Since 2020, we’ve seen a higher sense of urgency to handle racial inequities within the social sector—particularly round entry to energy and assets. As the biggest supply of nonprofit demographic knowledge, at Candid we’re typically requested whether or not this push has resulted in precise change. Are extra individuals of shade serving in nonprofit management roles? Have we closed the racial management hole?
The reply is…sure and no. For this text, we use our archival demographic data to look ati whether or not there was a rise in racial range amongst nonprofit leaders between 2020 and 2023. Listed below are our high three takeaways.
1. There have been no main shifts within the general racial illustration of nonprofit CEOs on the sector degree
annually of knowledge in mixture, the racial distributions of nonprofit CEOsii remained constant from yr to yr. Nonprofit CEOs are predominantly white: Greater than 70% of organizations are led by a white CEO. On common, solely 13% of nonprofit CEOs determine as Black/African American, whereas simply 6% are Hispanic/Latinx and 4% are Asian American/Pacific Islander. Native American is the least represented race/ethnicity, accounting for lower than 1% of CEOs annually.
Variety of organizations | ||||
Chief Race | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|
Black/African American | 1,057 | 3,114 | 3,954 | 4,499 |
Hispanic/Latinx | 488 | 1,339 | 1,682 | 2,008 |
Multi-racial/Multi-ethnic | 269 | 804 | 1,039 | 1,155 |
Native American | 72 | 210 | 250 | 294 |
Asian American/Pacific Islander | 311 | 999 | 1,240 | 1,410 |
White | 5,376 | 18,723 | 22,026 | 24,138 |
Figures characterize numbers of organizations for which the CEO identifies as a given race/ethnicity. For annually, we excluded nonprofits that skipped the query or declined to share their chief’s race/ethnicity in addition to these whose chief’s race/ethnicity didn’t fall into one of many six classes.
2. Roughly 2% of organizations indicated a change between BIPOC, white, and different leaders annually
Our first evaluation means that the sector general has not turn out to be extra racially various. Nonetheless, as a result of CEO tenure tends to be prolonged, it’s attainable that there are some shifts occurring that merely should not but noticeable in mixture on the sector degree. To discover this chance, we additionally examined how the chief’s race modified inside every group between 2020 and 2023.
For simplicity, we categorized the CEO races and ethnicities between BIPOCiii (Black, Indigenous, or individuals of shade), white, and differentiv and analyzed adjustments between these three classes inside every group. We restricted the evaluation to nonprofits that shared details about their chief’s race not less than twice between 2020 and 2023 and excluded those who skipped the query or declined to state their chief’s race/ethnicity. Our last knowledge set included 28,669 organizations, of which 17,688 shared their chief’s race/ethnicity data in two of the 4 years, 8,710 did so in three years, and a pair of,271 did so in all 4 years.
Total, we discovered that for annually, about 2% of organizations on this knowledge set reported shifts between the classes of BIPOC, white, and different. (Precise CEO turnover could also be greater, as this evaluation doesn’t seize, for instance, a white CEO changing a white CEO).
Change in group leaders’ race | Change 2020-2021 | Change 2021-2022 | Change 2022-2023 | |||
---|---|---|---|---|---|---|
CEO race change (BIPOC/white/others) |
quantity | share | quantity | share | quantity | share |
Sure | 89 | 1.81% | 334 | 2.49% | 345 | 2.14% |
No | 4,822 | 98.19% | 13,062 | 97.51% | 15,778 | 97.86% |
3. When there was a change between BIPOC, white, and different, it was typically a shift from a white CEO to a BIPOC CEO
Among the many roughly 2% of organizations that noticed a change of their chief’s race, the bulk reported a shift from a white chief to a BIPOC chief. Whereas between 2020 and 2021, 44% modified from a white CEO to a BIPOC CEO, in subsequent years, greater than 60% of organizations that noticed a change indicated a shift from a white CEO to a BIPOC CEO.
We excluded the change in race between different and BIPOC or white. Figures characterize adjustments in nonprofit management from the earlier yr to the yr offered.
Briefly, there is no such thing as a easy reply to the query: “Did nonprofit management turn out to be extra racially various after 2020?” On the one hand, our evaluation means that the general racial distribution of nonprofit CEOs has remained fixed over the previous 4 years, with greater than 70% of CEOs within the sector figuring out as white. However, after we slim our focus to the two% of organizations with new CEOs of a unique race, we see that in 2022 and 2023, there have been twice as many organizations that employed a BIPOC CEO upon the departure of a white CEO, as those who employed a white CEO upon the departure of a BIPOC CEO. This evaluation leaves us cautiously optimistic that we’re beginning to see adjustments in relation to racial range in nonprofit management. Solely time—and extra knowledge—will inform whether or not these small shifts will result in systemic change.
iWe restricted the evaluation to 2020-2023 as a result of in 2019, solely 3,273 nonprofits shared their demographic data with Candid.
iiAbout 19% of organizations in our dataset have each a frontrunner and a co-leader. For this evaluation, we excluded knowledge on co-leaders.
iiiBIPOC contains individuals who publicly determine as Asian/Asian American/Native Hawaiian/Pacific Islander, Black/African American, Hispanic/Latino/Latina/Latinx, Multi-racial/Multi-ethnic (two or extra races or ethnicities), and Native American/American Indian/Alaska Native/Indigenous.
ivSome respondents wrote of their chief race and we manually reviewed and assigned a class for these write-ins. There are instances the place we couldn’t decide a selected race the place the write-ins may match and stored them as ‘different.’
Since 2020, we’ve seen a higher sense of urgency to handle racial inequities within the social sector—particularly round entry to energy and assets. As the biggest supply of nonprofit demographic knowledge, at Candid we’re typically requested whether or not this push has resulted in precise change. Are extra individuals of shade serving in nonprofit management roles? Have we closed the racial management hole?
The reply is…sure and no. For this text, we use our archival demographic data to look ati whether or not there was a rise in racial range amongst nonprofit leaders between 2020 and 2023. Listed below are our high three takeaways.
1. There have been no main shifts within the general racial illustration of nonprofit CEOs on the sector degree
annually of knowledge in mixture, the racial distributions of nonprofit CEOsii remained constant from yr to yr. Nonprofit CEOs are predominantly white: Greater than 70% of organizations are led by a white CEO. On common, solely 13% of nonprofit CEOs determine as Black/African American, whereas simply 6% are Hispanic/Latinx and 4% are Asian American/Pacific Islander. Native American is the least represented race/ethnicity, accounting for lower than 1% of CEOs annually.
Variety of organizations | ||||
Chief Race | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|
Black/African American | 1,057 | 3,114 | 3,954 | 4,499 |
Hispanic/Latinx | 488 | 1,339 | 1,682 | 2,008 |
Multi-racial/Multi-ethnic | 269 | 804 | 1,039 | 1,155 |
Native American | 72 | 210 | 250 | 294 |
Asian American/Pacific Islander | 311 | 999 | 1,240 | 1,410 |
White | 5,376 | 18,723 | 22,026 | 24,138 |
Figures characterize numbers of organizations for which the CEO identifies as a given race/ethnicity. For annually, we excluded nonprofits that skipped the query or declined to share their chief’s race/ethnicity in addition to these whose chief’s race/ethnicity didn’t fall into one of many six classes.
2. Roughly 2% of organizations indicated a change between BIPOC, white, and different leaders annually
Our first evaluation means that the sector general has not turn out to be extra racially various. Nonetheless, as a result of CEO tenure tends to be prolonged, it’s attainable that there are some shifts occurring that merely should not but noticeable in mixture on the sector degree. To discover this chance, we additionally examined how the chief’s race modified inside every group between 2020 and 2023.
For simplicity, we categorized the CEO races and ethnicities between BIPOCiii (Black, Indigenous, or individuals of shade), white, and differentiv and analyzed adjustments between these three classes inside every group. We restricted the evaluation to nonprofits that shared details about their chief’s race not less than twice between 2020 and 2023 and excluded those who skipped the query or declined to state their chief’s race/ethnicity. Our last knowledge set included 28,669 organizations, of which 17,688 shared their chief’s race/ethnicity data in two of the 4 years, 8,710 did so in three years, and a pair of,271 did so in all 4 years.
Total, we discovered that for annually, about 2% of organizations on this knowledge set reported shifts between the classes of BIPOC, white, and different. (Precise CEO turnover could also be greater, as this evaluation doesn’t seize, for instance, a white CEO changing a white CEO).
Change in group leaders’ race | Change 2020-2021 | Change 2021-2022 | Change 2022-2023 | |||
---|---|---|---|---|---|---|
CEO race change (BIPOC/white/others) |
quantity | share | quantity | share | quantity | share |
Sure | 89 | 1.81% | 334 | 2.49% | 345 | 2.14% |
No | 4,822 | 98.19% | 13,062 | 97.51% | 15,778 | 97.86% |
3. When there was a change between BIPOC, white, and different, it was typically a shift from a white CEO to a BIPOC CEO
Among the many roughly 2% of organizations that noticed a change of their chief’s race, the bulk reported a shift from a white chief to a BIPOC chief. Whereas between 2020 and 2021, 44% modified from a white CEO to a BIPOC CEO, in subsequent years, greater than 60% of organizations that noticed a change indicated a shift from a white CEO to a BIPOC CEO.
We excluded the change in race between different and BIPOC or white. Figures characterize adjustments in nonprofit management from the earlier yr to the yr offered.
Briefly, there is no such thing as a easy reply to the query: “Did nonprofit management turn out to be extra racially various after 2020?” On the one hand, our evaluation means that the general racial distribution of nonprofit CEOs has remained fixed over the previous 4 years, with greater than 70% of CEOs within the sector figuring out as white. However, after we slim our focus to the two% of organizations with new CEOs of a unique race, we see that in 2022 and 2023, there have been twice as many organizations that employed a BIPOC CEO upon the departure of a white CEO, as those who employed a white CEO upon the departure of a BIPOC CEO. This evaluation leaves us cautiously optimistic that we’re beginning to see adjustments in relation to racial range in nonprofit management. Solely time—and extra knowledge—will inform whether or not these small shifts will result in systemic change.
iWe restricted the evaluation to 2020-2023 as a result of in 2019, solely 3,273 nonprofits shared their demographic data with Candid.
iiAbout 19% of organizations in our dataset have each a frontrunner and a co-leader. For this evaluation, we excluded knowledge on co-leaders.
iiiBIPOC contains individuals who publicly determine as Asian/Asian American/Native Hawaiian/Pacific Islander, Black/African American, Hispanic/Latino/Latina/Latinx, Multi-racial/Multi-ethnic (two or extra races or ethnicities), and Native American/American Indian/Alaska Native/Indigenous.
ivSome respondents wrote of their chief race and we manually reviewed and assigned a class for these write-ins. There are instances the place we couldn’t decide a selected race the place the write-ins may match and stored them as ‘different.’