A Function of Board Diversity? Does Diversity Equip Nonprofit Performance

Abstract

Nonprofit boards receive plenty of advice about what they “should” do, but many fail to heed the guidance—perhaps due to limited resources, a failure to prioritize, or not realizing the critical linkage between board performance and organizational performance. This research examines diversity in board membership by linking board diversity to organizational performance. We utilize data from a large, representative national survey of nonprofit executives in the United States to examine the diversity of nonprofit boards in terms of visible diversity and inclusive behaviors and practices. Using regression analysis, we find diverse boards have more inclusive governance practices, and board diversity practices are positively related to nonprofit performance. These findings offer fresh evidence about why diversity matters relative to how boards function and their impact on fulfilling their organizational mission. This research contributes to how we think of diversity and inclusion in the nonprofit sector and why it matters beyond representational value.