Why must underrepresented groups participate in philanthropic governance?

30 de junho de 2025

Article originally published on Exame in 10/11/2024

*By Viviane Elias Moreira and Andrea Hanai

Viviane Elias Moreira: “It is urgent, therefore, that philanthropy approaches diversity with greater commitment and conviction and with less hesitation, thus creating increasingly respectful, fair and welcoming spaces.” (Leandro Fonseca/Exame).

It is estimated that we make approximately 35,000 decisions every day, ranging from simple to complex. Although decision-making is always present in our daily lives, it is not always trivial. Our choices can be decisive for our own lives or affect the future of nations, organizations or the lives of thousands, even millions, of other people.

When we delve into institutions, we encounter this crucial yet often overlooked subject: Governance. The concept encompasses systems, principles, rules, structures and processes that lead people to make more informed, assertive, sustainable, balanced, inclusive and transparent decisions.

Today, we will specifically discuss governance in socio-environmental investment. Reflecting on how choices are made regarding the allocation of resources to specific projects or organizations. The provocation proposed in this text aims to invite everyone to step out of their comfort zone, that routine or privilege that sometimes enforces itself on us. 

When it comes to philanthropy, the sector must recognize the importance of diversity and inclusion in its processes, objectives and purposes, viewing it not only as a moral responsibility but as a strategic resource for true social transformation. Many philanthropic initiatives already consider diversity as a criterion for allocating resources, and many civil society organizations have adopted affirmative policies in their hiring processes.

However, the inclusion of people from different backgrounds, races, ethnicities, genders, sexual orientations, abilities and beliefs in social and workspaces goes beyond representation; it is about creating environments where these diverse voices are actively heard, encouraged and valued. For this to happen, the participation of these groups in governance decision-making processes is fundamental, bringing with them the richness of strategic decisions that consider a plurality of perspectives, conferring legitimacy to actions.

When underrepresented groups gain space and are strategically heard in decisions surrounding philanthropy, there is a redistribution of opportunities and resources which positively impact and align with the modern definition of philanthropy, going far beyond financial donations to social causes, involving a broader and more structured set of actions aimed at systemic and sustainable positive impact.

When philanthropy embraces diversity as an essential value for its realization, the potential for impact is even greater, echoing in other ways, whether by promoting more social justice, stimulating economic development or driving innovation and competitiveness. In Brazil, where social inequalities are deeply rooted in issues of race, gender and geographic location, fostering these practices has exponential transformative power.

Achieving equality in diversity topics is still challenging in operational spaces. The scenario becomes even more critical in deliberative governance bodies. At the current pace, it will take about 20 years to achieve parity between men and women in the composition of deliberative councils, for example, according to the GIFE Census 2022/2023, which surveyed 137 civil society organizations, mostly linked to family and corporate philanthropy. In terms of race, despite advances, the percentage of white people on councils is still 92%. Black individuals make up 7%, Asians 1% and there is only one indigenous person mapped in this space. 

It is clear that changes in the governance of already established organizations may require time, which could justify the slow pace at which underrepresented groups are being included in deliberative instances. However, it is concerning that new civil society organizations and new decision-making processes in established organizations are being created without considering diversity and inclusion.

A recent study by IDIS – Institute for the Development of Social Investment, which provides data on 74 endowment funds in Brazil, reveals that we have the presence of black or indigenous people in only 43% of General Assemblies, 36% of Deliberative, Curator or Administrative Councils, and only 11% of Investment Committees. A numerically very low presence, which in none of the instances exceeds 8% of members.

A slightly better scenario is observed when considering gender. Women are present in most Councils and Committees, but still do not occupy half of the seats in these bodies. Finally, another interesting aspect is the fact that 78% of the endowment funds (58 out of the 74 in the survey) were created after 2010.

Philanthropy is one of the most efficient ways to drive systemic changes that are not only capable of reducing social inequality but also of building a more just, equitable and inclusive society, creating a country with truly equal opportunities for all.

If we want to preserve the legitimacy and relevance of our philanthropy and our organized civil society, we need to take diversity and inclusion more seriously, not only in the actions and projects carried out but also in the decision-making process around our strategy and performance.

Therefore, it is urgent that philanthropy approaches diversity with greater commitment and conviction and less hesitation, thus creating increasingly respectful, fair,and welcoming spaces.

Viviane Elias Moreira is a fiscal counselor at IDIS – Institute for the Development of Social Investment and Andrea Hanai is a project manager at IDIS.