Real numbers from the IRS Form 990s of 185,557 nonprofits with paid staff. Pick your staff size and type to see what nonprofits like yours spend on health and other benefits.
Based on 7,195 human services nonprofits with 25–49 employees.
Benefits rise with size, from 55% of nonprofits with 1 to 9 employees to 98% of those with 250 or more. Spend rises too: 8.1% of payroll at the smallest, 15.5% at the largest.
of nonprofits with 10+ employees report paying for employee benefits.
nonprofits with 10+ employees
| State | Report benefits | % of payroll | Per employee | Retirement | Plans |
|---|---|---|---|---|---|
| Tennessee | 77% | 10.3% | $3,433 | 40% | Small-group plans |
| North Carolina | 77% | 10.7% | $3,043 | 47% | Small-group plans |
| Texas | 75% | 11.2% | $4,024 | 42% | Small-group plans |
| Alabama | 74% | 10.5% | $2,773 | 37% | Small-group plans |
| South Carolina | 74% | 12.4% | $3,789 | 43% | Small-group plans |
| Florida | 74% | 11.0% | $3,943 | 42% | Small-group plans |
| Georgia | 74% | 10.8% | $3,745 | 39% | Small-group plans |
| Louisiana | 71% | 10.9% | $3,822 | 40% | Small-group plans |
| Mississippi | 68% | 10.6% | $3,079 | 35% | Small-group plans |
| Employees | % of payroll FY23 | FY24 | Per employee FY23 | FY24 | Report benefits |
|---|---|---|---|---|---|
| 1–9 | 8.1% | 8.1% | $4,116 | $4,060 | 57% → 59% |
| 10–24 | 9.2% | 9.3% | $3,558 | $3,830 | 69% → 71% |
| 25–49 | 10.2% | 10.4% | $3,236 | $3,464 | 78% → 78% |
| 50–99 | 11.3% | 11.4% | $3,337 | $3,616 | 86% → 87% |
| 100–249 | 12.8% | 12.9% | $3,865 | $4,206 | 94% → 94% |
| 250+ | 15.0% | 15.3% | $5,287 | $5,741 | 98% → 98% |
130,343 nonprofits that filed a full Form 990 for both fiscal years, grouped by FY2023 headcount.
Source: IRS Form 990 e-filings, the same nonprofits in fiscal 2023 and 2024. Analysis: Thrive Benefits Group.
Form 990 Part IX, lines 8 and 9, nonprofits with $50,000+ in payroll. "% of payroll" and "per employee" are medians among nonprofits that report benefits; per-employee counts include part-time W-2 staff.
Source: IRS Form 990 e-filings, latest filing per nonprofit (mostly fiscal 2024 and 2025). Analysis: Thrive Benefits Group.
Nonprofits buy from the same kinds of health plans as for-profit employers. What's different is the budget: grant-funded payroll leaves little room for a surprise renewal. The right fit depends mostly on team size, how predictable the cost needs to be, and whether staff live in one metro or across state lines.
| Option | Fits when | Watch for |
|---|---|---|
| Small-group health plan | You want a traditional plan and have at least a few enrolled employees. | Premiums renew each year; the employer usually pays at least half of employee-only coverage. |
| Level-funded plan | Your staff is fairly healthy and you can handle a fixed monthly cost. | Needs medical underwriting. Some plans return part of unused claims money. |
| ICHRA | Staff live in different areas, or you want a fixed allowance per employee. | Employees buy individual plans. 50+ employers must keep the allowance affordable. |
| QSEHRA | You have fewer than 50 full-time equivalents and no group plan. | Annual IRS limits; can't be offered alongside a group plan. |
| PEO or association plan | You want to pool with other employers for buying power and HR help. | PEO benefits often show as fees, not benefits, on Form 990. |
| Section 125 plan (SIMRP) | You already offer a major medical plan and want to lower payroll taxes. | Sits beside your major medical plan. W-2 employees, 30+ hours a week, with qualifying major medical. |
Tax-exempt employers with fewer than 25 full-time equivalent employees and average wages under the IRS limit can claim up to 35% of the premiums they pay, as a refundable credit against payroll taxes, for two consecutive years. Coverage must come through the SHOP Marketplace.
One cost most nonprofit boards never revisit is the payroll tax paid on wages that go to benefits. Here's how a Section 125 plan works:
Employees make a pretax election under a Section 125 cafeteria plan. That election funds a written Section 105 plan, which reimburses substantiated §213(d) medical care. Qualified reimbursements are excluded from wages, which lowers FICA for both the employer and the employee.
Employers typically net about $50 per participant per month, about $600 a year, after fees. Setup takes about 4 weeks.
| Participants | Employer savings per month | Employer savings per year |
|---|---|---|
| 10 | About $500 | About $6,000 |
| 25 | About $1,250 | About $15,000 |
| 50 | About $2,500 | About $30,000 |
Estimated employer net savings, after fees, at about $50 per participant per month. Participants are W-2 employees working 30+ hours a week with qualifying major medical. Every payroll is modeled before go-live. With 3 participants, that's about $1,800 a year.
A free review against nonprofits your size and type.
Most with staff do: 79% of nonprofits with 10 or more employees report benefits spending on Form 990, and 98% of those with 250 or more. A $0 benefits line on a peer's 990 doesn't mean no health insurance: nonprofits that run payroll through a PEO often report benefits as fees.
Among nonprofits with 10 or more employees that report benefits, the median spend is 11.5% of payroll, about $4,026 a year per W-2 employee. Form 990 combines health insurance with other benefits.
Yes. Among the same 80,537 nonprofits with 10 or more employees, median benefits spending rose from $3,745 to $4,050 per W-2 employee between fiscal 2023 and 2024, and from 11.2% to 11.4% of payroll. Larger nonprofits saw the biggest jump.
Only applicable large employers are: 50 or more full-time employees, counting full-time equivalents. Tax-exempt status doesn't change the rule. Nonprofits under 25 may qualify for the small business health care tax credit.
It depends on headcount, budget and where staff live. Small-group plans suit stable local teams; ICHRA and QSEHRA suit fixed budgets or spread-out staff; level-funded plans suit healthier groups.
Not from FICA. 501(c)(3) organizations are exempt from federal unemployment tax (FUTA), but they pay employer FICA (7.65%) on wages like any employer.
Yes, if it qualifies as a small employer: fewer than 25 full-time equivalents, average wages under the IRS limit, at least half of employee-only premiums paid, and coverage through the SHOP Marketplace. Tax-exempt employers can receive up to 35% of premiums as a refundable credit against payroll taxes, for two consecutive years.