Employee Benefits for Non-Profits: Building Sustainable, Competitive Plans in Canada

Employee benefits have become an increasingly important — and increasingly complex — part of the non-profit employment landscape. As organizations work to attract and retain talent in a competitive labour market, benefits are no longer viewed as a “nice to have,” but a core component of overall compensation and employee well-being.

At the same time, non-profits face unique pressures: fixed or grant-based funding, heightened accountability, diverse workforces, and limited tolerance for cost volatility. Designing a benefits program that is both sustainable and meaningful requires a thoughtful, sector-aware approach.

Below are several trends and considerations we see most often when working with non-profit organizations across Canada.

Benefits Are Now a Core Part of Non-Profit Compensation

According to the 2025 Canadian Nonprofit Sector Salary & Benefits Report published by CharityVillage and The Portage Group, 86% of participating non-profit organizations provide health benefits to at least one level of staff, and 58% offer some form of retirement benefits.

This data reinforces an important reality: benefits are no longer peripheral in the non-profit sector. For many roles — particularly leadership, management, and specialized positions — benefits are an expected part of the total compensation package.

At the same time, benefit availability and plan design vary widely depending on organization size, funding model, and workforce composition. This often leads to challenging conversations around affordability, equity, and long-term sustainability, particularly as renewal costs continue to rise.

Workforce Realities and Benefits Utilization in the NPO Sector

Non-profit work is often mission-driven, emotionally demanding, and service-oriented. In practice, this can lead to higher utilization of certain benefits, particularly mental health supports, counselling services, and disability-related coverage.

While claims experience varies by organization, these patterns highlight the importance of thoughtful plan design, risk management, and stable funding structures. Benefits programs that lack sufficient pooling or flexibility can expose non-profits to year-over-year volatility that places additional strain on operating budgets.

Why Pooled Benefits Plans Can Be a Strong Fit for Non-Profits

For many non-profits, pooled benefits plans offer a practical balance between coverage, predictability, and cost control.

One example is the Chambers of Commerce Group Insurance Plan, which is Canada’s largest small-business benefits plan. The Chambers Plan is structured as a not-for-profit program, meaning any surplus earnings are reinvested back into the plan rather than distributed to shareholders.

For eligible non-profits, this model often aligns well with governance and stewardship principles. Broad risk pooling helps smooth claims experience over time, while the plan’s structure supports long-term sustainability rather than short-term profit generation.

Benchmarking Benefits to Support Retention and Responsible Governance

Benchmarking helps non-profits align benefits with workforce needs and long-term sustainability.

Benefits decisions in the non-profit sector are rarely made in isolation. Boards, executive teams, and funders increasingly want reassurance that compensation and benefits programs are competitive, defensible, and aligned with market norms — without overspending limited resources.

This is where benefits benchmarking plays an important role.

Through access to benchmarking tools such as CloudAdvisors, non-profit organizations can compare their benefits plans against relevant peers by industry, organization size, and region. This allows leadership teams to better understand how their plan compares within the broader market and whether it supports attraction and retention goals.

From an employee perspective, benchmarking also supports transparency. Staff may not expect non-profits to lead the market, but they do want confidence that their benefits are fair, competitive, and thoughtfully designed. Data-backed insights help support those conversations and reinforce trust.

Benefits Are Only as Valuable as the Communication Behind Them

Even the most thoughtfully designed benefits plan falls short if employees do not understand how to use it.

In the non-profit sector, where teams are often stretched thin and administrative capacity is limited, clear and consistent communication is essential.

At Informa Financial, we emphasize employee benefit information sessions delivered in plain language, along with simple, accessible communication tools. This often includes a two-page overview: one page outlining the benefit package itself, and a second page focused on how to access key services such as telemedicine, Employee Assistance Programs, and mental health supports.

Clear communication helps employees better understand the value of their benefits while reducing confusion, frustration, and unnecessary escalation during claims or life events.

A Sustainable, Thoughtful Approach to Non-Profit Benefits

Non-profit benefits planning is not about offering the richest plan on the market.

It is about building a program that supports employee well-being, aligns with organizational values, remains financially sustainable, and is easy to understand and administer.

Whether an organization is reviewing its existing plan, preparing for renewal, or considering benefits for the first time, a structured, sector-aware approach can help transform benefits from a source of stress into a stabilizing force for both employees and leadership teams.

Considering a Second Opinion on Your Non-Profit Benefits Plan?

We work with non-profit organizations across Canada to review employee benefits plans with a focus on sustainability, competitiveness, and clear communication — without pressure to change providers.

A brief, no-obligation conversation can help clarify whether your current plan remains a good fit for your organization and your team.