New Zealand Rugby has lost $280,000 (£145,000) of funding for failing to meet a quota of at least 40% of their board consisting of female officials.
It was the only one of 65 major sporting bodies in the country to fail to hit funding body Sport NZ's target.
"While this funding is valuable to NZ Rugby, it will not impact our current work streams," said NZ Rugby board chair Stewart Mitchell.
New Zealand hosts the women's version of the Rugby World Cup next month.
New Zealand's nine-strong board includes three women, including former Black Ferns captain Farah Palmer.
Mitchell emphasised that the board had "50% overall diversity".
"Rugby benefits when there is a range of demographics, skills, backgrounds and personal characteristics on boards. Moving forward it is critical that we maintain a long-term focus to ensure sustainable and meaningful change," he added.
New Zealand go into the Rugby World Cup as defending champions after their victory over England in 2017.
However their preparations have been marked by coaching changes, with former All Blacks coaches Wayne Smith and Sir Graham Henry coming in, and a critical review of the culture overseen by the previous regime.
The hosts have slipped behind tournament-favourites England on the field, suffering two heavy defeats to the Red Roses last autumn.
Portia Woodman and Sarah Hirini, who both started New Zealand's win over England in the last World Cup final, have been included in the Black Ferns' 32-strong squad despite their recent focus on Sevens.
Half-back Kendra Cocksedge, the most-capped women's player in New Zealand history, is also selected before her imminent retirement.
Chelsea Semple and Tyla Nathan-Wong missed out however.
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