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Abstract: 

This article explores the intersection of family with family foundations and the unique benefits of enacting best practices in governance architecture—systematic, comprehensive, coherent, governance structures, policies and processes—for family foundations. Governance systems and structures in family foundations often follow formulaic applications of 20th century constitutions and bylaws. We have learned a lot, however, about organizational psychology, and especially the psychology of the board room and of families, and 21st century governance can learn from this rich body of evidence. The remainder of the article explores some of the key psychosocial phenomena present in families and in organizations and how these uniquely operate (and sometimes collide) in family foundations. It then describe practical steps family foundations can take to shore up both the family and the firm against potentially explosive intersections with sometimes jarring consequences for families and family firms. Includes “Example By-Laws” clauses for “specific purpose,” and director roles, titles, and duties.

Keywords: Family Firms; Social Psychology of Families; Social Psychology of Organizations

Affiliations:  1: Tingari Silverton Foundation.