The Nonprofit FAQ
| What kinds of health insurance do nonprofits offer employees? |
| On July 28, 2005, Michael Wyland asked: How common is it, in your experience, for management team members of nonprofits to receive employer-paid family medical coverage? Donald A. Griesmann of the Community Service Support Center, Inc., in Ventnor, NJ, provided this information in reply: The NPOs I have worked in and with whom I am familiar have coverage for employees including management and pay a certain amount for dependents. Many also have developed a "Cafeteria Plan" or "Flexible benefit account" so that employees can pay for that coverage with pre-tax dollars. Those employees who do not want coverage are paid a sum not to have the employer-paid insurance. That sum may pay for insurance maintained by the spouse's employer; it is taxable income. There are a number of NPOs where the CEO has full family coverage while the other employees have less employer-paid coverage. For material about the "Cafeteria Plan" see
Over-the-counter drugs have been added to allowable cost under a Cafeteria Plan See the discussion at Workforce Health coverage and other benefits are often the subject of negotiation between boards and CEO candidates who are offered jobs. Posted 7/29/05 -- PB |