An Introduction to the Nonprofit Sector
Let’s start by dispelling a few of the persistent myths about nonprofits, such as…
- Nonprofits have no money. Nonprofits generally have their sights set on loftier goals than the bottom line, but that doesn’t mean they don't care about making money. In fact, NPOs have to generate revenue or they wouldn't be able to serve their community. What sets them apart from for-profits is that the entirety of their revenue must go toward running the business – that includes paying for salaries, the organization's activities, and other expenses.
- Nonprofits have no paid staff. On the contrary, the most recent data from the Bureau of Labor Statistics shows that nonprofits employ 11.4 million people. That translates into a little over 10 percent of the private employment in the United States.
- Nonprofits are large and have lots of resources. Big-name nonprofits dominate the sphere, but the majority of NPOs are small operations. Take, for example, public charities. According to the Urban Institute, 66.4 percent of the nonprofits that offer free or low-cost services, like a soup kitchen or a learning center, tally annual revenue of less than $500,000.
Hopefully, this information demonstrates the potential growth the nonprofit sector represents for your insurance agency. Still skeptical? Then it might help to know that the IRS reported an 8.6 percent increase in the number of nonprofit organizations between 2002 and 2012.
Nonprofits can be a great market for the insurance agent who learns about the industry. That’s where this guide comes in. It can help you grow your agency by showing you…
- The important questions to ask when working with an NPO client.
- The kinds of organizations that provide the best ROI.
- Some ideas for targeting nonprofit organizations.
Knowing the industry lets you place risks with confidence, but so does joining Insureon Solutions. When you combine this guide with our insurance technology and universal application, you can get accurate quotes to your NPO clients in minutes. Keep reading to learn more.