Nonprofit organizations play a crucial role in addressing the needs of their communities. When nonprofit boards lack diversity and understanding of the community's needs, however, their organizational effectiveness can be hindered. Research data highlight the challenges that nonprofits face when board members do not reflect the community or are far removed from the day-to-day functions of the organization:

• BoardSource’s Leading with Intent report found that nonprofit boards are primarily composed of white individuals, with only 20 percent of board members identifying as people of color.
• Lack of diversity can lead to a disconnect between the board and the communities they aim to serve, resulting in decisions that may not adequately address the community's challenges.
• A Building Movement Project survey revealed that board members who lack understanding of the daily operations and governance of the organization may struggle to effectively support the executive leader.
• Philanthropy has a distinct role in supporting the equity and inclusion needed in nonprofit organizations to ensure the climate and conservation community is up to the task of confronting the biodiversity and climate crises.

To overcome these challenges, nonprofit organizations must prioritize diversity, equity, and inclusivity (DEI) within their leadership structures. Here are a few ways to increase board diversity and ensure that the organization’s work is truly impactful and responsive to the community's needs.

• Boards must actively recruit and retain members from diverse backgrounds, ensuring that the experiences and needs of the community are represented.
• Board members should actively seek to understand and support the day-to-day operations of the organization, providing necessary guidance and resources to support the executive.
• Nonprofit executives must be empowered to challenge the status quo and advocate for change, even when it may be uncomfortable for or unpopular with board members.
• Board members must recognize their biases and blind spots and work to addressing them.

In addition to prioritizing diversity, inclusivity, and equity within nonprofit leadership structures, foundations and donors can play a critical role in supporting nonprofits led by executives of color. Philanthropy can be the catalyst for change in organizations, especially those that have been historically underfunded and underserved:

• Foundations can support organizational anti-racism initiatives, including DEI training for board members and staff.
• Donors can provide funding for capacity-building initiatives that will help nonprofits become more effective and responsive to the needs of their communities.
• Funders can also provide safeguards for nonprofits when the status quo is disrupted, such as during times of social unrest or political upheaval.
• By providing flexible funding that can be used to support emergency needs or unexpected challenges, foundations and donors can help ensure that organizations are able to continue their work even in the face of adversity.

Research has shown that philanthropic support can have a significant impact on the effectiveness of nonprofit organizations. A report by the Center for Effective Philanthropy found that nonprofits that receive grant funding from foundations are more likely to have strong leadership, effective strategies, and clear goals than those that do not receive grant funding. Additionally, a study by the Bridgespan Group found that organizations led by executives of color are more likely to be under-resourced and underfunded than those led by white executives. By providing targeted funding and support to these organizations, philanthropic organizations can help address these disparities and promote greater equity within the sector.

Foundations and donors have a critical role to play in supporting nonprofit organizations led by executives of color. By providing funding and support for anti-racism initiatives, capacity-building initiatives, and emergency needs, philanthropic funders can help ensure that nonprofits are able to effectively serve their communities. With the right support, nonprofit organizations can become powerful agents of change, working toward a more just and equitable society for all.

Marion Kendall, M.Ed., MSW, is CEO of LifeWay Network.