
As an undergraduate arts management major, I observed an intriguing pattern when speaking with nonprofit leaders visiting my classes. When asked about how their boards contributed to philanthropic work at their organizations, these professionals shared a sense of apprehension surrounding the popular board fundraising mechanism of “give-get policies.” These practitioners were concerned that requiring board members to contribute a minimum amount as a condition of membership could serve as a barrier to engaging diverse board members in meaningful giving. This sparked my interest in exploring the relationship between diversity, equity, and inclusion (DEI) and fundraising policies on nonprofit boards.
The Changing Landscape of DEI in Nonprofit Boards
Growing diversity has been a major topic of discussion for nonprofit organizations in recent years as the sector scrambles to address a new understanding of systemic inequities as illustrated by the 2020 Covid-19 pandemic. While the political landscape surrounding equity has drastically changed in recent months due to anti-DEI executive orders rolled out by the Trump administration, nonprofit organizations are increasingly pursuing greater diversity, equity, and inclusion in order to better engage with and represent their constituencies. DEI has been found across multiple studies to promote organizational development and community building as well as actual firm performance. However, scholars have found that the nonprofit sector is still predominantly White and that there remain barriers to entry for People of Color, women/nonbinary people, and younger people. Though the nonprofit sector includes organizations working hard to address systemic inequity, it is clear that the field itself continues to lack diverse representation.
The nonprofit sector’s ongoing focus on diversity covers more than just variety in people and programming – rather, the mission-driven nature of a nonprofit leads it to consider diversity with holistic goals of reflecting the nonprofit’s cause, mission, and constituents. While not all nonprofits serve diverse constituencies and therefore shouldn’t all be held to the same standard for including diverse demographics, it is certainly true that many nonprofits view increasing diversity and representation of historically underrepresented demographics as a board priority.
How is Diversity Related to Fundraising Policy?
With the knowledge that fundraising policies are an area of scrutiny for those focused on inclusive board practice, I studied the diversity conditions under which nonprofit boards require their members to give minimum annual gifts in an attempt to analyze whether such fundraising policies constitute a financial barrier to board access for marginalized demographics. Previous scholarship has indicated that in part due to systemic wealth and social inequities, the nonprofit field is predominantly white, male, and over the age of 50. Accordingly, I hypothesized that boards with higher concentrations of underrepresented age, gender, and racial demographics would be negatively correlated with minimum annual gifts.
Key Findings of the Study
Through a logistic regression using data from BoardSource’s 2021 Leading With Intent Survey, I first examined the correlation between my independent diversity variables (created by measuring the concentrations of people under the age of 45, female and nonbinary board members, and non-White board members) and the presence of minimum annual gifts. None of the relationships resulted in a p-value below 0.05, so I concluded that they were not significantly correlated.
I then examined the correlation between my diversity variables and the scale of minimum annual gifts. The age and gender variables were not significantly correlated with minimum gift size, but the proportion of non-white board members had a p-value of 0.023 and was actually positively correlated with gift size. This might be explained by the presence of greater wealth (regardless of other demographic factors) on boards that ask for minimum gifts.
On the whole, these results suggest that boards with higher concentrations of marginalized demographics have no particular inclination toward utilizing or neglecting to utilize a give-get policy. Therefore, removing a minimum gift requirement or lowering its amount will not guarantee that board composition will become more diverse in the future.
Why Is This Important?
Nonprofit boards hoping to diversify their membership might assume that financial obstacles are the primary barrier to entry for underrepresented people. With this assumption, they might decide that removing minimum annual gift requirements will help them to recruit more diversely. Through this study, I learned that to make such a decision would be unsubstantiated by evidence. Furthermore, the null hypothesis contributes to the expanding field of scholarly research finding that non-White people have the same capacity to be active donors and contributors to nonprofit organizations as White people.
This study is an important step in understanding how nonprofits can meaningfully engage with diverse demographics. When it comes to barriers to diversity on boards, it’s not just about money. Nonprofit organizations hoping to be more representative of their communities must be willing to reflect critically and work to address systemic issues and barriers for marginalized people.
Lucia Walker is a May 2025 graduate of the O’Neill School of Public and Environmental Affairs with a Bachelor of Science in Arts Management. Her honors thesis is titled “It’s Not Just About the Money: Examining the Diversity Conditions Under Which Nonprofit Boards Require Minimum Annual Gifts.” While a student at Indiana University, Lucia served as Student Manager for The Singing Hoosiers and Undergraduate Coordinator for O’Neill Student Leadership Programs. After graduation, Lucia will pursue graduate studies in Arts Administration and Business at the University of Cincinnati.