April 8, 2014
Nonprofits are showing that they have real staying power as growth in the sector has outpaced that of for-profits by a significant amount. According to The New York Times, a study by the Urban Institute found the number of nonprofits in the U.S. grew by 25 percent, compared to just a half of one percent growth in the number of for-profit businesses.
Overall, the number of for-profits is still quadruple that of nonprofits, but the numbers, based on data collected between 2001 – 2011, still suggest things are looking up for the nonprofit sector. Nonprofits also outpaced their for-profit counterparts in hiring, wages and contribution to GDP, The Times reports.
Nonprofits are built for tough times
There are a number of different reasons for the jump in nonprofit growth, and the recession played no small part. The Times suggests that most of the growth can be pinned on both an aging population and one that has been chronically out of work for the past five years. Growing demand for nonprofit services is certainly one explanation for such large growth.
According to an infographic by Nonprofit Quarterly, the rise of nonprofits does make plenty of sense given the recent economic conditions that rounded out the last decade. Even in better times, nonprofits must be masters of running lean organizations. Funding is often unpredictable and demand can spike or fall without much notice. Because of this, they are naturally adept at weathering an economic downturn.
While a need for services could explain some of the growth, because nonprofits are not revenue based, it certainly does not explain all of it. Supply and demand does not hold as true in the nonprofit sector as it does in traditional business. Nonprofit growth was high because committed individuals saw a need for more services and made smart decisions that allowed them to keep the doors open.
Content presented by First Nonprofit Group, 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.
Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.
My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!
First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!
My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!
I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years
ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!
I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.
Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!