Private foundations that experience significant asset growth are often presented with an opportunity for transformation and increased impact. At the same time, scaling brings new complexities that require thoughtful planning. Foundation boards should ensure that the increased resources are managed effectively and remain aligned with the foundation’s mission and values. Here is a list of key priorities to consider and an action plan to successfully navigate the transition.
Key priorities
Mission and strategic focus
- Review the foundation’s mission statement
- Define impact goals at larger scale
- Set or confirm funding priorities (for example, geographic or issue area focus)
Grantmaking strategy
- Develop a grantmaking plan aligned with mission and scale
- Clarify how grantees are sourced and selected
- Reassess grant size, duration, and type (for example, multiyear general operating support)
Governance
- Consider board expansion or realignment
- Ensure roles are well defined
- Confirm succession and decision-making processes
- Provide board training and education
Staffing and infrastructure
- Consider professional staff (for example, an executive director)
- Assess and stengthen administrative systems
Financial management
- Review investment strategy
- Develop a plan to meet the increased 5% payout requirement
Impact measurement
- Reassess data collection and success metrics
- Establish a process for learning and adaptation
Family engagement
- Clarify family roles
- Support learning and participation for the rising generation
- Develop conflict resolution mechanisms
External partnerships
- Confirm legal, financial, and programmatic advisors
- Consider collaboration with other funders for learning and impact
Communications
- Re-evaluate desired visibility level
- Maintain communication and transparency with grantees
Legal and compliance
- Update governing documents, as needed
- Conduct regular audits and legal reviews
Action plan: Prioritization and next steps
1. Immediate priorities
- Evaluate mission and strategic focus
- Confirm governance structures
- Update grantmaking strategy and processes
2. Medium term
- Review infrastructure
- Confirm financial management
- Engage family members and partners
3. Long term
- Confirm evaluation and learning framework
- Develop communications strategy
- Refine operations
Contact Us
Brown Brothers Harriman & Co. (“BBH”) may be used to reference the company as a whole and/or its various subsidiaries generally. This material and any products or services may be issued or provided in multiple jurisdictions by duly authorized and regulated subsidiaries. This material is for general information and reference purposes only and does not constitute legal, tax or investment advice and is not intended as an offer to sell, or a solicitation to buy securities, services or investment products. Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code, or other applicable tax regimes, or for promotion, marketing or recommendation to third parties. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed, and reliance should not be placed on the information presented. This material may not be reproduced, copied or transmitted, or any of the content disclosed to third parties, without the permission of BBH. All trademarks and service marks included are the property of BBH or their respective owners. © Brown Brothers Harriman & Co. 2025. All rights reserved. PB-08410-2025-03-28
