environment in whichproductive to use consultantsq A personal approach to changemanagementqqqqPersonal and ProfessionalDevelopmentq The Private Foundation CEOout of the field of philanthropyobtain effective executive educationqq Council on Foundations Inc.learning is continuous and staff feelcomfortable taking risks to help thefoundation meet its missionEncourage staff to go outside oftheir professional duties and intononprofit life as volunteers, granteesand donorsDetect changes in the organization’sfunctioning, culture, or dynamicsCreate and maintain organizationalcultureManage changeq Arrange for a personal assessmentFunctions and Competenciesq Where and how executives in andwork environmentModel proper staff behavior andpromote inclusive practicesCreate a sense of sharedresponsibility/credit for accomplishments and shared responsibility forchallenges or failuresLead an efficient and effectiveorganizational operation accordingto best practices, ethical guidelinesand fiduciary requirementsManage competing requirementsand interestsUse external consultants andexperts effectivelyof performance of the Private Foundation CEO FunctionsMake and express to the board theconnection between professionaldevelopment and foundationeffectivenessConduct ongoing personal andprofessional developmentCouncil on Foundations7
Core Competencies (continued)Understand the basics of:PlanningKnow:q The organization’s previousqVision Settingplanning initiativesThe organization’s future needsq What can excite the imaginationsqof staff, the board and pertinentexternal groupsFounding documents of the organizationBe able to:q Think strategicallyq Lead strategic thinking andplanning effortsq Lead the creation of a shared visionqqq8cof.orgfor staff, the board and pertinentexternal groups that is aligned withthe organizationEducate others on the future direction and inspire them to be supporters and advocatesIncorporate the organization’s visioninto its programs and operationsEmbody the organization’s vision inall work Council on Foundations Inc.
Functional Competencies2Competencies for Mission Stewardship1. Work with the board and staff to define the foundation’s mission, communicate it effectively within thefoundation, ensure that it serves continuously as an inspiration and guide, and execute it.Understand the basics of:The Foundation’sExternal ContextThe Foundation’sOrganizational Historyand CultureKnow:q The context, strengths and chal-Be able to:q Relate well to all key stakeholderslenges of the communities thefoundation funds and supportsq The basic content of the documentsq Incorporate the foundation’s culturethat created the foundationThe history of the foundation’s pastgrantmaking and program activitiesCurrent organization imperatives,priorities and initiativesand history in exploring the existingorganizational mission and vision,and how these relate to the currentwork of the foundationRelate the experience of the foundation and its present-day realities(e.g., changing demographics inregions where the foundationoperates) back to the vision/missionand history of the foundationDetect and overcome weaknesses inthe alignment of the foundation’svision and mission to its currentcontext and future trendsMotivate staff and the board aroundthe mission of the foundationqqqqqCritical Core CompetenciesCommunication, Collaboration/Partnership, Decisionmaking, Management and Vision Setting2 The content areas of the Functional Competencies, shown in the left hand column, are presented in alphabetical order. Council on Foundations Inc.Council on Foundations9
Competencies for Board Relations2. Work with the board to help ensure that it is properly constituted and trained to conducteffective governance.Understand the basics of:Board DevelopmentKnow:q The history of the foundation’sqqGovernanceboardThe biographies and skills of currentand past board membersThe board’s recent and currentprogrammatic and governancedirectionsq The history of the foundation’s govqqernance, grantmaking and programactivitiesThe strengths and weaknesses ofthe governance models employedby the current board (consensus,Roberts Rules, etc.)Public policy and trends that couldeffect foundation governanceBe able to:q Facilitate the board’s awareness ofqits development needs and identification of appropriate orientationand trainingFacilitate the board’s developmentof board terms of service andtransition policiesq Work with the board to developqqqeffective written bylaws andprocessesSupport and encourage appropriateboard functioning and involvementEncourage and work well within asystem of organizational units (e.g.,committees, task forces.)Work with the board to create asupportive environment thatencourages staff to take appropriaterisks in service to the foundation’smissionCritical Core CompetenciesCommunication, Collaboration/Partnership, Decisionmaking, Personal and Professional Development,Organizational Development, Management and Vision Setting10cof.org Council on Foundations Inc.
Competencies for Values andEthical Standards Management3. Work with the board and staff to ensure adoption of and adherence to appropriate values and ethicalstandards in all foundation business.Understand the basics of:Ethics ManagementKnow:q Laws, regulations and guidance forBe able to:q Work with the board to lead afoundations that relate to ethicsqqqqThe Foundation’sOrganizational Values,History and Cultureprocess to develop the foundation’sethical standardsCreate awareness of ethical issuesand encourage a transparent culturein which ethical policies areunderstood and lived out at allorganizational levelsPrevent and manage ethicalbreaches as they arisePrevent conflict of interest problemsWelcome and manage publicinterest in the foundationq The basic content of the documentsq Relate the experience of the founda-that created the foundationThe history of the foundation’s pastgrantmaking and program activitiestion and its present-day realitiesback to the values of the foundationEmploy foundation values in everyday operations, such as staff reviewsand orientation of new board andstaff membersWork with the board to lead achange management process todevelop the foundation’s valuesstatement and bring to life suchvalues throughout the foundationqqqCritical Core CompetenciesCommunication, Decisionmaking, Management and Vision Setting Council on Foundations Inc.Council on Foundations11
Competencies for Identity Management4. Work with the board and staff to ensure proper care and development of the foundation’s history, culture,reputation and image.Understand the basics of:The Foundation’sOrganizationalHistory and CultureKnow:Be able to:q The basic content of the documentsq Institute and manage a communica-that created the foundationThe history of the foundation’s pastgrantmaking and program activitiestion plan and system for expressinga powerful and clear image of thefoundation in all its work that isconsistent with its mission, historyand cultureLead organizational changeqqPublic Relationsq Sector positions on emerging issuesin philanthropy and in the field(s) inwhich the foundation focusesq Represent the foundation effectivelyq Develop a work culture and impleqqment processes to ensure that staffrepresent the foundation effectivelyManage criticism and controversyeffectivelyWork effectively with the mediaCritical Core CompetenciesCommunication, Organizational Development, Planning and Vision Setting12cof.org Council on Foundations Inc.
Competencies for Staff Management5. Ensure that staff are properly selected, supported and guided and that their professional developmentis nurtured.Understand the basics of:Adult LearningKnow:q The principal tools and resourcesfor identifying personal and professional training programs forfoundation staffStaffingq The principal state and federal lawsqqqqand regulations affecting staffingStrategies and tools for hiring newstaff and assessing the performanceof current staffThe principal options in technologysystems to support staffSector trends that may effect futurestaffing or benefits requirementsInclusive practicesBe able to:q Create staff self-assessment or otherassessment optionsq Develop programming and aninstitutional culture that supportspersonal and professionaldevelopmentq Make effective and law- andqqqqqqregulation- abiding decisions inhiring, firing, placement, promotion,termination and compensationDirect staff effectivelyDelegate effectivelyEnsure appropriate and fair writtenhuman resources policies, includingsalary and benefits packagesSupport staff giving andvolunteerismMake decisions about leveragingtechnology to support staffefficiencyActively encourage diversecandidates to assume foundationleadership rolesCritical Core CompetenciesCommunication, Decisionmaking, Management,Organizational Development, and Personal and Professional Development Council on Foundations Inc.Council on Foundations13
Competencies for Financial Management6. Work with the board and staff to develop asset investment management and financial administrationstrategies and systems that are effective and aligned with the foundation’s vision/mission, and ensure thatsuch strategies and systems are implemented well.Understand the basics of:Federal and State Lawsthat Relate to FoundationFinancesFinancial AccountingKnow:q The fundamentals in the lawsrelating to foundation financialsystems, such as UMIFAq The fundamental concepts ofqsystems and standards for soundaccounting, such as GAAPThe role of internal controls andaudits in foundationsBe able to:q Ensure that board and staff knowqq Critically read financial statementsq Establish effective and transparentinternal controls and record keepingq Create and recommend an annualqqq14cof.organd adhere to all relevant state andfederal laws and regulationsEnsure that the budget complieswith legal and fiduciary requirementsbudget that supports the foundation’s vision and/or missionAssess the foundation’s financialperformance relative to the annualbudgetEnsure and manage periodicexternal financial reviews and auditsIdentify and manage accounting“red flags” Council on Foundations Inc.
Competencies for Financial Management (continued)Understand the basics of:Investment and FinancialPlanningKnow:q Principles and concepts of portfoliomanagement for foundations,including the management ofendowments, trusts and institutionalinvestmentsq Staffing/management models forportfolio managementq The roles and fiduciary responsibilities of the CEO, the board, theinvestment committee and financialadvisorsq The major restrictions imposed bythe Internal Revenue Code, withimplications on how these restrictions affect the operations of thefoundationq The principal components ofrelevant tax laws, such as the TaxReform Act of 1969q The current thinking, trends andbenchmark data on appropriateuses of administrative expenses forlike-sized foundationsBe able to:q Establish an investment modelqqqqqqqqappropriate to the type and natureof assetsGather credible adviceWork effectively with the investmentcommittee and financial advisorsImplement the instructions of theboardManage financial systems and issuesEnsure appropriate review, includingcompliance with reporting requirements in accordance with laws andregulationsArticulate the strengths and limitations of the latest products withrespect to the foundation andthe boardWork effectively with the board, theinvestment committee, and financialadvisorsAssess accounting and investmentperformanceCritical Core CompetenciesDecisionmaking, Management and Planning Council on Foundations Inc.Council on Foundations15
Competencies for Programmatic Management7. Work with the board and staff to develop programming, grantmaking and grant management strategies andsystems that are effective and aligned with the foundation’s vision/mission and ensure that such strategiesand systems are implemented well.Understand the basics of:GrantmakingKnow:Be able to:q The foundation’s past grantmakingq Understand, communicate with andpractices and historyHow the grantmaking programreflects the mission, vision andvalues and goals of the foundationThe fiduciary and legal responsibilities for making qualified grantsTypes of grants that are disallowedby the tax laws, such as the TaxReform Act of 1969work well with representatives fromgrant recipient organizationsIdentify and advocate for the bestgrantmaking or social investmentstrategy to meet foundation goalsDevelop transparent processes forgrants management and recordsmanagement, including duediligence and oversightMake information technologydecisions and manage informationtechnology in a way that supportsan efficient and effective grantmaking strategyEnsure that the grantmaking isaligned with the foundation’smission, values and guidelinesMonitor grantmaking reportingrequirementsAward, oversee and documentgrants in a manner that complieswith laws, regulations, and foundation ethicsEnsure that grantmaking createsvalue and incorporates lessonslearnedEnsure that grants are evaluatedqqqqqqqqqqqCritical Core CompetenciesDecisionmaking, Management, Organizational Development and Planning16cof.org Council on Foundations Inc.
Competencies for Legal Issues Management8. Work with the board and staff to develop legal strategies and systems that are effective and aligned with thefoundation’s vision/mission, and ensure that such strategies and systems are implemented well.Understand the basics of:Federal and State Lawsand Regulations Relatingto FoundationsKnow:q Sector benchmarks from authoritative sources on the application ofstate and federal lawsBe able to:q Translate federal and state laws andqqFoundation Guidanceand Regulationsq Donor’s intent in establishing theqfoundationThe legal charter of the foundationregulations into foundation systems,policies, and proceduresWork with legal counsel and theboard to identify and manage legalissuesAssess and manage and/or refer tolegal counsel potential conflicts withstate and federal laws andregulationsq Convert foundation guidance andqbylaws into systems, policies andproceduresPrevent, identify and managebreaches in foundation guidanceand bylaws, including conflictsof interestCritical Core CompetenciesDecisionmaking and Management Council on Foundations Inc.Council on Foundations17
Competencies
Competencies are the skills and knowledge needed either to perform specific Private Foundation CEO Functions or to perform functions other sectors have but are substantively different in the philanthropic sector. Functional Competencies build on the Core Competencies. As the name implies, Function
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teamwork competencies, strategic action competencies, global awareness competencies, self-management competencies and communication competencies. Strategic action competencies Strategic action competencies refer to the manager’s abilities to grasp the overall strategy of the company and ensure employees’ efforts are in line with the strategy.
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