Women, Leadership, and Equity

This month's blog celebrates Women's History Month by honoring women who lead nonprofit organizations. Structural biases still create inequities within the sector that negatively impact women, especially women of color, and we will explore these inequities throughout the blog, but we’ll begin by celebrating the work of a leader in Colorado’s nonprofit sector, Debra Locke.

• Debra Locke, Executive Director and Co-Founder of Youth Empowerment Agency, mentor, private business owner, mother, and super-hero. At Youth Empowerment Agency, Debra works alongside a board of three BIPOC women and a staff team of two BIPOC women. Debra has 15 years of experience working with children and 5 years running a Childcare home business. She has the passion and drive that fuel the organization and contribute to its growth.

Given the fact that women outshine men in the vast majority of leadership skills, it is encouraging that 67% of Colorado’s nonprofit organizations are led by women, with women’s representation on boards almost tripling over the last decade. (Colorado Nonprofit Salaries & Benefits Survey), and, according to the Colorado Women’s Chamber of Commerce,

A deeper dive into these statistics reveals structural issues that manifest in gender and racial inequities that negatively impact women leaders, and specifically, BIPOC women leaders. Nationally, white women lead 45% of nonprofits, while BIPOC women lead 18% of nonprofits, according to a 2024 Candid report. Why? Before exploring that question, let’s be true to our intent - to honor women leaders in the sector:

Diversity in the nonprofit sector is not reflected in Leadership Positions: 

Nationally, 47% of staff in the nonprofit sector identify as white. That means that 53% identify as being non-white, and yet 70% of CEOs/Executive Directors, as well as 66% of board members, identify as white. (According to a 2024 Candid report). The report also finds that these inequities are more pronounced in large organizations, given that the majority of BIPOC women leaders run nonprofit organizations with annual revenues of $50,000 or less. Here are some of the foundational issues that cause these inequities.

Power Is About Budget Authority

The systemic biases that create these inequities in leadership roles also mean that women of color are excluded from financial decision-making for their organizations and this manifests in the exclusion of their voices from shaping the long-term development of the organization. It is the case that whoever controls the budget controls the strategy. To mitigate this, it is imperative that Boards should ask:

• Does our leadership structure distribute financial authority equitably?

• Are we compensating executive leaders in alignment with market benchmarks?

• Do leaders have discretionary funding to innovate?

Equity Requires Resource Equity

National data has consistently shown that organizations led by women of color receive a disproportionately small share of philanthropic funding relative to their impact and community reach. This is why funders must examine:

• Are we making larger, multi-year, unrestricted grants to organizations led by women of color?

• Are our reporting requirements more burdensome for smaller, community-rooted organizations?

• Do our grant guidelines unintentionally privilege historically white-led institutions?

Trust-based philanthropy cannot exclude women of color from trust.

Invest in Leadership Pipelines- Not Just Crisis Appointments

Too often, women of color are elevated during moments of crisis: when an organization needs repair, credibility with the community, or reputational rebuilding.

Sustainable equity looks different:

• Intentional succession planning

• Funded executive coaching

• Board pathways that cultivate future chairs and committee leaders

• Compensation transparency

Women’s History Month is a moment for reflection - and recalibration. Are we funding organizations led by women of color at comparable levels? Are we investing in leadership pipelines - not just crisis hires?

These are governance questions. They are funding questions. They are powerful questions.

Women’s History Month calls nonprofit leaders, board members, and funders to do more than elevate narratives. It calls us to:

• Share power

• Reallocate resources

• Redesign governance

• Build systems where leadership longevity is possible

Representation without power is not equity. That is how we change the sector.