A QSEHRA is an IRS-approved health benefit that allows small businesses (those with fewer than 50 full-time equivalent employees) to offer a tax-free reimbursement to employees for their health insurance premiums and other qualifying health expenses.

"While many nonprofits consider group health insurance the optimal benefits solution, the cost and complexity of these plans are leading nonprofits to offer nothing at all," said Victoria Glickman Hodgkins, PeopleKeep CEO.

"So, there's an urgent need to educate nonprofit employers about alternative benefit solutions, like QSEHRAs, that may be a much better fit, which is why we are sharing this report and analysis."

Related: More American workers offered ICHRAs and QSEHRAs, with no sign of slowing down

The longer a firm offers a QSEHRA, the more allowance they provide. Nonprofits that are new with QSEHRA benefits provide a monthly allowance of $420, while firms sporting 3+ years of experience give $500 on average. The size of a nonprofit does not necessarily mean less of an allowance. Organizations with 1-4 employees offer an allowance of $480, while nonprofits with 20-49 employees provide $580 in allowance.

Interestingly, some nonprofits offer more allowances than some small businesses. PeopleKeep is the first company to deliver cloud-based QSEHRA admin, and has reported data on the benefit since it was available in 2017. They report on small businesses and nonprofit organizations. Many of the same trends hold true for both of these groups—smaller organizations offer substantial benefits, and the longer an organization uses QSEHRAs, the more allowance they offer.