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.


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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.

Lutheran Services Carolinas, Salisbury, NC

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!

Stone Valley Community Charter School, Huntingdon, PA

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Jewish Silicon Valley, Los Gatos, CA

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American Saddlebred Horse & Breeders Association, Inc., Lexington, KY

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

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Beardstown Community Unit School District 15, Beardstown, IL

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Innovative Services, Inc., Green Bay, WI

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Visually Impaired Preschool Services, Louisville, KY

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Neurologic Music Therapy Services of Arizona, Phoenix, AZ