Why DEI is more important than ever

A new report by EY UK highlights the importance of DEI in improving productivity and innovation in the workplace. The focus of the report is about building inclusive cultures that will better equip companies to implement DEI practices. And an inclusive culture benefits everyone. Their report found that employees who feel a sense of belonging can increase job performance by up to 56%.

 

 

What is DEI?

 

DEI stands for diversity, equity, and inclusion. It can also be referred to as EDI.

 

Diversity recognises that we are all different. We may have different backgrounds, identities, cultures, and experiences, but we should all have equal access to resources, opportunities, and decision-making. For charities, it’s so important to ensure there is diversity in your staff, board, and volunteers.

 

Equity is about giving people what they need – whether it’s resources or support – to make opportunities fair. It is different from equality, which is about treating everyone the same and that no one is disadvantaged because of their background or what makes them different from others. Equity means treating certain groups differently so that they have equality in terms of achieving opportunities.

 

Inclusion ensures that every individual is valued for their experiences, skills, and perspectives. It’s about creating an environment or culture where people of different backgrounds, experiences, and identities feel welcomed and respected and are fully able to participate. It is about creatin an environment where they can just be themselves.

 

 

How DEI is evolving in 2025

 

With artificial intelligence (AI) and technology advancing at a rapid pace, here are some of the ways that DEI initiatives are evolving:

• Applying data-driven tools, such as disaggregated recruitment metrics and pay gap analysis
• Embedding inclusive design into service delivery
• Adopting intersectional approaches that consider race, disability, gender identity, and socio-economic background
• Strengthening accountability through audits and feedback mechanisms

While DEI is evolving, it’s also facing backlash. In February 2025, President Trump signed an executive order to direct the US federal government to terminate practices and policies that protect and promote diversity and inclusion.

 

The Order also only recognises two sexes: male and female. It’s a significant step back from the progress made in DEI initiatives and policy for gender inclusion.

 

This change in the US towards DEI may seem far removed from the UK, but charities should pay close attention to the developments in the US – especially ones with international or US links. 

 

 

Why is DEI essential for charities?

 

Legal obligations in the UK

 

Like all organisations in the UK, charities must comply with the Equality Act 2010, which protects people against discrimination on nine “protected characteristics”. These are: age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation.

 

Even if a charity is small, if it is an employer, provides services, or is a membership body, it is subject to legal duties under equality law.

 

Legal obligations aside, regulators such as the Charity Commission expect good governance to incorporate equality and diversity. The Charity Commission itself has set out a Diversity and Inclusion strategy for 2024–27, pledging to “go beyond the Equality Act provisions” and embed inclusion more broadly.

 

Failing to act or comply with the Equality Act 2010 can lead to reputational damage, legal claims, and possibly a regulatory inquiry.

 

 

Diverse charities build trust and credibility 

 

Charities exist to serve communities, including the most marginalised. To best serve all their beneficiaries, charities must reflect and respect the diversity of those communities. This means having staff, volunteers, trustees, and leadership that have different backgrounds, experiences, and skills.

 

 

The benefits of DEI to organisations 

 

Not only is DEI the right thing to do for your employees, volunteers, and those you serve, but it also has huge benefits for your charity. Here are five benefits that DEI brings to organisations.

• Innovation and problem-solving: diverse teams bring multiple perspectives, which help design better and more responsive services
• Engagement and retention: inclusive cultures help reduce staff turnover and make staff feel valued. This improves morale and increases productivity
• Access to funding and partnerships: many funders now require evidence of DEI strategy or reporting. For example, Wellcome has DEI clauses in their grant conditions
• Reputation and trust: a demonstrable commitment to DEI strengthens public trust, especially in a climate of DEI backlash in the US and other countries
• Risk mitigation: DEI policies and oversight help guard against discrimination claims and exclusionary practice

 

How can charity leaders spotlight DEI?

 

An organisation’s culture is set from the top down. For a charity to be fully inclusive, they need to embed and spotlight DEI. Here are some practical steps that charities can take.

 

 

Leadership buy-in and modelling

 

Board members, trustees, and senior management must visibly practice and endorse DEI. That means not just “signing off” on DEI policies, but actively participating in training, listening to underrepresented voices, and being accountable.

 

 

Embed DEI into core systems

 

Here are some ways you can embed DEI into your core systems:

• Recruitment: ensure that job adverts are accessible in terms of language and format (for example), introduce diverse hiring panels and provide reasonable adjustments
• Pay, progression, and reward: check for disparities in pay or opportunity
• Service design and communications: co-produce services with diverse communities, ensure access (e.g. language, cultural competence, disability access), and review external communications for bias
• Training and culture: ongoing inclusive leadership, unconscious bias, allyship, safe spaces for feedback
• Accountability: regular reporting to board/staff, feedback mechanisms, inclusion surveys, and consequences for noncompliance

 

Foster participation and voice

 

Ensure marginalised groups have meaningful influence – on designing services, evaluation, and measuring impact, decision-making committees etc.

 

Rotate leadership roles or consider a co-leadership model. Implement inclusive meeting practices, for example, giving people time to reflect, using multiple formats for people to input and have a say etc.

 

 

Where can charities find relevant DEI resources?

 

There are several DEI resources available for charities. 

 

The NCVO provides guidance, such as a charity’s legal duties in terms of the Equality Act, training on DEI for trustees, and more.

 

The Charity Commission provides several resources, as well as expectations around equality and diversity in the sector.

 

CharityComms, Charity Digital, and Media Trust have several articles and resources on accessibility and inclusivity. 

 

The Equality and Human Rights Commission (EHRC) protects and promotes equality and human rights under law. They are responsible for enforcing the Equality Act 2010. They have lots of guidance on their website – not specifically for charities but for business, individuals and the public sector.

 

Wellcome’s equity, diversity, & inclusion policy is a great example of a DEI policy. It also forms part of their grant conditions.

 

EY UK’s DEI interventions that deliver report has practical steps organisations can take to successfully build an inclusive culture and implement DEI practices.

 

Amid growing global political upheaval over DEI, UK charities have both a responsibility and an opportunity to reaffirm the value of diversity, equity, and inclusion. For charities, while there is a legal duty to prevent discrimination, real progress lies in building inclusion into culture, strategy, governance, and service design.