The Governor of Illinois yesterday signed a bill that will require that nonprofits (grantmakers) that annually distribute more than $1 million must now "report their board make-up — race, gender and sexual orientation — on their web sites". The purpose according to a Politico article is to get big philanthropy to have their boards reflect their constituents which in turn will presumable ensure a more responsive or appropriate distribution of funds. This law comes on the heels of the state requiring its corporations to complete similar reporting.
Now, some might argue that this is government overreach in its purest form although clearly the law does not say big philanthropy "has" to diversify its boards only that it has to report on the diversity status of its boards. This is of course a big difference in expectations. That said though, the wealthy does not HAVE to distribute its wealth but it does so to solve the problems it sees as getting in the way of however it believes society should function. Philanthropy's theory of change is for sure closely tied to its leadership (board) who see life, with some exception, from their own ivory towers. Hence the need for diversity in leadership: perhaps but recognizing that these leaders are not representing the constituents they serve - hence the luxury of philanthropy.
I would pose however that while this effort to change behavior is notable, the long-range prospective consequences do make me wonder what is possible. In a capitalist system where those who have the wealth make the rules it is not certain as to what it really takes to change the way philanthropy distributes it wealth or whether this "soft" approach or nudge can really make a change and this all presumes that it is the boards that REALLY pave the way for what their philanthropy does.
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FIRST IN PLAYBOOK: Illinois is poised to become the first state to spotlight the diversity of nonprofit organization boards, according to proponents of the idea.
Gov. JB Pritzker supports Senate Bill 2930, just passed by the General Assembly, which calls for Illinois-based nonprofit organizations that distribute $1 million or more to charitable groups to report their board make-up — race, gender and sexual orientation — on their web sites each year.
The goal is to nudge foundations and big nonprofits to diversify their boards, said state Sen. Adriane Johnson who carried the bill along with state Rep. Edgar Gonzalez Jr.
“We are taking vital steps to support diversity and inclusion in the nonprofit sector,” Johnson told Playbook. “We are creating these spaces where people can show up as their true, unassimilated and authentic selves.”
It’s not just about board members being their authentic selves. It’s about constituents also feeling like the nonprofit board represents their community, according to Equality Illinois, which advocates for LGBTQ rights.
The take-away: “It’s important that foundations are reflective of the communities they serve. With this bill, grantees, community groups and community leaders can see how diverse the boards of directors of foundations are and proactively work with foundations to ensure that their leadership reflects the communities,” Equality Illinois CEO Brian Johnson told Playbook.
The measure echoes a recently enacted law that requires Illinois-based companies to list their corporate-board makeup based on sexual orientation, race or ethnicity. The data is similarly compiled, and a report is issued