Page 20 - 2025 Nonprofit Industry Trends

2025 NYC SALARY REPORT
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EDWARD PROBST CHRISTINE DESKA
PRESIDENT PRESIDENT & CO-FOUNDER
VANGUARD BENEFITS BELLESBOARD &
NONPROFIT SECTOR STRATEGIES

Administrative complexity and effectively communicating the value of benefits will be critical For 2025, where we have an incoming administration that is unlikely to prioritize
challenges for nonprofits in providing benefits to their employees. Limited HR resources and important government programs and social safety nets, nonprofits will be
ever-changing compliance regulations can overwhelm nonprofit organizations, leading to stretched even thinner in many verticals, which is difficult to imagine.
inefficiencies and errors in managing benefits. Additionally, employees may undervalue
or misunderstand the benefits offered if they are not clearly communicated, diminishing Many smaller organizations will see funding cuts that could lead to them
their perceived importance in overall compensation. To address these issues, nonprofits needing to close their doors or form alliances with larger partners in order to
can invest in user-friendly HR technology, such as benefits administration platforms, to survive. Meanwhile, larger organizations are already bracing themselves for an
streamline processes and ensure compliance. Partnering with a Professional Employer unprecedented demand for their services but with less resources to deliver on
Organization (PEO) can also alleviate administrative burdens and provide access to expert these critical missions.
support. To enhance communication, nonprofits should prioritize regular education about
benefits through interactive workshops, one-on-one consultations, and personalized 2025 will be a convergence of Economic Uncertainty (ongoing or emerging threats
ABOUT PNP: Total Compensation Statements. These efforts not only simplify administration but also such as inflation or a potential recession), Technological Disruption (as AI and
increase employee appreciation and engagement, maximizing the impact of their benefits other advanced technologies reshape how nonprofits operate), Cybersecurity
Since 1996, PNP STAFFING GROUP, also known as Professionals for offerings. Threats (especially with increased reliance on digital platforms), Evolving
NonProfits, has been providing talent exclusively to the nonprofit sector. Adopting a Total Rewards approach and enhancing employee benefits are critical Donor Expectations (increased demand for transparency, measurable impact,
Specializing in Executive Search and Direct Hire, Interim Professionals, strategies for nonprofits to retain top talent and improve employee satisfaction. A Total and innovative approaches), Climate Change Impacts (more climate-related

Consultants, and Contract/Temporary Staff – we offer every staffing Rewards approach goes beyond salary to encompass a holistic package, including events could increase the demand for services in several verticals), Policy Shifts
competitive benefits, career development opportunities, recognition programs, and
solution a nonprofit may need in your organization or remotely. workplace flexibility, all tailored to meet the diverse needs of employees. By enhancing & Regulatory Changes, (changes in tax laws, government funding priorities, or
nonprofit regulations) and finally, Competition for Attention & Funds – where
benefits—such as offering robust health insurance, mental health support, retirement we’ll continue to see a crowded nonprofit landscape, coupled with ongoing global
savings plans, wellness programs, and family-friendly policies—nonprofits can create crises.
With a deep understanding of the nonprofit sector, local expertise with a more attractive and supportive work environment. These changes demonstrate
a commitment to employees’ well-being and professional growth, fostering loyalty
a national reach, and 25 years of experience, PNP helps organizations and engagement. For resource-constrained nonprofits, leveraging partnerships with In closing, nonprofits are going to need more support than ever as 2025 kicks off –
I strongly encourage nonprofit leaders to join like-minded resource and advocacy
make smart hiring decisions to advance their mission, and build diversity, Professional Employer Organizations (PEOs) or adopting self-funded insurance models groups such as the Nonprofit Resource Hub (which is free for nonprofits to join!)
sustainability, and capacity. can help achieve these enhancements cost-effectively. Together, these strategies position in order to have a diverse, strong support system in place in order to collectively
nonprofits as desirable employers while aligning organizational culture with the mission-
driven values that inspire. tackle and overcome these challenges.