By Nina Cohen and Erika McDaniel, Glenmede, an Exponent Philanthropy Platinum Sustaining Partner

Across the philanthropic industry, the words diversity, equity and inclusion (DEI) have bubbled to the surface. As the United States grows more diverse, nonprofit entities are adapting by becoming more intentional about incorporating DEI initiatives into all facets of their organization.

Through large-scale initiatives like D5, a five-year effort to advance DEI in philanthropy, several influential nonprofits have come together to take practical steps in moving DEI programming forward. For example, some organizations are launching DEI task forces while others are implementing smaller-scaled initiatives through areas like grantmaking and funding or board and staff leadership.

For charitable organizations in particular, it is important to understand and adapt to the changing demographic landscape. By more clearly defining the term DEI, organizations can more easily determine how to best address these concerns within the framework of their mission and vision. For example:

• Diversity refers to historically under-represented individuals and groups that can be engaged through philanthropy.
• Equity focuses on the creation of philanthropic opportunities and access to philanthropic resources for historically under-represented individuals and groups.
• Inclusion involves active, deliberate and continuing engagement with historically under-represented individuals and groups.

A variety of charitable organizations, from small private foundations to large public charities, are pursuing DEI initiatives. For funders and grantmaking organizations, common ways to pursue DEI initiatives are through funding and leadership.

• Funding. DEI initiatives influence how foundations and other grantmaking institutions distribute their dollars. Many organizations have broadened grantmaking programs to include a larger pool of potential grantees and impact investments such as mission- and program-related investments. For example, the mission of a family foundation may be to support the education of minority students in the inner city. Whereas they may have primarily granted money to programs that supported students in STEM (science, technology, engineering and math) subjects, census data shows that immigrant populations are increasingly moving to inner city areas. As such, the data would support the foundation’s expansion of funding to include organizations that support reading initiatives or English as Second Language programming.

• Leadership. DEI initiatives can also affect the types of candidates considered for board and staff positions. Research has shown that diversity within organizations drives innovation, increases productivity and improves future recruitment efforts. Beyond racial or ethnic diversity, there is diversity of age, gender and physical ability. Many organizations have implemented “next gen boards” to engage a younger, more diverse group of individuals in their philanthropic mission and develop future leaders.

Nonprofit organizations that receive grants and other funding are embracing DEI initiatives through a variety of ways including leadership, as described above, programming, and fundraising.

• Programming. In response to changing demographic needs, nonprofits are developing and implementing specialized programming. As the aging population increases, for example, nonprofits focusing on human services may shift more attention and dollars to serving and supporting the elderly. Staying current on shifting demographic trends is imperative and may drive the way programming is added, continued or terminated, impacting the budget, staff and even volunteers.

• Fundraising. Nonprofits are always challenged to better segment and target donors, cultivate deeper donor relationships, make more salient requests for donor support and engage donors in a way more meaningful for the donor. Yet organizations also need to understand that various cultures view philanthropy differently. Within some cultures or ethnic groups, it is important that the right “asker” makes the request and offers an opportunity to donate time as well as money. For other communities, “friendraising” is an effective tool, and “passion and cause” can at times outweigh the lack of a personal connection to the organization.

The evolving demographic face of America is shifting every aspect of daily life, from television programming to a multigenerational workforce. These transformations are driving technological innovation, political change and, now, changing the philanthropic industry. By embracing DEI initiatives, both foundations and nonprofits will be poised to get in step with the new landscape and further their missions.

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Nina Cohen is Director of Endowment and Foundation Advisory, at Glenmede. Independent and privately held, Glenmede was founded in 1956 to serve in perpetuity as the investment manager and trustee of the Pew family’s charitable interests—The Pew Charitable Trusts. Today Glenmede provides highly customized investment services to endowments, foundations, institutional entities, and high-net-worth individuals and families. Glenmede also provides customized administration, grants management, and advisory services to foundations and other nonprofit organizations. Follow Glenmede on Twitter @Glenmede.

Erika McDaniel is a business development officer at Glenmede, an independent trust company that manages $30 billion in assets for nonprofit organizations, institutions, individuals, and families. Erika also serves on the board of trustees for the Forman S. Acton Educational Foundation, a private non-operating foundation based in Salem, NJ.