How Nonprofits can Benefit from Working with a PEO

Just like any other organization, nonprofits can find themselves wasting time on mundane and repetitive HR tasks that take away from the important, mission critical tasks of the organization. A Professional Employer Organization (PEO) can help take your non-profit to the next level by handling all HR responsibilities, and allow you to focus your time on the essential work needed to be successful. Here are 4 ways a non-profit could benefit from working with a PEO.

Allows You to Focus on Your People

A lot of work goes into non-profits in order to have a strong mission for serving others, and a PEO can help you obtain that. In order for non-profits to execute their visions, they need to make sure that their team shares the same values and ideals. Working with a PEO can help you with the recruitment, engagement and development of your workforce so you can obtain the ideal team for your non-profit.


No matter the size of your staff, organizations need to ensure they stay compliant with all state and local regulations. Oftentimes businesses handling HR responsibilities in-house cannot keep up with the ever-changing regulations on top of the day-to-day functions, which can lead to costly oversights. With a PEO, you can run a responsible organization as they implement fully functional HR systems, policies and procedures to stay compliant.


Unfortunately non-profits often struggle with budgetary constraints considering they have to request grants, seek out donors, and fundraise for future projects. In addition, they battle with providing similar levels of attractive benefits as for profit organizations. People who want to work for a greater cause than money still want to make sure they will be taken care of, which can make recruitment of top talent challenging for non-profits.

This is why it’s beneficial for nonprofits to work with a credible PEO as they have expanded buying power to provide your organization with the benefits needed to keep your employees happy. For less than the cost of hiring an HR professional, you gain access to Fortune 500 level benefits, HR support, and risk compliance support.

Improved Time Management

Having one managed system for all things HR can be a huge time management advantage for any organization. It means that administrators and employees only need access to one system for all HR needs, benefits, and payroll. Time being spent on HR busy work is time being lost for the other tasks needed to run your nonprofit.

When you partner with a PEO, all that mundane work is passed on to an organization that knows exactly how to handle those matters. This allows you to focus on more fulfilling work and not have to worry about compliance issues, payroll or other timely HR tasks.

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