Illustration of writing an article on a laptop

ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


Venn diagram graphic

Workforce diversity is a significant concern for nonprofits with the recent growth of diverse populations in the U.S. In 2017, 87% of the U.S. nonprofit workforce and executive leadership identified as white.

Nonprofit board members in the U.S. also lack demographic, racial and ethnic diversity with less than 20% identifying as people of color. Nearly 30% of nonprofits report they have no board members who identify as a person of color. Consequently, nonprofits continue to have difficulties applying diversity initiatives which affect marginalized, underrepresented individuals’ outcomes, access to needed services, and trust. When nonprofit employees, leaders and their boards are not reflective of the communities they serve, they jeopardize mission attainment and the implementation of ineffective strategies to address social issues.

The importance of workforce diversity

Research indicates workforce diversity is the cultural or demographic characteristics that makes employees unique, which is needed to effectively confront social issues and achieve social good. According to Nonprofit HR's 2019 Nonprofit Diversity Practices Survey results, workforce diversity is the purposeful “recruiting, hiring, developing, and retaining” of…

Read more

Unbalanced scale

There is increasing recognition that philanthropy is founded upon antiquated principles and values of the wealthy elite.

Rockefeller’s and Carnegie’s philanthropy continues to remain the main model for funding nonprofits, yet with increasing diversity (over the next two decades minorities will comprise more than half the population) these models based on white dominant norms will become increasingly irrelevant. Fundraising practices reflect the divisive, destabilizing and limiting function of today’s philanthropy, which is often centered on the needs and wants of white donors. Centering donor needs, rather than community needs, limits potential for better community solutions that are innovative and relevant.

The current fundraising model is donor-centric fundraising, which is based on building relationships and creating tailored approaches to engage donors in giving. While donor-centric fundraising has effectively raised funds for the nonprofit sector, there are challenges to using this approach.

Donor-centric fundraising…

  • Fails to engage donors who identify as Black, Indigenous, and People of Color (BIPOC), therefore missing important parts of the community.
  • Generates scarcity-mindset, competition, and is anti-collaboration.
  • Has messaging that appeals to donors but encourages poverty porn, or imagery that entices donors and elicit strong monetary responses, and reinforces stereotyping.
Read more

Puzzle pieces coming together

The need for collaboration amongst a diverse array of community members has become a recognized focus within the nonprofit sector. For those involved with nonprofit resource development, there has been an obvious redirection of financial gifting to Black, Indigenous, and People of Color (BIPOC) - especially BIPOC-run and BIPOC-serving agencies. This is a step toward equity, but what nonprofit agencies are already well-equipped with the necessary resources? What obligations do white-led nonprofits hold for working with minority community groups and nonprofits in their communities?

Because “relatively high poverty neighborhoods [have] fewer quantities of nonprofit social service providers and…individuals residing in these neighborhoods [have] limited access to the providers that [are] in their communities,” the importance of collaborating between nonprofits serving minorities becomes all the more imperative to building better community.

Working in a white-led nonprofit agency that serves seniors has led me to question what efforts can be taken to improve our outreach to diverse neighborhoods, and I have been connecting with others in my community to inquire what they are doing to intentionally engage with members of minority communities. Diversity is essential because it provides us with insights from multiple perspectives and helps to ensure…

Read more

Illustration of people around a table.

The vitality of a nonprofit hinges on the commitment and enthusiasm of their employees towards the organization's mission. However, the nonprofit sector is currently experiencing a significant exodus of employees. This is the result of various factors such as inadequate compensation and benefits, limited long-term growth, poor work-life balance, and even ineffective leadership.

Recognizing and appreciating all employee efforts is crucial to fostering a sense of worth, thereby ensuring their continued motivation and loyalty. To embark on this journey of cultivating such a culture within your organization, here are five actionable strategies to get you started.

1. Reevaluate your budget

When looking at the budget, make room for all employees. Offer incentives for exceptional performance and advocate for the employees that work tirelessly. Award and recognize dedication and reliability. Foremost, ensure that…

Read more

Weather icons

The COVID-19 pandemic has shown us that a crisis can come in all different shapes and sizes, and it can impact just about anyone and everyone. The nonprofit sector has taken a significant hit during the pandemic and become a strong reminder that nonprofit leaders need to have the skills to plan and guide their organization through a crisis successfully. Nonprofits provide vital resources and services to society, therefore having a higher level of crisis resistance will increase a nonprofit’s effectiveness.

A crisis management plan is essential for all leaders and their organization to have. Some organizations fail to create a plan because it takes time and resources, however, it is important to realize that organizations that lack any type of plan when a crisis hits have a significantly lower rate of survival. There is no “one size fits all” type of crisis management plan, but leaders who have been through and survived significant crises have given the following recommendation for successfully working through one.

Develop a vision and plan of action to get through the crisis

Leaders have to make decisions quickly during a crisis, so when one strikes, nonprofit leaders need to create a plan of action. This plan of action should include a vision of what the organization wants to achieve during the crisis, and…

Read more

ASU Lodestar Center Blog