Exclusive: Australia lacks clear understanding of cultural diversity in philanthropy

New research shows it’s time for the philanthropic sector to meaningfully embrace cultural diversity, both within its ranks and in its giving.  

It’s time for the Australian philanthropic sector to embrace cultural diversity, a new report states, but further research is needed to ensure meaningful, transformative change occurs.

Called From Colour Blind to Race Conscious: Actions and Priorities to Increase Cultural Diversity in Australian Philanthropy, the report aims to fill the research gap in Australia on diversity in philanthropy, and has been released alongside a call for funders and grant recipients to take part in new research into the cultural diversity of the funding landscape.

This is something that Australia doesn’t have, the report notes; most previous research in this space has been focused on the North American context.

Evidence gaps in the philanthropic landscape mean that although there is increasing recognition of the importance of cultural diversity, anecdotal evidence suggests that culturally and linguistically diverse communities are poorly represented in Australian philanthropy.

Situating the Australian experience amongst global anti-racism movements like Black Lives Matter the report, prepared by the Centre for Social Impact (CSI) and Jumbunna Institute for Indigenous Education and Research, states that now is the time for philanthropic organisations to embrace better cultural representation.

“In Australia, First Nations and other cultural minority advocates have long been campaigning for racial justice and systemic change. Despite this history, it was international action that led to a similar internal reflection occurring in Australian philanthropy. It became clear there is little to no cultural diversity across the board-member cohorts of Australia’s largest philanthropic organisations,” the report states.

Adequate representation can “radically” transform practices, it continues, and embracing cultural diversity is valuable for a number of reasons, including being able to co-create culturally appropriate solutions to social problems, better reflecting the make-up of Australia’s multicultural population, and contributing to the anti-racism movement in philanthropy.

Deliberately increasing cultural representation beyond just the boardroom table can have numerous long-term benefits, including building a broader perspective on social issues in diverse communities, and improved responsiveness to corporate responsibility, governance, product development, and board effectiveness.

We don’t know what we don’t know

According to the research, “we don’t really know” how cultural diversity is impacting Australian philanthropy, but anecdotal evidence suggests “representation of individuals from culturally and linguistically diverse backgrounds is poorly reflected in the established Australian philanthropic sector”.

Across the funding, recipient and volunteer landscapes, evidence suggests that there are biases against funding for culturally diverse causes, with Western ideas shaping views on these areas, according to the report.

It also acknowledges a “‘gulf’ in understanding philanthropy from Indigenous perspectives”. This exists in spite of “the inherent need to support Indigenous causes, particularly given large landholdings by Indigenous communities, under resourced Indigenous groups and significant social determinant gaps between Indigenous and non-Indigenous populations”, it adds.

See more: Relationships, trust, and community: the journey of a First Nations-led funder

Lead researcher of the report, Dr Megan Weier, said funders and for-purpose organisations need to prioritise organisational or structural changes that will support the inclusion of more diverse voices.

“In the midst of mounting social movements for racial justice and equality, there has to be a concerted effort by philanthropic and for-purpose organisations to proactively improve their cultural representation and consider any power imbalances between decision makers and the people they are working to assist,” she said.

Doing, vs being and living

Cultural representation allows people to identify and advocate for their communities in the way that is best and safest for them, the report notes.

“Without appropriate representation, there is a risk that Anglo-Western funders will ask organisations representing culturally diverse communities to deliver programs or outcomes that are set against a Westernised or Anglo definition of success or thriving. Without proper oversight, these outcomes or ways of engaging may risk being inappropriate or damaging for these communities,” the report reads.

It adds that “philanthropic foundations must move from “doing” equity to “being and living” equity… [using]… resources and power to reduce disparities between cultural groups and communities and to align with philanthropy’s overall mission of being a catalyst for positive social change”.

See more: Flipping the script on Indigenous philanthropy

Evidence from overseas, cited in the report, shows the benefits of cultural representation on boards, but the report adds that this is not enough; “inclusive organisational practices and policies, as well as support for new board members in skill development, need to be implemented before diverse boards begin achieving positive outcomes”.

Planning is essential for successful organisational change, and organisations should be careful not to marginalise or exploit diverse staff members.

The report makes a number of recommendations on practical strategies to implement immediately to improve cultural diversity, including providing adequate staffing and budgets to drive change, implementing that change at all levels of the organisation, and seeking community input to meaningfully co-design the new policies and programs.

“Addressing the issue and gaps of cultural diversity in the philanthropic sector needs to go beyond providing a business case or having diversity within the board. Practices need to be inclusive, non-tokenistic and created in genuine collaboration with culturally diverse leaders and community,” the report concludes, adding that lessons can be learned from international funders.

Further research needed

Following the release of CSI and Jumbunna’s report, the Macquarie Group Foundation is joining forces with Philanthropy Australia and investment fund Perpetual to support further research to better understand how the cultural makeup of philanthropic boards and for-purpose organisations impacts funding decisions and program outcomes in Australia. 

The ‘From Colour Blind to Race Conscious’ research project is currently seeking participants from both funders and grant recipients via survey or interview.

“This research will invite opportunities to be more deeply aligned with program missions. By understanding the current state of cultural diversity in Australian philanthropy, we’ll be able to identify opportunities for change and to measure progress against a baseline. We encourage other philanthropic bodies and for-purpose organisations to be part of the study for better outcomes across the sector,” said Lauren O’Shaughnessy, director of impact at the Macquarie Group Foundation.