Non-Profit's Thrive
During All Time Lows

Men and women help each other to collect garbage.

How PEOs Can Help Non-Profit Organizations Thrive During All-Time Lows By Providing a Safety Net

Whether they’re promoting educational initiatives, helping raise funds for medical research, or advocating for the environment, nonprofit organizations do tons of good work in communities across the globe. As end-of-the-year reporting is starting to be released in the media, it is pretty obvious that non-profit organizations are facing some of the largest losses ever due to the cash constraints the pandemic has had on donations. Not all non-profits were in the red though.  Some have continued to thrive by using a PEO partner solution to keep cash flow stable to avoid relying on solely donations to survive. A PEO is a safety net for Non-Profits & for profit businesses alike due to their experience and ability to manage cashflow during economic uncertainty or a down year to maintain payroll and business expenses until the uncertainty is lifted.

Men and women help each other to collect garbage.

Unfortunately, one thing many of them have in common is that they’re spread too thin, especially from a financial and administrative standpoint.


“They’re dealing with limited resources,” said Patrick Moraites, a partner and vice president at Tampa-based Axis Group. “That can really be a distraction and it can impact the nonprofit’s ability to serve their mission.”


If you’re involved in a nonprofit and feeling the strain of having to do too much with too little, there is a lifeline out there – and it’s called a PEO.


A PEO, formally known as a Professional Employer Organization, is a single-source provider of integrated business services that allows small businesses including nonprofits to responsibly and cost-effectively outsource administrative duties such as human resources, payroll and other employee-related tasks. And because PEOs can leverage economies of scale, they can help nonprofits and other small businesses secure health insurance and other top-tier benefits at rates they could never afford on their own.


So what exactly can hiring a PEO do for a nonprofit? Let’s start by talking about the HR component, which on its own is extremely beneficial. Many nonprofits can’t afford to hire a certified HR professional, a key position that can really shape the culture of an organization and create a positive and high-energy work environment.


“The starting salary for HR professionals is around $65,000,” said Moraites, who is himself involved in several nonprofits. “If your executive director is making $50,000, it can be hard to justify paying an HR person more.”


However, by hiring a PEO, nonprofits will have access to a dedicated HR professional who can take over a variety of time-consuming tasks including onboarding, payroll and training while helping protect the nonprofit from potential employee-related liabilities such as harassment or discrimination.


Next, we mentioned that PEOs can help nonprofits obtain health insurance and other benefits at reasonable rates by leveraging economies of scale. That gives the nonprofit a huge leg up in terms of retaining employees and attracting new ones. Why? Because they’ll be able to offer their employees and their potential new hires a host of options when it comes to health insurance and retirement plans, a major incentive in today’s competitive labor market.


“All of those things are available through the PEO at no additional cost,” Moraites said. “It’s all built into the administration fee that the PEO charges.”


Another huge plus in hiring a PEO is that it can help regulate cash flow, which is critical for nonprofits that deal with the often unpredictable nature of donations. Because PEOs offer a pay-per-cycle type of contract, nonprofit directors know up front what their expenses will be so they can plan ahead and maximize their operating budgets.


Finally, many PEOs that work with nonprofits end up giving back to the organization in the form of sponsorships or donations, making it truly a win-win for everyone.


“The more you give, the more you get back in return,” Moraites said. “It really comes around full circle.”


Is hiring a PEO the right move for your nonprofit? Let the team at Axis Group help you make an informed decision. To schedule a no-obligation consultation, click here.

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