Nonprofit HR’s Blog

To understand how mission-driven organizations are navigating today’s evolving landscape of compensation, benefits, and workforce strategy, we turned to the voices of those leading the charge. The 2026 Nonprofit Total Rewards Practices Survey drew responses from over 350 nonprofit organizations committed to advancing equity, transparency, and strategic workforce practices. Together, they offer a snapshot of how mission-based employers are balancing financial sustainability with fairness, competitiveness, and employee well-being. 

Nonprofit organizations continue to navigate an environment defined by rising costs, shifting donor priorities, and increasing community need. Within this landscape, employee benefits become more than just a compliance requirement or a line item, they reflect organizational values, culture, and care. The latest survey insights reveal how nonprofits are striving to support their teams with dignity and intention, even when resources are limited.

Expanding Access

Nearly half of nonprofits (47%) identified expanding employee access to benefits as their top priority for 2026. This includes extending eligibility to part‑time staff, broadening dependent coverage, and introducing new benefits that meet evolving needs.

This focus speaks to something deeply characteristic of the sector: Nonprofits often lead with equity, even when budgets are tight. Expanding access is not just a benefits strategy, it’s a values statement.

Listening to Employees

Almost 70% of nonprofits are actively gathering employee feedback through surveys, focus groups, and utilization data. This shift toward listening is significant. It reflects a recognition that benefits must be shaped with employees, not just for them.

For many organizations, this is also a practical necessity. When every dollar matters, understanding what employees truly value helps ensure benefits investments are both impactful and sustainable.

Core Benefits

Most nonprofits offer foundational benefits such as medical, dental, vision, and retirement plans. These offerings remain the backbone of nonprofit total rewards.

Yet gaps persist, particularly in areas like disability insurance, life insurance, and family-building benefits. These omissions are rarely due to lack of care; they are often the result of difficult trade-offs between affordability and comprehensiveness.

Premium Contributions

Nonprofits continue to prioritize affordability for employees:

• 43% cover 76–100% of employee-only medical premiums
• 35% cover 51–75%

This generosity is notable given the sector’s financial pressures. However, dependent coverage remains more limited, with many organizations contributing less than half. This disparity can create challenges for caregivers and families, an area where nonprofits may seek to evolve as resources allow.

Funding Models

More than 60% of nonprofits rely on fully insured plans. Only a small portion use self-funded or pooled arrangements, which require risk tolerance and administrative capacity that many nonprofits simply don’t have.

This preference for stability is understandable. Predictability is essential when budgets depend on grants, contracts, and philanthropy.

Retirement Benefits

While 80% of nonprofits offer retirement plans, only 60% provide matching contributions. And just 10% have explored pooled or group retirement options, despite their potential to reduce administrative burden and improve affordability.

As the workforce becomes more financially stressed, retirement support will increasingly influence retention and organizational competitiveness.

Barriers to Expansion

When nonprofits do not offer certain benefits, the reasons:

• 70% cite cost
• 20% cite administrative complexity
• 10% cite lack of employee interest

These responses reflect the sector’s reality: Nonprofits are constantly balancing mission delivery with the responsibility of caring for their teams. Every decision is a trade-off.

Supplemental Benefits

Many nonprofits offer EAPs, wellness programs, and FSAs, but fewer provide supplemental benefits like commuter support, legal services, or financial counseling. These lower-cost offerings can meaningfully improve employee well-being, especially for staff navigating economic stress.

A Sector That Leads with Heart, Even When Resources Are Thin

The data tells a story of nonprofits doing everything they can to support their people while navigating real constraints. Benefits decisions in this sector are rarely transactional, they are deeply tied to mission, equity, and care.

As nonprofits continue to face funding volatility and rising costs, the path forward will require creativity, collaboration, and a continued commitment to listening. But one thing is clear: Even in the face of challenge, nonprofits remain steadfast in their dedication to supporting the people who make their missions possible.

Survey Respondent Information

The organizations vary in size, structure, and maturity, most operate with teams under 1,000 staff and rely heavily on government and foundation funding. About one-third have unionized staff, underscoring a mix of labor environments and organizational models. The vast majority of organizations in this dataset are small to mid-sized, with slightly more than 50% having an operating budget under $20m; with 34% having an operating budget between $20m-$50m.

Respondents span a wide array of sectors, including health and human services (22%), education (13%), and philanthropy (10%). With 83% identifying as nonprofit and the majority in a maturity or sustainability phase, these organizations represent a grounded yet aspirational cohort, one actively shaping the future of equitable and strategic workforce practices.

Contributing Author

Lisa McKeown
Managing Director, Total Rewards
OneDigital, Nonprofit Practice 
View Lisa’s bio