INsights: Advancing People of Color to Leadership

An excerpt from a briefing paper prepared by Barry Rosenberg, Director of the Center for Human Service Leadership

To counter racial/ethnic discrimination and well-documented barriers to advancement, many have called to advance People of Color to top leadership positions (both board and executive) in nonprofit organizations; especially in those that serve majority-minority populations. Some have even called for White leaders to step aside to make room for leaders of Color.²⁰

Under-representation of People of Color (particularly Black and Hispanic / Latinx) in nonprofit leadership positions has been documented for two decades, and has remained consistent, with modest improvements.

• 87% of Chief Executive Officers (CEOs) are White/Caucasian/European (2019) compared to 90% in 2015.^{2, 3}
• 83% of Board Chairs (2019) are White/Caucasian/European compared to 90% in 2015.^{2, 3}
• 78% of Board Members (2019) are White/Caucasian/European compared to 84% in 2015.^2,3
• Faulk et al found that 79% of CEOs and Board Chairs are non-Latinx White, compared to 60% of the general population and 68% of the nonprofit workforce.¹⁰
• 10.3% of the CEOs at nonprofit foundations are People of Color.⁸
• Delmar DivINe tenant EMD Consulting reports that since 2018 it has completed 43 executive and senior level searches, of which 30% placed have been People of Color: Executive – 39%, Development 21%, Program 20%, Finance / Administration 25%, DEI 100%, Marketing 0%.¹⁵
• CEOs of Color are more likely (55%) than White CEOs (22%) to work for identity-based orgs.⁷
• CEOs of Color are more likely (20%) than White CEOs (11%) to be founders.⁷
• CEOs of Color are more likely (33%) than White CEOs (8%) to succeed a predecessor of Color.⁷

The Building Movement Project conducted major studies in 2017 and 2020 comparing the aspirations, backgrounds and experience of nonprofit CEOs and top leaders who are of Color, with those who are White. Results over the two surveys have been consistent. Some key findings:

• Women of Color are more likely than men of Color and White people to hold an advanced degree, to work in administrative (rather than senior leadership) positions, to be paid less, to have fewer mentors and to report that gender was a negative influence on career advancement. “Of those with advanced degrees, 57% of women of Color held CEO/Senior Management positions compared to 71% of Black men, 59% of White women and 75% of White men.”¹
• People of Color are more likely (52%) than White people (36%) to aspire to be CEO.⁴
• Among CEOs of Color, 49% said race negatively impacted their advancement (35% in 2016).⁷
• Educational achievement among CEOs of Color is equivalent to that of White CEOs.⁴
• CEOs of Color report higher degrees of frustration and challenges, such as lack of role models, lack of social capital / networks, stress in needing to lead DEI efforts and lower salary.⁷
• CEOs of Color report lower levels of board assistance, communication and trust; particularly when succeeding a White CEO.⁷

Beyond the need for equity in opportunity, does racial / ethnic identity matter in top nonprofit leadership?

Measuring the impact of discrete factors on organizational performance is exceedingly complicated, and measures of success are variable and socially constructed. Nonetheless, research and experience indicate that diversity, when well-managed, improves planning, decision-making and problem-solving.

Some evidence points to differences in the leadership styles of ethnic minorities, as compared to White leaders, with a more transformative style, good interpersonal skills, humility and steady leadership, resulting in higher rankings from employees on several dimensions.¹⁷ Additional research suggests that the BIPOC leaders’ lived experience, of being different or an outsider, may influence leadership attributes and skills, such as greater sense of calling, accountability to communities in need, ability to relate to diverse individuals, and empathy that help build trust with majority minority populations.¹³

How are Nonprofits Responding?

• 68% of Black human resource professionals believe their organizations aren’t providing enough opportunities for Black employees, as compared to 35% of White HR professionals.¹⁸
• Just 20% of nonprofits have a formal diversity strategy. Two thirds identify obtaining and maintaining diversity on the board and senior leadership as a diversity challenge. Between 25 – 40% are implementing various specific practices (e.g. mentoring) to promote advancement.¹⁶
• CEOs of Color, who are contemplating leaving their positions, are more likely than White CEOs to actively mentor People of Color (49% to 23%); actively recruit POC candidates (40% to 24%); widen networks in communities of Color (44% to 33%); and encourage their boards to consider POC candidates (29% to 26%).⁷

What is happening in St. Louis?

• For 17 years, the St. Louis Business Diversity Initiative Fellows Experience has offered a 12-month personal-professional leadership program to help individuals of Color advance in their organizations. Over 1000 have participated. https://greaterstlinc.com/fellows

• St. Louis Racial Healing & Justice Fund requires Grantees to be Black or Brown led.

• Midwest BankCentre coordinates “St. Louis On Board” – periodic gatherings of nonprofits seeking Board members and individuals seeking Board positions. https://www.linkedin.com/groups/12604028/

• Network for Strong Communities (NSC) has been exploring and intends to offer programming in Fall 2023 focused on how organizations and funders support organizational leaders of Color.

To learn more about organizational strategies for improvement, how White people can be allies, accomplices, and co-conspirators, and more about the advancement of people of color to nonprofit leadership, please register for INsights here.