Why Your Nonprofit Should Consider Dependent Care FSAs as Part of Your Benefits Package

ARTICLE | February 02, 2026

In today's competitive hiring environment, nonprofits must offer more than just mission-driven work to attract and retain top talent. With childcare costs rising 1.5 times faster than inflation, working parents are increasingly seeking employers who understand their financial challenges. Dependent care Flexible Spending Accounts (FSAs) offer a powerful solution that benefits both your organization and your employees. These accounts allow staff to use pretax dollars for qualifying childcare and dependent adult care expenses, reducing their taxable income while lowering your payroll tax burden. Before investing in a dependent care assistance program (DCAP), it's essential to understand the benefits, compliance requirements, and whether your team would actually use this valuable benefit.

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