November 8, 2013
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.
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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.
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