Nonprofit US

Nonprofit

Nonprofits that embrace risk management will flourish.

Download Report

What to Expect in 2025

Nonprofit organizations will need to prioritize critical risk management initiatives as economic and reputational challenges grow even greater. With the right business strategies and advisors, nonprofits who lean into the opportunity can confidently achieve their mission and win big in 2025.

Download Report

Economic Viability

Agility will be key to navigating ongoing financial uncertainty.

Vitality

A supportive culture will be essential to strengthen a struggling workforce.

Resiliency

Holistic risk management planning remains essential to achieving goals.

Theme Name

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt.

Agility will be key to navigating ongoing financial uncertainty.

1 | Economic Viability

52%

of the U.S. public trusted nonprofits in 2023, down 7 percentage points from 2020.1

A supportive culture will be essential to strengthen a struggling workforce.

2 | Vitality

of nonprofits report having cyber insurance.

Holistic risk management planning remains essential to achieving goals.

3 | Resiliency

Stubborn inflation, job market volatility and fluctuating donor contributions have left many nonprofits in a tenuous financial situation, forcing them to adopt a wait-and-see approach to funding sources. Nonprofit organizations are largely dependent on government contracts and donations to carry out their missions, as well as support from a large volunteer staff force. However, ongoing political and economic uncertainty is taking a toll on the sector. The cost of everything — employee salaries and benefits, fuel, rent and insurance — continues to rise, making it difficult for organizations to plan and operate effectively. Although charitable giving increased 1.9% to $557.2 billion in 2023, it did not outpace the rise in expenses.2 Rate cuts announced by the Federal Reserve could help ease inflation slightly in 2025,3 but it will not be enough to solve the nonprofit sector’s persistent economic challenges. And, in general, Americans are giving less than they have in the past, with the overall share of individuals who donate to nonprofits decreasing from 82% in 1983 to 67.2% in 2023.4 Nonprofits need to consider other ways to capture new revenue, such as diversifying their funding sources to be less dependent on declining income from individual donations. Foundational giving, for example, now comprises 19% of total charitable giving, compared with 6% in 1983, and corporate giving rose 14.3% over the last five years — both of which helped offset the

individual decline.5 Organizations can also secure new revenue sources in 2025 by contracting with government agencies for specific services. Many nonprofits are exploring mergers and acquisitions with other nonprofits that offer similar services if they cannot overcome current economic pressures on their own. Others are broadening the spectrum of their social service offerings to include immigration or housing, which could enable them to receive more government funding. According to the HUB International 2025 Outlook Executive Survey,6 48% of nonprofits are planning to implement a strategic partnership, merger or acquisition in the next 24 months. However, these new activities come with increased risk that requires the help of an advisor who understands the potential M&A pitfalls from due diligence to close. Whether considering an M&A or remaining independent, organizations need to work with industry experts, including an insurance broker who specializes in this sector, to help manage costs. With expenses at an all-time high, nonprofits cannot afford to pay more for coverage they don’t need, but they must ensure they are protected against evolving exposures. The right insurance broker will have access to analytics tools that can provide the required level of coverage without breaking the budget.

Download Report

Nonprofits need to maintain a strong workforce to be effective, but that hasn’t been easy given the sector’s financial struggles. While nonprofit employment grew 4% between 2021 and 2022 — faster than the private sector’s 1.5% growth during the same period — 20% of nonprofit employees reported living paycheck to paycheck.7 This has contributed to higher rates of burnout and more people leaving nonprofit employment for better-paying industries. Nonprofit respondents of the HUB survey acknowledged there is work to be done when it comes to recruitment and retention, with 47% of U.S. respondents and 56% of Canadian respondents identifying it as a key priority that needs to be addressed in 2025. Organizations must also contend with reputational challenges brought on by a recent increase in employment-related lawsuits. Discrimination charges against employers overall were up 10% in 2023 compared with 2022, and the Equal Employment Opportunity Commission has stepped up its enforcement of protections against anti-discrimination employment laws.8 Nonprofits are particularly vulnerable to these claims, depending on the sector they serve, which can cause serious reputational damage, hurting their ability to attract and retain staff. Volunteer participation, which has already been on a steady decline, can be negatively affected as well.9 To counter these challenges, organizations must foster a people-centric culture that protects its staff and volunteers.

This can include developing a compelling Employee Value Proposition (EVP) and total rewards strategy to generate excitement within the organization where everyone feels not only valued but also like they are contributing to the greater cause. Additionally, utilizing employee benefits analytics can provide important insights into what benefits employees want or need, such as mental health support, without increasing costs. According to the HUB survey, more than half of all nonprofit respondents are using benefits analytics to streamline costs, improve individual outcomes and keep their healthcare plan solvent. Providing access to personal insurance and financial wellness tools can also be a differentiator for employers to address a major component of employee stress, enhance recruitment and increase productivity. Case Study A service-based organization was challenged in providing benefits that lined up with for-profit companies in the area. Beyond the mission, the organization needed to be smarter on the benefits they offered. Using HUB's Workforce Persona Analysis™, they identified a few subgroups of employees that they could focus on. Improving their specific employee experience by adding low cost and no-cost access benefits immediately created goodwill. Solving certain challenges - such as backup childcare - and enhancing PTO/leave programs for grandparents bolstered the reasons they stayed in the organization.

Download Report

A comprehensive risk management strategy is crucial to ensuring nonprofits maintain a strong financial performance and reputation — and can ultimately determine their long-term resilience. Unfortunately, many nonprofits are still taking a piecemeal approach to preparing and responding to the many risks they face, whether it be protecting their employees or the populations they serve, responding to disasters, or preparing for future challenges like climate change or cyber threats. Implementing an enterprise risk management (ERM) strategy creates alignment within the organization — from the CEO and board members to staff and volunteers — which is critical to managing the inherent risks of operating a nonprofit. A well-structured insurance program with adequate limits is an integral part of a nonprofit’s comprehensive risk management strategy, but limited carrier capacity for critical coverages like sexual abuse and molestation and higher insurance rates has made it difficult for many nonprofits to get the coverage they need. With sexual abuse and loss payments against youth-serving organizations reaching as high as $10 million in some cases, capacity is unlikely to improve anytime soon.10 In fact, 92% of carriers expect the sexual abuse and molestation market will harden in the next three years, with 85% of carriers projecting

higher premiums and 78% anticipating increased underwriting requirements that include organizational abuse risk processes.11 Companies that do not implement proven sexual abuse prevention policies will face serious challenges ahead. Nonprofits must also work proactively to protect against cyber-related threats as their dependence on technology increases, including artificial intelligence, to run their organizations and process financial transactions. The majority are simply not doing enough to mitigate cyber risks and the financial and reputational damage that comes with it. According to the HUB survey, only 29% of respondents from nonprofit organizations have cyber insurance to protect their organization. Case Study A nonprofit that specializes in working with at-risk youth reached out to HUB fearing it was under a ransomware attack, exposing vulnerable patient and resident data. HUB immediately put an action plan into place to minimize access to emails and other sensitive information. After bringing in forensic accountants, it was determined there was no data stolen during the event. The client was not only relieved that the impact was minimal and resulted in a total claim under $60,000, but the organization also took the opportunity to train its staff to be better prepared in the future.

Download Report

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip.

Download Report

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor.

4 | Theme Name

Navigating Your Next Steps

HUB nonprofit insurance specialists will work with you to develop a tailored strategy for 2025.

Develop a comprehensive risk plan.

A thorough enterprise risk management (ERM) process can help identify exposures and place your nonprofit in the best light in case of an incident. Work with a broker who understands how to strategically approach risk and identify gaps in the organization.

Create a personalized benefits strategy.

Personalized benefits can differentiate your organization from other nonprofits. Adopt a creative approach to benefits — such as funding them through a human capital endowment — to deliver more affordable benefits that give you an edge in recruiting and retaining talent.

An incident can be devastating to a nonprofit’s reputation. Take advantage of your broker and insurer’s expertise if an event occurs. They can assist with developing a thorough crisis response plan to minimize financial and public relations impact.

Rely on your broker in a crisis.

Consistent communication with your insurance broker will help identify and mitigate issues in advance of renewal and position your organization to get the right coverage at an affordable rate. Review exposures and insurance needs at least 90 days prior to policy renewal to allow your broker to find the optimal mix of coverage for your organization’s needs.

Be transparent with your broker.

Be Prepared

Download our 2025 Nonprofit Outlook and Insurance Market Rate Report to see what to expect in the coming year.

Download Report

Meet the Experts

Practice Leader

Nonprofit Practice

Scott Konrad

Linkedin Profile

Risk Advisor

Barry Baird

Nonprofit Practice

Linkedin Profile

Expert

Dan LaRock

Nonprofit Practice

Linkedin Profile

Expert

Michelle Dix

Nonprofit Practice

Linkedin Profile

Job Title Here

Firstname Lastname

Practice Name Here

Linkedin Profile

Job Title Here

Firstname Lastname

Practice Name Here

Linkedin Profile

Job Title Here

Firstname Lastname

Practice Name Here

Linkedin Profile

Expert

Kim Cochrane

Nonprofit Practice

Linkedin Profile

Job Title Here

Firstname Lastname

Practice Name Here

Linkedin Profile

Job Title Here

Firstname Lastname

Practice Name Here

Linkedin Profile

Job Title Here

Firstname Lastname

Practice Name Here

Linkedin Profile

Job Title Here

Firstname Lastname

Practice Name Here

Linkedin Profile

HUB Nonprofit

When you partner with us, you’re at the center of a vast network of experts who will help you reach your goals. For more information on how to manage your insurance costs, reduce your risk and take care of your employees, talk to a HUB nonprofit insurance specialist.

About Us

$550M

in commercial insurance premium brokered by HUB

20,000

nonprofit clients

50,500

insurance policies managed

Safeguarding the Vulnerable: Create a Culture of Safety in Your Organization

Webinar

Watch now

Prevent and protect your organization from sexual misconduct liability risk to...

Whitepaper

Download now

Contract Workers or Employees: The Risks of Misclassifications to Nonprofits

Article

Read now

Related Resources

US | EN

CA | FR

CA | EN

US | EN

Transportation

Real Estate

Nonprofit

Hospitality

Healthcare

Financial Institutions

Entertainment & Sports

Education

Construction

Cannabis

Agribusiness

Industry Outlooks

Retirement

Private Client

Personal Insurance Marketplace

Employee Benefits

Product Outlooks

North American Outlook

4. GivingUSA.org, “5 Takeaways and Next Steps from the Giving USA 2024 Report,” July 2, 2024.

5. GivingUSA.org, “5 Takeaways and Next Steps from the Giving USA 2024 Report,” July 2, 2024.

6. HUB’s 2025 Outlook Executive Survey polled 900 C-Suite and VP-level executives on the issues facing them on profitability, employee vitality and organizational resilience.

7. Nonprofit Quarterly, “Health of the Nonprofit Sector: The Latest Data,” February 27, 2024.

8. U.S. Equal Employment Opportunity Commission, "2023 Annual Performance Report," February 23, 2024.

9. University of Maryland Do Good Institute, “New Research Report Examines Recent Declines in Giving and Volunteering in America,” November 1, 2023.

10. Praesidium, “Praesidium SML Report 2024,” accessed September 5, 2024.

11. Praesidium, “Insurance Carrier Benchmarking: Sexual Abuse and Molestation Liability,” April 2023.

2. GivingUSA.org, “5 Takeaways and Next Steps from the Giving USA 2024 Report,” July 2, 2024.

3. Associated Press, “Powell at Jackson Hole: ‘The time has come’ for the Fed to soon begin reducing interest rates,” August 23, 2024.

20%

of nonprofit employees report living paycheck to paycheck.

29%

Only

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt cupidatat non.

Sitemap

Terms & Conditions

Privacy Statement

Industry Outlooks

Retirement

Private Client

Personal Insurance Marketplace

Employee Benefits

Product Outlooks

Transportation

Real Estate

Nonprofit

Hospitality

Healthcare

Financial Institutions

Entertainment & Sports

Education

Construction

Cannabis

Agribusiness

North American Outlook

Keep pace with the latest trends.

Stay in the Know

Learn more about us.Visit hubinternational.com

1. Independent Sector, “Health of the U.S. Nonprofit Sector,” accessed October 3, 2024.