FUNDRAISING DOs & DON’Ts #7

A few weeks have passed since our last “FUNDRAISING DOs & DON’Ts” entry, so I thought we’d return with a vitally important subject affecting the domain of philanthropy and the world-at-large. Diversity, equity and inclusion (DEI) are three (3) guiding principles for people and groups who seek to build a better society everywhere. DEI is also shaping the strategies and approaches that charities use to raise funds and create impact.

DO make DEI a priority of your organization’s fund development strategies. Before the pandemic, I naively thought the evil spectre of racial injustice was behind us. Only after the tragic death of George Floyd did I realize that bigotry and hatred were broiling intensely under the surface for a long time. The ugly events of May 2020 exposed it.

Diversity might exist in many spaces across society. However, genuine acceptance of marginalized groups within these spaces is absent. Cultural groups may be physically represented in different workplaces, professions, communities and other settings, yet they each don’t necessarily feel that they have a voice within these environments.

Preciously few of these individuals occupy roles of influence and leadership in companies, governments and educational institutions. The lack of any sense of inclusion across all sectors prevents the true value and power of diversity from ever being realized. In spaces where multiple cultures have a voice, the fresh perspectives, values and experiences they provide benefits everyone. Significant changes in our way of thing and removal of barriers to community participation for people of all backgrounds is required for true inclusivity to take root.

Despite existing to advance equality and inclusivity, non-profits are not immune to racial discrimination or a lack of diversity. As Lihn McCool of The Munshine Group summarizes:

“Nonprofit organizations led by people of color receive less money than those with white leaders, reinforcing the social issues nonprofits say they are trying to overcome. Black, Indigenous, and Latinx nonprofit leaders receive only 4% of total grants and contributions in philanthropic funding today. According to the May 2020 Echoing Green and Bridgespan Racial Equity and Philanthropy Report, the revenues of Black-led organizations are 24 percent smaller than their white-led counterparts.” (Improving DEI In NonProfit Fundraising)

Overall, BIPOC occupy significantly fewer senior management and board roles, and on average earn considerably less than white people in non-profits.  Consequently, the voices of BIPOC and other cultural communities are severely limited in an unacceptably high number of non-profits that claim to be committed to the pursuit of diversity and inclusivity.

The dearth of people from varying cultures in key positions in the charitable sector not only has a regressive impact on the quest for racial justice, it also debilitates non-profit finances. Potential donors from BIPOC and other traditionally marginalized groups are frequently overlooked even though the aggregate giving capacity within these groupings has increased substantially during the last two decades. Vast sums of income that could have created monumental positive change in our communities are left on the table.

Having a DEI policy or statement of principles is not enough. Organizations must proactively recruit diverse talent so they can utilize their unique viewpoints, insights and experiences to develop creative engagement and cultivations strategies with donor prospects from an assortment of cultural communities. Adopting an inclusive approach to philanthropy enables a non-profit to tap into new pools of sustainable funding and enhance the sector’s ability to deliver solutions to benefit all groups.

DON’T regard cultural diversity as your sole DEI priority. Race and ethnicity should not be the only demographic categories on which charities focus as they incorporate DEI into their fundraising strategies. Age, gender, ability, socio-economic standing, faith, and academic achievement are all components of an optimal DEI strategy.

Building a staff, board and volunteer roster that is representative of all groups in the community heightens an organization’s ability to understand the values, interests and aspirations of each prospective donor. Tru diversity enables an organization to build strong meaningful relations with its donors and embark on a incredible journey to make a better world for everyone.