This article delves into the challenges of institutional data collection processes in higher education, particularly regarding diversity reporting. The study this article is based on focuses on enhancing inclusivity by introducing a nonbinary sex category into the institutional data of a distinguished Chilean public university. In the Chilean context, national- and university-level efforts have been made to acknowledge that gender identities extend beyond the conventional female/male dichotomy. By incorporating the nonbinary sex category into institutional data, this article illuminates the significance of capturing information about gender identities that are diverse. The examination centers on a public university, and illustrates a progressive initiative to foster inclusivity and to acknowledge gender diversity within higher education. The introduction of the nonbinary sex category is commendable in addressing gender diversity within university communities. Nonbinary signifies a departure from the traditional female/male binary, and acknowledges the multifaceted nature of gender identity. While the nonbinary category might not encompass the entirety of sexual diversity, it nonetheless signifies positive progress. The shared view that there are more than two gender identities has implications for data collection and reporting, and creates the need for adaptations in information systems to accommodate this reality that now includes a third category, the nonbinary sex. Our discussion emphasizes the importance of integrating a gender perspective into the management and administration of university databases.