The Challenge:
Over 12 million people work for nonprofits across the United States in a wide variety of jobs. These workers fill vital roles in health care, education, social services, advocacy, religious institutions, and other parts of civil society. A thriving workforce is critical for nonprofit organizations to effectively serve their communities and help all people in the U.S. thrive.
We know that many nonprofit workers experience high levels of stress and burnout in their jobs, but a substantial number also struggle to make ends meet. Around one in five nonprofit workers earn less than they need to meet all their household needs.
The Research Partnership:
Independent Sector has partnered with United For ALICE to better understand the status of nonprofit workers facing financial insecurity across the United States. ALICE® stands for Asset Limited, Income Constrained, Employed: workers who earn above the federal poverty level but still live paycheck to paycheck. These workers struggle to afford the cost of household necessities like housing, child care, food, transportation, health care, technology, and taxes.
A leadership committee of more than 20 experts across nonprofits, philanthropy, government, and academia is helping inform this research and its dissemination.
Next Steps:
This fall, Independent Sector and United For ALICE will release a report on employees in the U.S. nonprofit workforce who earn less than the minimum income needed for household survival, known as the ALICE Threshold. That report will be followed by a fact sheet on the benefits of bringing those workers up to the ALICE Threshold. Next year, we will launch an interactive dashboard with national data, later expanding to include state-level data.
This research project will guide Independent Sector’s advocacy for the nonprofit workforce by giving us detailed answers to questions about which nonprofit workers are below the ALICE Threshold — and how to build interventions to improve their financial security and sustain their employment:
- How do rates of financial hardship differ from one nonprofit subsector to another?
- How are factors like disability, race, gender, education, and household composition associated with ALICE status?
- Are struggling nonprofit workers able to access public assistance and health insurance?
Answering these questions is a first step in advocating for changes that will not only improve individual lives, but also build equity and sustainability in one of the largest U.S. areas of employment.
