According to a 2009 study conducted by the Greenlining Institute ("Diversity on Foundation Boards of Directors", www.greenlining.org, April 2009) foundations - which often fund organizations that work with diverse populations - lack diversity themselves.

The report focuses on the nation’s top 46 foundations and their boards of directors, concluding that only one out of four board members is a person of color.

The report concludes that “56.5% have no Latinos on their boards, 37.8% have no African Americans, and a startling 69.6% have no Asian Americans.” Hispanics are the least represented minority group and account for only 8 percent of the 46 organizations’ board members, despite being the fastest growing minority group in the US.

Perhaps the most significant implication of the Greenling Institute’s research is the assumption that if a foundation board on not diverse, and if funding decisions are based on board or trustee members’ notions of what causes deserve to be funded, traditionally under-represented group needs may be deemed unworthy – i.e. due to the lack of diversity in foundation leadership, minority-led organizations receive less funding.

Research shows this assumption to bear some truth.

In the same report, Greenlining states that “foundations with diverse boards are also overwhelmingly the most diverse in their grantmaking; 47% of all grants to people of color-led organizations in 2005 were made by the foundations with the top 10 most diverse boards.”

So, if having a diverse board of directors or senior leadership team has an impact on the distribution of charitable funding, why do foundations remain predominantly homogeneous?

Most likely it is for to the same reason that for-profit boards have been criticized for a lack of diversity: candidates are often found through current members’ personal and professional networks….and recruiting from such a narrow pool greatly reduces the chances of recruiting diverse talent.

In order for foundations to expand their breadth and depth of giving, it is critical that they recruit diverse leaders with various racial/ethnic, cultural and work experiences. This will aid charitable foundations in their efforts to fund the important work of minority-led organizations.

Bridge Partners LLC understands the value of having a diverse leadership team and supports organizations as they aspire to build a more inclusive work environment.

We have written extensively about the advantages of welcoming diverse directors onto for-profit and non-profit boards, as well as senior leadership teams and encourage you to browse our corporate website http://www.bridgepartnersllc.com, as well as our board-focused offering http://www.directorshipinsights.com.