United Way: Diversity Is as Critical for Not-for-Profits as for Corporations

Surprisingly, many not-for-profits have struggled with diversity as much as corporations have. Despite often serving quite diverse populations and despite most often being driven by a calling to social justice, the leadership of many nationwide not-for-profits often are not that diverse, and neither are their boards or donor base. Staff also often struggle with not being crossculturally competent enough to most optimally serve very different populations with different worldviews.

A few years ago the United Way came face-to-face with these hard truths, and despite decades of deep and wide positive impact on communities around the world, the United Way organization decided to embark on a serious revamping of many of the ways they have traditionally approached their work. They have moved from a major focus on fundraising which then distributed the funds among a variety of initiatives to focusing on three strategic areas– financial security, health, and education — in ways that are very results oriented. For example, their goal is to help achieve 100% graduation in the schools within the communities they work with within the next five years.

Further, they recognized that addressing diversity is essential to be effective in each of these three areas. So when I recently delivered a keynote address at their annual staff conference in Washington DC to an audience of over 1000, their collective and individual emotional and intellectual responses to my message on the next generation of diversity work, were off the charts.  Through smiles, tears, handhakes, and hugs staff for all walks of life — racially/ethnically diverse, with disabilities, LGBT, young and older — told me their own personal stories as well as those of the people whose lives they are committed to help make better.

Just like the businesses I work with, the United Way has discovered that leveraging diversity is the only way their non-profit organization can thrive.

Consider their Statement of Principle: “The United Way’s U.S. National Board of Trustees recognizes diversity and inclusion as core values that are critical success factors in achieving United Way’s mission. This is a business imperative that is required for United Way to grow, thrive and advance the common good in our communities” (emphasis mine).

In 2007, the United Way created a Diversity and Inclusion Council to help address business and system issues, including enhancing relationships with donors, increasing community engagement, and developing professional talent. Chaired by two local United Way CEOs, the council is made up of United Way leaders from nine targeted segments: African American; Asian/Pacific Islander; Gay, Lesbian, Bisexual, and Transgender; Latino/Hispanic; Native American; Persons with Disabilities; White Engagement; Women; and Young (under 40). Each segment has its own Business Resource Group who gives feedback to the Inclusion Council as a whole. Together these groups raise more than $135 million a year for the United Way system.

Profit/Not-for-Profit; Principles/Bottom Lines; Individual Good/Common Good; Diversity/Unity — the old binaries collapse in the era of the Inclusion Paradox.

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