Streamlining demographic data collection

Demographic data is critical to helping our sector better understand and meet the needs of diverse communities. Foundations increasingly recognize the importance of recipient organizations’ demographics in informing their grantmaking process to ensure their grants are equitably distributed and impactful. At Candid, we’re working to streamline the process of collecting and sharing demographic data, fostering transparency and accountability in the nonprofit sector, and reducing the burden on nonprofits.  

Lowering barriers to data collaboration 

By becoming a Demographics via Candid partner, funders, philanthropy-serving organizations, and nonprofit associations can contribute to a more comprehensive data set that can be used collectively by the sector. But some funders have questions and concerns about joining.  

Here are some of the barriers that might prevent some funders from joining the initiative—and how we’re working to address them:  

Integrating with custom systems 

Many foundations already have their own systems for data collection and management. Integrating a new system can seem daunting and time-consuming. So, Candid has partnered with various grants management systems to ensure a seamless integration process and enable foundations to continue using their preferred systems while sharing data with the sector. 

We’ve also made it easy to gather, access, and utilize the demographic data we collect. This data is available through Candid nonprofit profiles, a free Demographics API, a public Tableau dashboard, or a downloadable spreadsheet. Learn more about these four free ways to access Candid’s demographic data. 

Securing internal buy-in 

Getting internal buy-in can be a significant hurdle in philanthropy, which can be slow to adopt new methods. To overcome this, my colleagues and I have communicated to potential partners the benefits to the sector of comprehensive demographic data collection in one place. We’ve also pointed out the benefits to nonprofits of providing demographic data on their Candid profiles. For example, research shows that nonprofits that earned a Candid Seal of Transparency by providing data received an average of 53% more in contributions the following year than those that did not. Success stories and case studies from other organizations have helped us to illustrate the positive impact of gathering, analyzing, and sharing demographic data. 

Understanding the collective benefits 

When funders ask for demographic information in grant applications, most nonprofits comply. But some funders don’t realize that applicants are providing this same information for numerous funders in different formats multiple times. So the collective benefits of participating in a data collaboration are overlooked. Funders need to understand that their—and their grantees’—contributions to the demographic data pool not only benefit their own analyses but also strengthens the entire sector.  

How? It reduces the burden on nonprofits by enabling them to upload their demographic data in one place, one time, where multiple grantmakers can access it. One foundation discovered that 80% of its grantees were already sharing demographic data via their Candid profiles, so by participating in this initiative they would immediately be reducing the burden on their grantees. Comprehensive data collection also advances transparency and accountability and supports better informed decision making—and, ultimately, more effective philanthropy. 

Highlighting the potential of data collaboration 

In addition to lowering barriers to participation, we’ve been showcasing what this collective effort enables us to do as a sector. 

Elevating sector-wide research on demographics 

Thanks to our partners’ support, Candid has conducted extensive research that sheds light on critical issues in the sector. For example, The state of diversity in the U.S. nonprofit sector report, released in May, provides valuable insights into the representation and inclusion of diverse groups in the nonprofit workforce: While 47% of all nonprofit staff in the data set identify as white, 70% of CEOs/executive directors and 66% of nonprofit board members identify as white, highlighting a significant area for improvement. Analyses by experts like Kelly Brown further emphasize the importance of quality demographic data in driving equity and inclusiveness in philanthropy. 

Identifying gaps and targeting resources 

The collective data gathered through Demographics via Candid enables funders to identify gaps and areas of need in their funding portfolios, develop targeted strategies to reach underrepresented communities, enhance transparency and accountability in their grantmaking processes, foster a more equitable distribution of resources across the nonprofit sector, and reduce the burden on nonprofit partners. 

We’ve been addressing funders’ initial concerns about partnering with Demographics via Candid, and we hope our partners can significantly enhance their impact by leveraging the available tools and data. Their collaborative efforts are already yielding valuable insights and driving positive change in the sector. By joining this initiative, foundations can contribute to a more informed, inclusive, and effective sector. Funders, nonprofit associations, and philanthropy-serving organizations can join us in standardizing demographic data and reducing reporting burdens on nonprofits.