Limited leadership: an examination of Houston nonprofit board diversity and whether selection processes and executive director perceptions of governance models affect composition

Abstract

Nonprofit governing board diversity recently gained attention from scholars, and the changing demographics of the United States' population create urgency around understanding how to diversify nonprofit boards. This study examined nonprofit board diversity in the largest majority-minority city in the United States -- Houston, Texas -- which was also declared the most diverse city in the country in the 2010 Census. GuideStar was used to identify nonprofit organizations in the Houston metropolitan area with annual revenue of $250,000+ and were contactable. 712 executive directors were surveyed electronically; there was a 26% response rate yielding responses from 185 nonprofit organizations. The survey was designed in three sections to study board composition, board processes and whether or not the executive director's perception of the governance model would influence the diversity ratio on an organization's board, and the analyses correspond with those three sections. The study found Houston's nonprofit boards are 9% more diverse than the national average and that Caucasians continue to be overrepresented in governing roles. Other composition findings were that the diversity ratio for board members under 35 years old is beginning to mirror the Houston population and that there was statistical significance between board members being 65 years+ and a lower diversity ratio on the board; however, there was no evidence that suggested nonprofit boards are more diverse in diverse communities. The study identified a gender gap in executive committee service, with a mode of one female serving on these committees despite that fact women make up 46% of all nonprofit board members. No relationship was found between diversity ratios and board procedures or the executive director's perception of the organization's governance model. Other findings were that Houston boards use executive committees at twice the rate of the national average, and that there is direct contradiction between the perceived value of diversity and what characteristics are considered important when recruiting board members. This study ruled out simple solutions for increasing board diversity through board procedures, and it identified areas for future research regarding governance models, the alignment of recruiting characteristics with board diversity and gender equality in leadership.