DEIB: A Lifeline for Income Generation in the Third Sector
Lately, it feels like Diversity, Equity, Inclusion, and Belonging is truly dying. Over the past weekend, major corporations like Meta, McDonald's, and Amazon have scaled back their DEIB commitments, treating them as optional rather than essential. In the third sector, where every penny counts, there's a growing need to prioritise income generation, often resulting in the reprioritisation of DEIB in the scramble for funding. Many charities are experiencing income declines due to reduced donor contributions, shrinking government grants, and rising operational costs. But here's the truth: side lining DEIB isn’t just a moral misstep- it’s a financial one.
Unlike corporations, charities don’t just sell products; they sell trust, impact, and belonging. When people donate, they’re investing in values, in representation, in the belief that their contributions will create a more just and equitable world. This is why DEIB isn’t a 'nice to have'- it’s an income-generating powerhouse. Yet, time and time again, we see organisations making the mistake of treating DEIB as an add-on rather than a core business strategy.
The third sector is at a crossroads. Do we follow the lead of large corporations and scale back on inclusion, or do we harness DEIB as a driver of sustainability and financial resilience? Let’s explore why embedding DEIB into fundraising and engagement strategies is not just the right thing to do—it’s the smart thing to do.
1. Expanding Donor and Funder Appeal
Philanthropic organisations, corporate sponsors, and individual donors are increasingly prioritising DEIB. Many major funders now require charities to demonstrate commitment to equity and inclusion before awarding grants. This is particularly important in a time when social justice movements have heightened expectations around accountability and representation.
When charities can show that DEIB is at the heart of their mission—not just a box-ticking exercise—they create stronger alignment with funders’ values. Funders don’t just want to see impact; they want to see that the organisation is internally reflecting the change it seeks to make.
Consider this: an organisation focused on social justice but lacking diverse leadership may struggle to secure funding from equity-driven donors. On the other hand, a charity that actively champions DEIB embeds it in governance and demonstrates measurable outcomes is far more likely to attract investments that align with its mission.
2. Building Stronger Community Trust and Engagement
Trust is the lifeblood of the third sector. Communities want to feel seen and heard, not just served. The days of a ‘saviour’ mentality in charity work are over. Now, more than ever, communities expect to be involved in shaping the services that impact them. When charities co-create solutions with the people they support—rather than for them—they strengthen relationships and boost long-term donor loyalty.
Take, for example, grassroots organisations led by people with lived experience of the issues they address. These organisations often outperform larger charities in building trust because their leadership reflects the communities they serve. By prioritising DEIB, organisations can ensure that their staff, volunteers, and decision-makers mirror the people they aim to uplift, making fundraising efforts more authentic and effective.
People are more likely to give when they see organisations truly living out their values, actively including diverse voices, and addressing systemic inequities. When an organisation’s DEIB work is visible and tangible, it fosters deeper connections, long-term advocacy, and sustained financial support.
3. Creating a More Engaged, Productive Workforce
A diverse, inclusive workplace isn’t just good for morale—it directly affects income. Studies consistently show that diverse teams are more innovative, more engaged, and better equipped to solve complex challenges. In the third sector, where creativity and agility are essential to survival, an engaged workforce can mean the difference between a thriving charity and one that struggles to stay afloat.
When employees feel a sense of belonging, they bring their best selves to work. This translates into:
More effective fundraising campaigns
Stronger donor relationships
Greater efficiency in program delivery
Lower staff turnover, reducing hiring costs
All of these factors contribute to long-term financial sustainability. Yet, many charities still struggle with retention because employees from diverse backgrounds often experience microaggressions, lack of progression opportunities, and exclusion from decision-making. Addressing these issues through intentional DEIB work strengthens the workforce, which in turn strengthens the organisation’s bottom line.
4. Making Marketing and Storytelling More Powerful
Fundraising is storytelling, and the most compelling stories are diverse, authentic, and intersectional. Charities that fail to reflect diverse voices in their campaigns risk alienating potential donors and missing opportunities to connect with new audiences.
Representation matters—people want to see themselves in the causes they support. A charity that only showcases a narrow, homogenous narrative in its fundraising appeals limits its reach and impact. Inclusive marketing is not just ethical; it’s profitable. It attracts donors who see their values reflected in the organisation’s messaging and ensures that the organisation is speaking to a broad spectrum of potential supporters.
5. Strengthening Corporate Partnerships
Socially responsible businesses want to partner with organisations that reflect their values. Many corporations have their own DEIB commitments and are looking for nonprofit partners who align with these values. A charity that leads with DEIB is in a stronger position to secure funding, sponsorships, and collaborations with companies that want to make meaningful, equity-driven change.
Reframing DEIB as an Investment, Not a Cost
For DEIB to remain a priority, third-sector leaders must reframe it as a strategic advantage, not an expense. Here’s how to integrate DEIB into income-generation strategies:
Embed DEIB in Funding Applications: Clearly articulate how DEIB enhances impact and community engagement. Funders want to support organisations that create lasting, systemic change.
Diversify Fundraising Strategies: Engage donors from historically overlooked communities and explore new, inclusive giving models like crowdfunding and peer-to-peer fundraising.
Invest in Inclusive Leadership: Equip leaders with the skills to champion DEIB across all aspects of fundraising, strategy, and decision-making.
Prioritise Transparency: Share DEIB progress with donors and stakeholders. Trust leads to loyalty, and loyalty leads to sustained giving.
Engage Diverse Volunteers and Supporters: A diverse volunteer base strengthens outreach, advocacy, and fundraising potential
A Call to Action for the Third Sector
DEIB is not a distraction from income generation—it’s a key driver of it. In times of financial uncertainty, the charities that will thrive are those that understand this simple truth: when people feel seen, valued, and included, they give more, they engage more, and they champion your cause more.
As a DEIB and Culture leader, I’ve seen first-hand how organisations that embrace inclusion don’t just do better socially—they perform better financially. I’ve also seen the consequences when DEIB is treated as an afterthought: disengaged teams, disconnected donors, and lost funding opportunities.
This is the moment for the third sector to lead, not lag, in embedding DEIB into every aspect of fundraising and sustainability. Because at the end of the day, DEIB isn’t just the right thing to do—it’s the strategic thing to do.
So I ask you: What will your organisation do differently today to ensure DEIB is at the heart of your income-generation strategy?
Join the Conversation
I hope Mabinty Esho's DEIB Digest inspires you to embrace diversity and become an advocate for equity, inclusion, and belonging. If you’ve enjoyed reading this article and want to hear more of my thoughts, reflections, and insights, please like, comment, and subscribe!
Thank you for being a part of this journey towards a more inclusive and equitable world. Together, we can create a world where everyone feels seen, heard, and valued.
Until next time, stay curious, stay kind, and keep shining!
