Nonprofits a powerful force in job creation

November 8, 2013

Nonprofits a powerful force in job creation

According to CNN, the nonprofit sector is no lightweight in U.S. job creation. When it comes to employment and nonprofits, the subject is often huddled around high turnover among executives and other key employees. However, CNN reports in 2012 the nonprofit sector is the third largest labor force, coming in just behind retail and manufacturing, and generates almost $1.5 trillion in spending per year. Given the number of nonprofits in the country, it's not surprising their employment numbers are so high.

While organizations often rely on volunteers for fundraising and occasionally to help provide services, they still have businesses to operate. Groups need individuals with skills in finance, management, accounting and marketing like any successful business does. Thus, nonprofits not only offer a high number of jobs, but also a wide variety of jobs.

According to the John Hopkins University report "Holding the Fort:Nonprofit Employment during a Decade of Turmoil," nonprofits have shown impressive resilience in the areas of job growth and creation when compared with the for-profit sector. The report found that during the heart of The Great Recession, nonprofit sector jobs increased by 1.9 percent per year while traditional businesses averaged a loss of 3.7 percent.

While the economy overall has improved since the recession, massive cuts in government funding could mean a tougher road ahead for nonprofits. It will be just as important for organizations to maintain skilled workers among many departments, but they will need to do so with leaner budgets.

Relying on outside experts to handle complex issues
To ensure that nonprofits can focus on the most important aspects of their mission, organizations should consider enlisting the help of outside organizations. Groups that provide services and expertise in areas such as unemployment insurance, financial services and risk management can save organizations resources and money.

Groups such as First Nonprofit Companies can provide various services to nonprofits so that the organization itself can focus on the elements of its business that require unique talents. Even highly skilled employees will burn out fast if they are spread too thin throughout the organization.

Companies can also save money in the long run when turning to experts. Consulting services that help lower unemployment insurance costs or manage other complex issues faced by nonprofits can be a financial benefit. An employee not trained in the areas may be able to complete the day-to-day requirements of the job, but make costly mistakes or miss cost saving opportunities in the long run. 

Content presented by First Nonprofit Companies, the leading provider of state unemployment insurance solutions for 501(c)(3) nonprofit employers.


Ready to chat?
Get in touch today to request a no-obligation savings evaluation.


First Nonprofit has saved us so much money over the state’s program. We had one little glitch with the state recently and we contacted FNP immediately. FNP staff called us back immediately and moved to remedy the problem.

WI Council of Religious & Independent Schools (WCRIS), Madison, WI

First Nonprofit has been a great partner. They have helped us saved hundreds of thousands of dollars! They have awesome resources for our nonprofit organization. Thanks for the partnership.

Community Care Inc., Milwaukee, WI

Life is certainly busy these days but having business partners like First Nonprofit has made some of the process hassle free. We have worked with this team for years. When we changed payroll systems, they outlined every step. I think this team is terrific and I know they get the job done! Thank you, Cruz, to all the team at FNP.

Gulfside Healthcare Services, New Port Richey, FL

FNP has helped our agency to save thousands of dollars every year on our unemployment coverage. The service is phenomenal, and we are thankful to their team as our partner. My experience working with Marshall on the advocacy around UE for nonprofits was also a highlight as someone who teaches advocacy and lobbying for nonprofits. Really, your whole team is top shelf, so thank YOU!

Advancing Academics, Turtle Creek, PA

Chicago Children’s Theatre has greatly benefited from our partnership with First Nonprofit, and I have always enjoyed working with the staff on our filings and any complicated questions. I would not hesitate to recommend First Nonprofit to fellow nonprofits. We’re very happy customers.

Chicago Children’s Theatre, Chicago, IL

FNP is a great resource for Daniel Kids. To have a TPA that we can count on to take point on not only managing our unemployment claims, but to support and guide any protest hearing, is invaluable. All the professional support staff we have worked with have been excellent, very knowledgeable and responsive. We are grateful for the help and support, thank you.

Daniel Kids, Jacksonville, FL

When I first began in my position at my organization, I hadn’t had experience working with a company like FNP. The staff was so patient and helpful in helping to explain the benefits of First Nonprofit. Anytime I reach out with a question I receive a quick, clear, and thorough response. I’m so thankful that we decided to partner with FNP. Their excellence in customer service, coupled with their variety of packages frees us up to truly serve our staff and community with a peace of mind knowing that our organization is protected against unanticipated unemployment insurance expenses.

Homes of Hope, Chicago, IL

First Nonprofit gets an A+ in my book. You are so easy to work with & very knowledgeable! Whether it is my quarterly correspondence with Kim or my random interactions with Dawn about a bond … I am so pleased that I get to work with such a helpful company. Thank you!

Women's Choice Network, Pittsburgh, PA