The DEI Dilemma:

How Nonprofits Can Stay Inclusive Without the Backlash

Dear Friends and Colleagues:

Over the past few years, diversity, equity, and inclusion (DEI) initiatives have been front and center in corporate and nonprofit spaces. But in today’s climate, these efforts are facing increased scrutiny. Companies are quietly pivoting away from highly visible DEI programs, wary of the backlash that has followed political and cultural shifts. The nonprofit sector, even more sensitive to public perception, faces similar challenges.

Nonprofit boards are committed to doing the right thing while being mindful of their public image. With DEI becoming a third-rail issue, there is a risk of alienating donors who feel exhausted by what they see as rigid quotas and checklists. The challenge is balancing a commitment to inclusiveness with the realities of an evolving social and political landscape.

At a recent board development session I attended, several nonprofit leaders voiced their concerns about DEI and asked for advice on how to navigate these tensions. My response was simple: Organizations can maintain a culture of fairness and inclusion without necessarily labeling their efforts as DEI. In fact, doing so may be the best path forward.

Most nonprofit leaders agree that their boards should reflect the communities they serve. Strong, diverse relationships drive fundraising and long-term success. An organization with a broad mix of perspectives and connections will always be better positioned for growth. But when these efforts are framed as part of a DEI initiative—especially one that appears tied to quotas or forced representation—it can turn off donors and stakeholders who are wary of politicized language.

The key is shifting the approach. Instead of emphasizing labels like DEI, BIPOC, Latinx, or cisgender—terms that are increasingly divisive—nonprofits can focus on the natural benefits of diversity. Speak about relationship-building, broadening community representation, and ensuring different voices have a seat at the table—not because of a mandate, but because it leads to better decision-making, fundraising success, and stronger community impact.

This isn’t about abandoning the principles of inclusivity. It’s about understanding how to communicate those values in a way that resonates with today’s donors, board members, and corporate partners. The goal remains the same: to build strong, representative, and effective organizations. The strategy, however, must evolve.

It’s time to get with the times. Nonprofits that focus on organic diversity—without the political baggage of DEI terminology—will be better positioned to attract support, foster community trust, and ultimately achieve their missions.

What do you think? How is your organization navigating this shift? I’d love to hear your thoughts—email me your comments and insights!

Sincerely,