The growing research regarding ethics of the lack of female CEOs in recent years mainly focuses on for-profit entities, leaving the nonprofit sector understudied. Although nonprofits are perceived as more gender-balanced workplaces, a stark gender disparity in leadership remains. Leveraging token theory and social role theory, this study postulates that female CEOs can act as catalysts for enhanced transparency in charitable foundations, a critical segment of the nonprofit sector. Analyzing 2,890 Chinese foundations from 2011 to 2015, we observe a clear pattern: foundations led by females consistently outshine their male-led counterparts in transparency. This ethical commitment to transparency is even more pronounced under intensified external scrutiny and pressure. Intriguingly, our findings spotlight financial reporting quality and regulatory adherence as pivotal channels through which female CEOs champion transparency. Moreover, female CEOs, especially those steadfastly committed to transparency, amplify donation revenue for their foundations. Consequently, the evidence accentuates the ethical and practical merits of recruiting and nurturing female leaders in nonprofits, paving the path towards a more ethically balanced and gender-equitable leadership landscape.