Time for Action: Boosting Diversity Within Canada’s Charities and Non-Profits
Canada’s charities and non-profits want federal recognition for their sector’s role in the economy. This was a prominent theme throughout the year-plus of testimony and evidence received during my time as Vice Chair of the Special Senate Committee on the Charitable Sector.
A quick look at the data shows this is a fitting request. Canada’s charities and non-profits represent over eight percent of our national GDP and employ approximately two million Canadians when public institutions like universities and hospitals are included. Their work in communities across this country and around the world generates more than just social good, but also jobs and economic growth. This sector ought to be seen as such, much like any other sector in this country.
An acknowledgement of the charitable and non-profit sector’s economic importance comes with a responsibility. There is a growing expectation in this country that sectors of significant economic standing ought to reflect the diversity of this country. This sector’s government and for-profit counterparts have made progress on this front, not merely out of principle, but because of the benefits it generates as well. And while many public-benefit organizations have embraced diversity and inclusion in all facets of their work, many more have not.
“Generally, the non-profit and charitable sector is considered to be more inclusive than the private sector with higher levels of participation by women, racialized minorities, indigenous people, persons with disabilities and other under-represented groups. However, in spite of the rhetoric, research on diversity suggests that the leadership is not diverse nor is there a strong commitment to inclusion at the organizational level.”
– Wendy Cukier, Director of the Diversity Institute
Brief to the Committee, December 10 2018
In 2013, the Ontario Nonprofit Network and the Mowat Centre conducted a survey of 810 executive directors and senior leaders across Ontario’s sector, which asked how active their organizations were in identifying talented candidates from employment equity groups like women, visible minorities, Indigenous peoples, immigrants, refugees and persons with disabilities. They found that seventy-five percent of respondents were not actively tapping into diverse pools of talent.
Six years later, the Senate’s Charities Committee’s e-consultation survey of nearly 700 charities and non-profits across Canada paints a similar picture. Fifty-six percent responded that they do not gather data on employee diversity, and fifty-one percent of respondents did not gather data on the diversity of their boards of directors.
Through its questionnaire, the Special Senate Committee on the Charitable Sector asked organizations how they monitor employee diversity. Learn more about the findings: https://t.co/jsQTBvl4ZG #SenCA #CSSB #cdnpoli pic.twitter.com/eN9z6Y7pqz
— Senate of Canada (@SenateCA) May 27, 2019
There is a common misperception that diversity policies prioritize identity of a candidate over their merit. In fact, professionals with the same education and experience levels are often not considered for management and board positions. Diversity policies ensure that job and board vacancies are filled by the most qualified candidates by ensuring the talent pool being tapped is wide reaching and inclusive. As we heard from Wendy Cukier of the Diversity Institute, “the issue is not the pool but the intentionality of policies and programs.”
The business case for diversity is clear. Studies have found that employers in various industries that set policies that tap into diverse populations experience greater financial returns and innovation. A new study found that non-profit boards that meet their full potential on recruiting a diversity of directors can govern far better on multiple fronts, including fiduciary performance, stakeholder engagement, and operational responsiveness.
Simply put, Canada’s charitable and non-profit sector is behind the times when it comes to diversity. This prevents Canada’s sector from identifying top talent, limits the ability of boards and senior staff to govern and innovate, and ultimately could jeopardize the capacity of an organization to resonate with a diversifying Canadian population. Charities and non-profits must take the initiative.
It all starts with knowing your numbers. As someone who has spent my entire career working in Canada’s charitable and non-profit sector, I am all too aware of the reality that it is nearly impossible to improve or solve something you are not measuring. As Cathy Winter told our Committee, “what gets measured gets done.” When charities and non-profits are not aware of their composition, it puts the sector as a whole at a disadvantage.
“In new approaches to board recruitment practices, while representation is important, it must be authentic and should not be rooted in tokenism. Communities must see themselves represented in positions of power and influence. If they don’t, why would they support those institutions? And once there, they must feel valued, supported and respected; otherwise, they won’t stay.”
– Cathy Winter, Program Manager at OnBoard Canada
Committee Testimony, October 1 2018
If the charitable and non-profit sector wants to be seen and heard by the federal government as a sector, it has to do more to attract and retain diverse talent. Diversity is increasingly becoming an expectation for all sectors of the Canadian economy. Charities and non-profits are no exception.
The next step is to move with intention. Organizations should look inward and audit how they identify candidates for job openings and vacant seats on their boards to ensure the various communities that make up Canadian society are reflected. Charity and non-profit leaders need to bring their teams around the table to forge new diversity policies or update existing ones. Best practices need to be sought out and shared, recruitment goals need to be set, and conversations must be had within Canada’s charities’ and non-profits’ about how to make their operations more inclusive.
Learn more about the value diversity poses for your charity or non-profit:
Click here to learn about onBoard Canada’s efforts to help organizations pursue better diversity outcomes.
Click here to learn more about the “Leading the Conversation” program from TRIEC and ONN