National Nonprofit Day reflects the history of tax-exempt organizations, but many are now worried about their future.
The pandemic impacted all organizations, but it especially exacerbated existing issues concerning many nonprofit organizations. Many are now trying to maintain their mission goals amid increased demand and reduced resources. National Nonprofit Day, August 17, is a reminder of the important work mission-driven organizations do and the specific challenges they face to keep running.
The August date reflects the passage of the Wilson-Gorham Tariff Act of 1894, a bill that dramatically altered the country’s fledgling federal tax code. Though the act was overturned by the U.S. Supreme Court just a year later, one of its provisions had a lasting legacy: Providing tax-exemptions for charitable organizations such as religious and educational institutions and community service groups.1
In the 127 years since its signing, tax code, employment regulations and compensation requirements have only gotten more complex, emphasizing nonprofits’ need for highly customized strategies to manage their resources. Additionally, the pandemic has left many nonprofits coping with reduced budgets, increased costs and competition for talent. Nearly half of surveyed New Jersey nonprofits reported financial uncertainty among the biggest challenges to their effectiveness. Responses also frequently highlighted increased benefit/insurance costs and the inability to afford good staff.2
While many nonprofits are facing a funding and staffing crunch, each nonprofit is different, and their priorities and solutions should be unique as well. Their missions, cultures and programs vary depending on their beneficiaries, location, cause and scope.
Corporate Synergies believes your organization’s employee benefits programs should reflect your organization’s unique workforce and values. It is our goal to connect with your partners, your employees and your beneficiaries to enhance your culture with programs that attract and retain the mission-driven talent you need to create the future you envision for your organization.
We’re honored to work with so many great nonprofit organizations. We look forward to another successful year and exploring more solutions to help with recovery and cost management.
In the meantime, if you’re planning the perfect National Nonprofit Day celebration, check out NonProfitPRO’s top five tips.
1 TaxHistory.org, “Why Did Congress Exempt Social Welfare Organizations?”
2 Center for Non-profits, “New Jersey Non-Profits 2021 Trends and Outlook”
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© 2021 Corporate Synergies Group, LLC. No part of this material may be republished or distributed without prior written consent.
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