From intent to impact: embedding DEI in the UK funding strategies

Voluntary sector organisations are integral to community life, engaging with diverse populations and addressing a variety of needs. Despite their central role, these organisations face criticism for insufficient diversity and inadequate representation of marginalised communities, including racially minoritised groups, LGBTQIA+ individuals, and disabled persons (Kunreuther and Thomas-Breitfeld, 2017; Lingayah et al, 2020; Heckler, 2023). The COVID-19 pandemic further highlighted disparities, significantly impacting minority communities socially, economically, and health-wise (King et al, 2021). This period also saw a resurgence in global anti-racism activism, amplified by the Black Lives Matter movement, which intensified discussions on racism and the broader spectrum of diversity, equity, and inclusion (DEI). A significant concern among UK funders is the inadequate allocation of resources to organisations led by and serving historically underrepresented and disadvantaged communities. To address this gap, the DEI Data Standard was developed by an independent working group of UK funders. Launched in October 2021 by The Social Investment Consultancy (TSIC) and 360Giving, the Standard was designed in collaboration with sector specialists possessing direct lived experience. Now, over three years later, the Standard has seen adoption by over a dozen funders, with additional funders on track to integrate this framework. The Standard aims to facilitate an intersectional analysis of UK funding practices from a DEI standpoint. Our study of the DEI standard shows that applications made by organisations who are not Led For any population group experiencing structural inequity had a higher grant success rate (37%) than those applications for Beneficiary (Led For) population groups experiencing at least one form of structural inequity. Moreover, organisations Led By population groups experiencing intersectional structural inequity apply for fewer and lower-value grants. Moreover, while funders are increasingly focused on understanding their applicants and grantees, they seem to place greater emphasis on monitoring these communities rather than critically examining the power dynamics within their grant-making processes. In other words, funders pay more attention to the demographic breakdown of applicants rather than concentrating on how their practices may influence that demographic. Although it is encouraging that some funders have embraced the DEI Data Standard and are trying to collect and analyse DEI data. The data alone will not lead to change. Indeed, funders must not fail to look beyond the data to understand how their practices may contribute to the current state of the funding landscape. While embracing the DEI Data Standard is an important step in this journey, it is only the first step. A concerted effort is needed to move funders towards a position of reflexivity to understand in their own organisations their unconscious bias and examine what their DEI data is depicting, particularly where disparities are evident, e.g., lower approval rates for Black-led organisations. In our presentation, we’ll discuss how DEI Data Standard should be considered as ‘a process for change’ that will create a more equitable and inclusive funding system.