The public rightly expects charities to model their values in the way they create impact. So, what should charities do when it comes to racial diversity and inclusion?

NCVO’s recently published UK Civil Society Almanac 2020 shows that employees from BAME backgrounds make up only 9% of the voluntary sector workforce compared with 12% in the public and private sectors, and 13% in the UK population. 

In other words, when it comes to racial diversity the charity sector is less representative of society than the private sector, and this is a trend which hasn’t changed over the past 7 years. Why is this and why does it matter?

Why racial diversity matters

ACEVO’s 2018 report Racial Diversity in the Charity Sector makes the case for increased diversity in the charity workforce from six perspectives:

1. Diverse organisations prevent groupthink - Groupthink is more likely to occur in groups where people share a similar background and experiences. Greater diversity should create stronger, more resilient charities that can operate more effectively. 
2. Diverse organisations generate more income - Research found that companies in the top quartile of ethnic diversity were 35% more likely to financially outperform others in their industry. It would therefore appear that more diverse teams within a charity will be better able to raise funds from the full diversity of the British public.
3. Diverse organisations are more innovative  - Diversity of people brings diversity of skills and experience, which in turn can deliver richer creativity, better problem solving and greater flexibility.
4. Diverse organisations attract more talent - The proportion of BAME employees is increasing and expected to rise to 21% by 2051. Charities failing to think about how to recruit from this talent pool may miss out on the best candidates for the role.
5. The moral case  - Everyone should be able to access the same opportunities and fulfil their potential. At the moment, data shows us that this is not the case in the charity sector. Improving diversity and equality of opportunity within charities is compatible with the moral and ethical framework under which charities are formed and operate. 
6. The legal case  - Under the Equality Act 2010 employers must avoid direct and indirect discrimination. Indirect discrimination is when a decision is made which has (or would have) a worse impact on a group that share a particular protected characteristic than on people who do not have that characteristic. 

Two years after this ACEVO report was published, the statistics show that there is little sign of improvement. The conversation, however, has moved on to better acknowledge the discrimination experienced by some BAME employees in the sector, making the moral case for increased diversity more pertinent. 

Voice4Change and ACEVO recently published their report Home Truths: Undoing racism and delivering real diversity in the charity sector after consulting with 500 BAME employees who shared their experiences of racism in the sector and what they thought needed to change in order to create true culture change. This report aims to reframe the ‘diversity’ debate, demonstrating that racism is a significant and unresolved issue in the charity sector just as it is in the rest of society.

Echoing the concerns raised in the report are campaign groups such as #CharitySoWhite. This group champions its vision of a charity sector that is taking the lead on tackling and rooting out racism so that the sector, leaders and decision-makers reflect the communities served by the sector. 

#CharitySoWhite calls on leadership teams across the charity sector to prioritise candid and honest conversations about racism, publicly acknowledge racism within the sector and within their organisations and commit to tackling institutional racism.

Resources to help improve racial diversity and equity

For charities striving to increase racial diversity and to improve the experience of their BAME employees and volunteers, here are some resources to support you on your journey:

• ACEVO’s report Racial Diversity in the Charity Sector provides useful suggestions for recruiting a more diverse workforce and adopting leadership principles that will move the sector forward.
• NCVO provides helpful guidance to help charities improve their approach to Equity, Diversity and Inclusion.
• Voice4Change and ACEVO’s Home Truths report makes recommendations to improve inclusion within organisational policy, leadership, funding and the sector collectively.

The Charity Governance Code’s recent consultation also highlighted a strong appetite for change and the need to improve its guidance on diversity and inclusion to reflect current good practice.