Nonprofit Boards Remain Overwhelmingly White—Here’s How to Change That

Nonprofits often pride themselves on being more socially conscious than for-profit corporations. There is at least one area, however, in which the nonprofit sector is not doing much better than its for-profit counterpart: diversity on governance boards. 

More than three-quarters (77 percent) of nonprofit board chairs identify as White, according to research by BoardSource, and nearly two-thirds (63 percent) of board members overall identify as White. In comparison, 75 percent of directors on the boards of Fortune 500 companies are White. (Data were not available for board chairs.)

The lack of diversity on nonprofit boards is not confined to race: 60 percent of members are 55 or older. And the volunteer nature of most board positions means boards often skew toward wealthier individuals. These dynamics can go beyond bad optics for nonprofits; they can make them disconnected from the communities they’re supposed to serve. 

“Our boards need to have credibility with the communities that we are serving so that the decisions that we are making at the governance level are reflective of the input and the needs and the hopes and dreams of those communities,” said Tara Huffman, the chief program and strategy officer of BoardSource, which provides consulting services for nonprofit boards. 

The lack of diversity on nonprofit boards is not confined to race.

Speaking at a recent webinar hosted by NPQ, Huffman and other nonprofit leaders laid out ways organizations can make boards more dynamic and diverse, from recruitment to succession.

Casting a Net Near and Far 

One reason nonprofit boards have skewed Whiter, older, and wealthier is that organization leaders tend to reach for their own contacts when seeking new members. More than 95 percent of nonprofit board chairs and CEOs say they look to their own networks to find new members, far surpassing other methods, according to BoardSource. 

“If your personal and professional network tends to be homogenous—look a lot like you, think a lot like you, come from the same places and spaces that the board members or the CEOs come from—then that helps to explain why boards would have difficulty recruiting more diverse candidates,” Huffman said. 

One often-overlooked source of candidates is close to home: leaders within the communities nonprofits serve. By making board diversity an ongoing priority, nonprofit leaders can build a pipeline of promising candidates.

“Every time we’re thinking about names, we’re gathering them both at the committee level, as well as at the full board level. And then we prioritize and cultivate those board members,” said Monika Kalra Varma, the president and CEO of BoardSource.

BoardSource’s newest board member joined after a two-year process of “getting to know each other,” Varma said. People of color now make up 77 percent of the organization’s board.

In addition to looking close to home, nonprofits should also consider casting a wide net and implementing a formal recruitment process. As part of its push to diversify its board, Outward Bound started with an audit of the individuals and aptitudes that were not represented on its board.

“We named the skills that we were looking for….What are the skills we need to move this organization forward?” said Outward Bound CEO Ginger Naylor. “We posted on LinkedIn. We made a web page where people could come and apply and posted exactly what we’re looking for, what was important to us.”

Onboarding and Culture

The work of creating a more diverse board does not end once a new member joins. Onboarding plays a critical role in making new members feel welcome and competent, especially for those who might be new to the experience.

Nonprofit leaders stress that onboarding should be an ongoing process, not a one-time session.

“It used to be that I would have a big two-hour meeting. I would dump the budget in front of you, throw out a bunch of acronyms, give you a pat on the back, and say, ‘OK, great, here we go’,” Naylor said. “Board members would feel lost.”

The work of creating a more diverse board does not end once a new member joins.

Varma, the BoardSource CEO, says proper onboarding can take an entire year or longer, and it consists of pairing the new member with a “board buddy,” a veteran member who helps show them the ropes.

At a minimum, onboarding should make new members feel comfortable with the organization’s governance and budgetary processes, as well as provide them with open channels of communication with staff and board leaders. 

Planning for Succession 

Building a diverse pipeline of talent won’t count for much if board seats seldom open for newcomers. A board succession policy, including term limits, can ensure a regular rotation of people and perspectives. 

“We need to normalize rotating people on and off the board in a respectful way that is not disruptive to the organization, but that always allows people to give us their best and then take their best to be in service to another organization,” said Huffman, the BoardSource strategy officer.

Clear succession policies can also help ease potential conflicts when parting ways with longtime board members who might resist change.

“There eventually comes a time when [you have to] bless and release folks.” Huffman said. “Just as there should be succession planning around senior leadership—not just the CEO, but other members of senior leadership—there should be succession planning around board leadership.”

The Money Question

There are also structural factors that contribute to the lack of diversity on nonprofit boards. Not everyone can make the commitments—of time and money—that often go along with serving on a board.

Being a board member remains a largely voluntary endeavor: about 0.5 percent of nonprofits pay their board members. Moreover, more than three-quarters (77 percent) require members to make monetary contributions to the organization, according to BoardSource research.  

Outward Bound, for its part, has ended so-called “give-get” policies regarding fundraising and financial contributions from board members. 

“It did turn off potential board members,” said Naylor, the organization’s CEO. “There were folks that we wanted to bring into the organization [for whom] it was scary…and I think that kept us from recruiting some of the folks that we wanted to recruit.”

Board diversity is not incompatible with fundraising, but it may require a more expansive view of how members can contribute.

“[Board members] can be involved in the resource development of the organization beyond just writing a big check,” Varma said. “There are really innovative ways to reach out to different folks.” 

The DEI Climate

It is, to be sure, a time of increasing uncertainty and anxiety when it comes to diversity policies writ large following the 2023 Supreme Court ruling against affirmative action programs in higher education. The same group that brought the college affirmative action suit, the American Alliance for Equal Rights, is now targeting nonprofits in cases making their way through the courts.

“These conversations are happening,” Huffman said. “We are experiencing backlash. People who are already nervous are even more nervous than before. People who are already resistant are feeling a little bit more empowered in their resistance.” 

Nonprofits need not put efforts to diversify their boards on hold, but it is important to be aware of these shifts. To the extent possible, it may be a good idea to consult with legal experts in drafting such policies.

If anything, the current climate may underscore the importance of having boards with a common vision around inclusion.

“There are trends in language, but the theme [of diversity], the goal behind this, isn’t changing,” Naylor said. “And this is where we’re going. So maybe if you can’t get there, this may not be the right place for you.”