Philanthropic Impact & Insight: Diversity yields effective business

Nonprofits and corporations share a desire to honor diversity. To be seen as fair. But in a world with varying definitions of what a diverse work place looks like, and what that means for both consumers and business owners, many questions arise on how to keep up with the changing tides of inclusion.

At the Wisconsin LGBT Chamber of Commerce, we hear from people again and again that they want to do business with organizations that share their values. And, they’re willing to put their money where their mouths are. A study done by Witeck found two-thirds (66 percent) of all LGBT adults reported they would be very or somewhat likely to remain loyal to a brand they believed to be very friendly and supportive to the LGBT community – even when less friendly companies offer lower prices.

In the nonprofit sector, a 2011 study produced by Commongood Careers and Level Playing Field Institute revealed diversity is also a struggle. According to the Stanford Social Innovation Review, the study shows both staff and boards lack diversity; and it suggests nonprofits don’t know where to find people of color, attract young people or gay people.

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Despite these struggles building diversity on nonprofit boards can lead to revenue increases. A case study, which will be presented at a Nonprofit Center of Milwaukee educational session in May, reveals a 400 percent increase in revenue through building board diversity. It shows that honoring diversity yields tangible results.

We’ve seen businesses and organizations that implement LGBT-supportive workplace policies experience positive results with employee recruitment and retention. It’s important to have policies in place, from the top down.  It’s something philanthropists and investors are looking for.

One initiative the Chamber has put forth to help solve this problem is our Job Board, a place where community members are able to search for positions with organizations that support equality and fairness. The Job Board gets over 400 unique monthly views from people who want an employer who will allow them to be themselves from the moment they walk in the door.

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As fundraisers know, equally important is creativity in getting your message out to the public. In practice this means marketing that makes a conscious effort to honor diversity. Tailoring the message to tap into markets that share their values, especially audiences an organization has previously been unable to reach. We know it is important for a campaign to show LGBT couples and individuals. People want to see themselves in ads and promotional materials.

Diversity has a myriad of meanings. It exits beyond culture, orientation and gender—it includes ideas, perspectives and beliefs. The LGBT community is intersectional and crosses other diversity barriers. We are black, white and brown, men and women, and more.

Luckily members of both the nonprofit and corporate sectors understand that having diversity in the workplace and in marketing makes good business sense. The result is an increasingly diverse and accepting business culture that works for everyone.

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Jason Rae is the executive director of the Wisconsin LGBT Chamber of Commerce. The Chamber works with both corporate and nonprofit sectors to create a fully inclusive state by promoting economic growth and opportunities among LGBT-owned and allied businesses, professionals and corporations. Column editor Peter Zehren is vice president of communications for the AFP SEWI.

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