Highlights
- Nonprofits often deal with budget constraints, tricky regulations, and difficulties attracting and retaining talent.
- Professional Employer Organizations (PEOs) can help nonprofits focus on their mission, by taking over HR administrative tasks like payroll, benefits management, and compliance.
- AccessPoint provides PEO solutions for nonprofits, enabling them to attract highly qualified staff, offer competitive benefits, and maximize their potential. Learn how we can help your organization!
Nonprofit organizations face unique HR challenges: They need to stay competitive in attracting and retaining talent and navigate complex regulations. All this, while operating on limited budgets and resources. With so many things to handle, it might be hard to focus on fulfilling your organization’s mission. That’s where a PEO — short for Professional Employer Organization — can change the game.
Learn how partnering with a PEO for nonprofits can help you spend more time making the world a better place and less time worrying about recruiting, benefits, payroll, insurance, liability, and other HR concerns.
Let’s dive in!
HR Challenges of Nonprofit Organizations
Running a nonprofit organization is a rewarding endeavor, but it also comes with its own set of HR challenges:
- Lack of experience. Nonprofits often have smaller HR teams, sometimes with staff who wear many hats. This can lead to a lack of expertise in complex HR tasks like recruitment, performance management, and legal compliance.
- Limited budget. Nonprofits may struggle to compete with salaries and benefits offered by companies in the private sector, which makes it challenging to attract and retain qualified professionals. This, of course, hurts the people and the communities who lose access to vital services such as food, shelter, or mental health care.
According to the National Council of Nonprofits, 74% of surveyed nonprofits reported job vacancies and 3 out of 10 have longer waiting lists for their services.
- Complex compliance regulations. Nonprofits must comply with a wide range of federal, state, and local employment laws and regulations. This can be a time-consuming and overwhelming task for HR teams with limited resources.
5 Benefits of Partnering with a PEO for Nonprofits
More and more businesses – including nonprofits – are beginning to see the value of PEOs. According to the National Association of Professional Employer Organizations (NAPEO), approximately 250,000 small to medium-sized businesses (SMBs) and 2.5 million people take advantage of PEO arrangements.
A PEO can be a strategic ally for your nonprofit organization, reducing the administrative workload and helping you work more efficiently.
Let’s see how partnering with a PEO can help nonprofit organizations:
Focus on What Counts
Nonprofit executives are experts in their organizations but know very little about HR.
By letting PEOs handle administrative, time-consuming HR tasks, nonprofits’ board members, executive directors, and staff will have more time to focus on key concerns, like developing programs, raising funds, and attracting new members and volunteers.
Run Your Organization More Efficiently
Nonprofits often understaff to decrease administrative expenses and increase program support.
When you partner with a PEO, you can streamline daily business operations and strategically manage HR functions such as:
- Recruitment
- Employee relations
- Health benefits
- Retirement plans
- Payroll
- Taxes
- Workplace safety
- Workers’ compensation
- Unemployment insurance
- Regulatory compliance
Improving efficiency and cutting costs can lead to higher ratings from Charity Navigator, United Way, and Better Business Bureau for nonprofits. This can help you attract more donors, sponsors, and volunteers to support your organization.
Save Money
“Budget constraints prevent two out of three nonprofits from raising salaries, hiring more staff, or upgrading equipment.”
— National Council of Nonprofits
With the help of PEOs, nonprofits can gain access to the expertise of an entire HR department – HR director, employment attorney, benefits specialist, payroll specialist, and work safety manager – at a price that may be the same or less than the salary of a single HR employee.
PEOs also provide user-friendly tools and comprehensive resources that would otherwise require a huge investment.
Keep Your Organization Safe and Compliant
PEOs work in a co-employment relationship. This means that they become the legal employer of your nonprofit’s staff and assume all employment responsibilities. Their primary goal is to reduce risks and liabilities, so they take a proactive approach to prevent – and, if necessary, manage – lawsuits and claims.
Nonprofits are subject to specific requirements, such as volunteer safety or grant compliance. That’s why it’s crucial to choose a PEO that specializes in nonprofits, as they will have a deeper understanding of the challenges, risks, and regulations of the sector.
Attract and Retain Dedicated Talent
Nonprofits usually can’t compete with private companies when it comes to salaries and employee benefits. But PEOs have pooled client buying power and are eligible for high-quality benefits packages that most charitable organizations can’t afford.
By partnering with a PEO, you can overcome the disadvantage of lower salaries by offering premium benefits – including medical and dental insurance, life and disability insurance, paid time off (PTO), and retirement plans – that can help you attract top talent and increase employee retention.
Find the Right Partner for Your Nonprofit
Don’t let HR responsibilities get in the way of making the world a better place. PEOs provide HR expertise so you can focus on your nonprofit’s mission, appeal to donors, and attract and retain talent.
At AccessPoint, we care about your nonprofit initiatives and offer tailored and flexible HR solutions based on your goals. Our team of experts is ready to support your organization, whether you need support finding qualified talent, managing employee benefits, or dealing with specific legal requirements.
Simplify HR for your nonprofit. Contact us for a customized PEO plan!