Equity in the charity sector isn’t just a buzzword—it’s a necessity. For too long, structural inequality has shaped how funding is distributed, whose voices are heard, and which organisations are allowed to thrive. While “diversity and inclusion” are often championed in public statements, the reality on the ground paints a very different picture.
In this blog, we explore what equity truly means in practice, why BAME-led non-profits are disproportionately affected by the lack of it, and what needs to change to create lasting transformation in the charity sector.
Diversity vs Equity: Why the Distinction Matters
It’s important to begin by clarifying the difference between diversity, inclusion, and equity in the charity sector:
- Diversity is about representation—who is in the room.
- Inclusion is about whether those individuals feel they belong.
- Equity is about fixing the system so everyone has fair access, opportunity, and outcomes.
Too often, charities stop at ticking diversity boxes—hiring one person of colour or inviting a marginalised speaker to a panel—without addressing the structural inequalities that prevent meaningful power-sharing or access to resources.
Equity isn’t performative—it’s systemic.
Where the Charity Sector Falls Short
Despite recent progress, the charity sector in the UK still struggles with structural bias. Research shows:
- Only 5–7% of total charity funding reaches BAME-led organisations.
- BAME leaders are underrepresented at senior and board levels across major charities.
- Traditional funders often use criteria that unintentionally exclude grassroots, culturally specific projects.
These systemic barriers create a cycle where marginalised organisations remain underfunded, undervalued, and ultimately unsustainable.
The Impact of Inequity on BAME-Led Organisations
At Beyond Growth, we’ve worked closely with dozens of BAME-led non-profits. Through surveys and one-to-one support, we consistently hear the same challenges:
- Lack of visibility within the sector
- Barriers to funding due to unfamiliar application formats or limited networks
- Cultural disconnects with mainstream funders
- Exclusion from strategic partnerships and advocacy platforms
In our 2024 service user survey, over 90% of respondents valued culturally specific services, yet the organisations delivering them remain on the fringe of the funding landscape.
How to Build Real Equity in the Charity Sector
Creating equity in the charity sector requires far more than statements of support or temporary funding pots. It demands a fundamental shift in how power, funding, and decision-making are shared. Here are five key strategies:
1. Fund for Equity, Not Equality
Treating everyone the same in an unequal system reinforces injustice. Funders must adopt equity-based frameworks—allocating more support to historically excluded organisations to level the playing field.
2. Trust-Based Funding Models
Move away from overly complex grant applications and reporting. Trust-based funding allows organisations to use their expertise to deliver impact without jumping through hoops.
3. Representation in Leadership and Boards
Charities must reflect the communities they serve, not just in staff but in decision-making roles. Board diversity is key to ensuring policies and priorities are inclusive and relevant.
4. Accessible Capacity Building
Support services like governance training, financial literacy, and digital transformation must be tailored and culturally competent. At Beyond Growth, we provide training and one-to-one support designed for the realities BAME non-profits face.
5. Collaboration Over Competition
Encourage partnerships between large institutions and smaller BAME-led organisations—ones that don’t exploit but elevate. Equity means ensuring smaller voices aren’t just heard, but centred.
Why This Work Is Urgent
Equity isn’t a future goal—it’s a present necessity. Without it, we risk losing the very organisations that are closest to the needs of our most marginalised communities. The post-pandemic landscape has already seen many small charities close; the majority of them were BAME-led.
But it doesn’t have to be this way.
By creating fair funding systems, sharing decision-making power, and valuing cultural relevance, we can transform the sector from the inside out.
Conclusion
Equity in the charity sector isn’t about being politically correct—it’s about being structurally just. It means redesigning systems so that all organisations, particularly those historically left out, can not only survive but lead.
If you’re a funder, policymaker, or ally, now is the time to move beyond words and into action. And if you’re part of a BAME-led non-profit ready to grow, reach out to Beyond Growth—we’re building equity together.
External Resource: Charity So White – Campaign for Racial Equity