Advancing Data-Driven Strategies to Help Nonprofit Workers Financially Thrive

Nonprofit organizations are the backbone of America’s communities. They connect people to essential services, strengthen our social safety net, and often serve as a lifeline for vulnerable individuals and families. The sector has grown steadily for the past two decades – even expanding during the Great Recession. Today, nonprofits employ more than 12 million workers in the U.S. and contribute over $1.4 trillion to the U.S. economy each year.

Despite this substantial impact, the financial well-being of nonprofit workers has remained largely unexamined – a missed opportunity for advancing both worker equity and nonprofit sustainability. Through Prudential Financial’s work with nonprofits and the company’s focus on solving financial challenges, Prudential identified the need for more robust data on the financial health of America’s nonprofit workforce, keeping in mind that, for the nonprofit sector to thrive, its workforce must be Financially Healthy.

The need for insights is increasingly urgent as nonprofits face staffing shortages, mounting financial pressures, and increased demand for their services. Analysis from Candid finds that if government grants ceased, more than 14,000 nonprofits employing 2.8 million workers would exhaust their cash reserves within three months.

Recognizing the vital role financial well-being plays in the nonprofit sector, Prudential Financial worked with the Financial Health Network to conduct a first-of-its-kind study examining the financial health of nonprofit workers across the United States. This initiative is rooted in Prudential’s purpose to improve lives by solving the financial challenges of a rapidly changing world. Published in September 2025, “The Financial Health of Nonprofit Workers” delivers actionable insights for employers, policymakers, and grantmakers—aimed at enhancing employee well-being, improving retention, and supporting long-term organizational sustainability.

To shed light on this critical yet understudied segment of the American workforce, Prudential supported the Financial Health Network in fielding a new nationally representative survey between December 2024 and January 2025, reaching 1,180 nonprofit employees. Beyond insights into workers’ overall financial health, the study examined broader dimensions of job quality – like available benefits and work arrangements.

Nonprofit workers differ in several ways from the broader workforce: They’re disproportionately women, more likely to hold advanced degrees, and more likely to carry student loan debt. These differences shape their financial realities and underscore the importance of examining total compensation and overall financial health across the sector.

The study offers timely insights into the financial realities of nonprofit employees by examining which workers are more often Financially Healthy, who has access to essential benefits, and whether nonprofit jobs adequately meet employees’ financial needs.

Key findings include:

• Nearly 70% of nonprofit workers are not Financially Healthy, and about 1 in 7 are Financially Vulnerable.
• Workers in nonprofits with budgets under $1 million and those outside hospitals or universities face greater financial vulnerability.
• White nonprofit workers are more likely to be Financially Healthy (41%) than Hispanic (22%) and Black nonprofit workers (20%).
• 1 in 7 nonprofit employees lack access to at least one core benefit (health insurance, retirement, sick leave, or paid time off). When benefits are offered, adoption is high – but satisfaction is lowest among Financially Vulnerable workers, people of color, and employees in smaller-budget organizations.
• Nonprofit workers value wages 3.3x as much as their next most-valued job attribute (work/life balance), underscoring the central role of compensation in overall financial health.

The Prudential and FHN study highlights that strategic, data-driven investment in the nonprofit workforce is essential – not only to advance worker well-being, but also to sustain the organizations strengthening America’s communities. Nonprofits that fail to address workers’ financial needs risk losing talent, weakening their ability to deliver on their mission and depriving communities of vital services.

Additionally, disparities within the nonprofit sector must be addressed. Workers at smaller-budget organizations and those outside hospitals or higher-education institutions face the steepest financial health challenges – yet those smaller nonprofits collectively employ a large share of the sector’s workforce. Meeting their needs is critical to advance equity in the sector and strengthen the capacity of nonprofits across the country.

The report outlines actionable next steps to strengthen worker financial health and the overall sector:

• Employers can increase wages where possible, improve access to and use of benefits, and offer more flexible work arrangements.
• Grantmakers can strengthen organizational capacity by offering unrestricted general operating support, particularly for nonprofits with fewer resources.
• Policymakers can further incentivize the provision of core workplace benefits, like paid leave programs and retirement plans.

Prudential is committed to championing research and partnerships that help expand access to financial security. A prime example of this in action is Prudential’s vision for reframing retirement to meet the needs of modern workers – a top priority cited by many nonprofit workers themselves. Through innovative, award-winning products and high-impact engagements, Prudential is helping more people live better lives, longer.

Interested in learning more about the financial health of nonprofit workers? Explore the full report here.