As someone who has worked in the nonprofit sector for many years, I can attest to the importance of diverse representation in leadership, particularly at the director level and above. While progress has been made, and most nonprofits truly believe in values of inclusion and equity, the reality is that the sector still struggles with issues of diversity and representation.

Research has consistently shown that diverse teams are more effective, innovative, and better able to meet the needs of their communities. When leadership teams are diverse, they bring a range of perspectives and experiences to the table, which can lead to better decision-making and more innovative solutions to complex problems. Yet, despite this evidence, the nonprofit sector continues to lag in diversity, particularly in leadership positions. According to a 2019 report by BoardSource, people of color make up only 20% of nonprofit boards, despite comprising 40% of the US population. Only 45 percent are women. The numbers are even lower for nonprofit CEOs, with only 12 percent of nonprofit CEOs being people of color, and only 30 percent being women. And newer statistics don’t show significant change.

More diversity is not just a moral imperative, it's a strategic one as well.

According to a report by the Building Movement Project, a national nonprofit organization, nonprofit leaders of color and those with lived experience in the communities they serve are more likely to understand the needs and experiences of the people they serve. This understanding can lead to better programs and services that are more responsive to the needs of the community.

Diverse leadership can also help build trust and credibility, which are essential for effective community engagement and partnerships.

Furthermore, research has shown that diverse leadership is also linked to better financial performance. A study by McKinsey & Company found that companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians. When teams are composed of individuals with different backgrounds, experiences, and perspectives, they are more likely to generate innovative ideas and make better decisions.

What can nonprofits do to promote diverse leadership?

First and foremost, it's important to recognize that diversity is not just a checkbox to be ticked, but a commitment to be embraced. Nonprofits need to be intentional about recruiting and retaining diverse talent, and creating an inclusive culture where everyone can thrive. This includes providing training and development opportunities for underrepresented staff, and actively seeking out diverse candidates for leadership positions.

Involving the community in the selection process can ensure that the perspectives and needs of the community are reflected in the organization's leadership. This approach can also increase community engagement and trust between the organization and the community.

Nonprofits also need to be willing to have difficult conversations about race, privilege, and power. This means acknowledging and addressing the systemic barriers that exist in the sector, such as unconscious bias in hiring and promotion practices, and the lack of mentorship and sponsorship opportunities for people of color.

Finally, nonprofits must prioritize diversity and inclusion at all levels of the organization. This means not only diversifying leadership, but also creating a diverse and inclusive workforce across all levels and departments. Organizations should have a clear plan for increasing diversity and equity at all levels of the organization, including leadership. This plan should include specific goals, strategies, and timelines for achieving greater diversity, including the creation or strengthening of a culture of inclusion that values and celebrates diversity. This means fostering an environment where all voices are heard and respected, and where individuals feel comfortable bringing their whole selves to work.

Nonprofits that prioritize diversity and inclusion in this way will be better equipped to meet the needs of their communities, and will be more effective and sustainable over the long term. While progress has been made, there is still much work to be done to increase diversity at all levels of nonprofit leadership. By taking deliberate and intentional steps to increase diversity, equity, and inclusion, nonprofit organizations can better serve their communities and achieve their missions.

More Info:

• "Race to Lead Revisited: Obstacles and Opportunities in Addressing the Nonprofit Racial Leadership Gap." Building Movement Project. https://www.bridgespan.org/insights/executive-summary-bmp-race-to-lead-report

• “Nonprofit Leadership Is Out of Step with America’s Changing Demographics.” Urban Institute. https://www.urban.org/urban-wire/nonprofit-leadership-out-step-americas-changing-demographics

• “How Racial Equity Supports Better Grantmaking Practices.” https://learningforfunders.candid.org/content/blog/how-racial-equity-supports-better-grantmaking-practices

• Racial and ethnic diversity is lacking among nonprofit leaders – but there are ways to change that.” The Conversation. https://theconversation.com/racial-and-ethnic-diversity-is-lacking-among-nonprofit-leaders-but-there-are-ways-to-change-that-174490