Certified Nonprofit Professional Practice Exam

A local nonprofit organization identified lack of diversity as a barrier to its effectiveness. What would be an appropriate next step for this board?

1. Conduct a community survey

2. Review employee and volunteer composition for diversity

3. Increase funding for diversity initiatives

4. Hire an external consultant

The correct answer is: Review employee and volunteer composition for diversity

Identifying a lack of diversity as a barrier to organizational effectiveness is a crucial first step for a nonprofit organization. The logical next step involves examining the current state of diversity within the organization, which is why reviewing employee and volunteer composition is appropriate. This process entails assessing the demographics of the current workforce and volunteer base to understand existing gaps and areas for improvement. By conducting this review, the board can gather concrete data about the diversity—or lack thereof—within their own ranks. This will enable them to make informed decisions about the necessary steps to address diversity issues. Understanding the current landscape allows leaders to identify specific objectives for diversity and to frame future initiatives tailored to recruit, retain, and engage diverse talent. Looking at the other options, conducting a community survey could provide insight into community needs or perceptions but would not directly address the internal composition of the organization. Increasing funding for diversity initiatives without first understanding the specific composition of the board, staff, and volunteers could lead to ineffective use of resources. Hiring an external consultant might bring in expertise, but it is essential to first understand the internal landscape before incurring such expenses to formulate a strategy based on firsthand data.