What is the pathway to becoming a foundation CEO? Last year, the Council on Foundations addressed that very question by releasing an enlightening report titled, Career Pathways to Philanthropic Leadership 2009 Baseline Report, which examined the professional and individual characteristics of 440 foundation and grantmaking executives who were appointed during a five-year period (2004-2008). Today, at EPIP’s National Conference, we hear from Renee Branch from the Council as well as Donna Bransford from DNB Strategic Consulting.
The baseline report revealed an eye-opening view of what the pathway to philanthropic leadership really looks like. One thing is clear: most foundation CEOs are not program officers who have advanced to the top position.
Foundation CEOs are White People Over the Age of 41
Not surprisingly, 81 percent of foundation CEOs hired from 2004-2008 were white. As far as gender, the hires were pretty split 50/50 amongst males and females. Again, not surprisingly, 88 percent of foundation CEOs were over 41. Fewer than 5 percent were under the age of 31.
When the Council looked at current foundation CEOs, they found that the age was even higher. Over 70% of current foundation leaders are over 50. And given the economy and the desire for older leaders to continue in this work, we really don’t know when or even if they will retire. To compound this uncertainty, 79 percent of the foundations don’t even have succession plans in place.
Most Foundations Hire From the Outside
Out of over 400 foundation CEOs hired from 2004-2008, only 20 percent of them were hired from within. Which means that 80 percent were hired from outside the foundation. Where did they come from, you ask? Well, most foundation CEOs had already been a CEO in another industry. Over 70 percent of them came from completely outside of the foundation field – primarily from business or from nonprofits.
Advanced Education and Professional Development are Key
The foundation CEOs surveyed shared the types of professional development that helped them move forward in their careers. 46 percent listed board service as an asset to their leadership. 76 percent had participated in professional development, with women more likely to have participated in trainings and workshops.
In addition, advanced education proved a key success factor for foundation CEO hires. In particular, education seemed to be even more important when it came to leaders of color. 92 percent of black foundation CEOs have a Master’s degree, while 100% of Hispanics and Asians possess a Master’s. On the flipside, only 78 percent of white foundation CEOs have a Master’s degree.
Executive Search Firms are a Gift and a Curse
The Council’s report found that 45 percent of foundation CEO hires were managed by a search firm. On the one hand, the search firms were credited with bringing forth a more racially diverse pool of candidates. But on the other hand, the search firm approach tends to look for a “rockstar” from outside the foundation world to present to trustees as part of the recruitment process. So you have to wonder, is this why foundations aren’t hiring from within?
Overall, the Council’s research makes the “race to the top” look more like running in place for current foundation staff who want to advance to the top job as CEO. It may be a harsh reality, but the numbers say: it ain’t happening. No way, no how.
