February 26, 2014
When it comes to managing costs at nonprofits, taxes can be a curveball. While nonprofits are exempt from many taxes, they must meet the obligation to state unemployment insurance. All employers pay into state unemployment pools and even organizations with no actual UI claims have yearly costs associated with the unemployment tax.
Unlike other employers, nonprofits do have the opportunity to opt out of the fund and become self-reimbursing employers. After making this decision, nonprofits can enroll in a Unemployment Savings Program or a Bonded Service Program with First Nonprofit. The programs provide benefits to a number of nonprofits.
The most significant advantage of opting out of SUI tax pools is the immediate cost savings. New members with First Nonprofit saved an average of $24,780 dollars in their first year, from 2010 to 2014. That’s an average reduction of 30 percent. Other nonprofits have saved even more.
First Nonprofit helps every step of the way
While nonprofits can become self-reimbursing employers on their own, they open themselves up to potential financial risks if unemployment at their organization suddenly spikes. The programs provided by First Nonprofit can shield organizations from these risks and provide other benefits.
With First Nonprofit’s solutions, organizations will receive assistance in the process of opting out and selecting the program that offers the most cost savings. Organizations that pay into the savings program will have an asset that they can carry on their books and one that will be returned to them should they ever decide to discontinue their membership. The ability to pay into the program in equal payments made each quarter can help a nonprofit with its budget as well.
For information on how your organization can cost-effectively meet its unemployment insurance needs, contact First Nonprofit Companies at FNCUI@firstnonprofit.com or visit www.firstnonprofitgroup.com.
First Nonprofit has saved us so much money over the state’s program. We had one little glitch with the state recently and we contacted FNP immediately. FNP staff called us back immediately and moved to remedy the problem.
First Nonprofit has been a great partner. They have helped us saved hundreds of thousands of dollars! They have awesome resources for our nonprofit organization. Thanks for the partnership.
Life is certainly busy these days but having business partners like First Nonprofit has made some of the process hassle free. We have worked with this team for years. When we changed payroll systems, they outlined every step. I think this team is terrific and I know they get the job done! Thank you, Cruz, to all the team at FNP.
FNP has helped our agency to save thousands of dollars every year on our unemployment coverage. The service is phenomenal, and we are thankful to their team as our partner. My experience working with Marshall on the advocacy around UE for nonprofits was also a highlight as someone who teaches advocacy and lobbying for nonprofits. Really, your whole team is top shelf, so thank YOU!
Chicago Children’s Theatre has greatly benefited from our partnership with First Nonprofit, and I have always enjoyed working with the staff on our filings and any complicated questions. I would not hesitate to recommend First Nonprofit to fellow nonprofits. We’re very happy customers.
FNP is a great resource for Daniel Kids. To have a TPA that we can count on to take point on not only managing our unemployment claims, but to support and guide any protest hearing, is invaluable. All the professional support staff we have worked with have been excellent, very knowledgeable and responsive. We are grateful for the help and support, thank you.
When I first began in my position at my organization, I hadn’t had experience working with a company like FNP. The staff was so patient and helpful in helping to explain the benefits of First Nonprofit. Anytime I reach out with a question I receive a quick, clear, and thorough response. I’m so thankful that we decided to partner with FNP. Their excellence in customer service, coupled with their variety of packages frees us up to truly serve our staff and community with a peace of mind knowing that our organization is protected against unanticipated unemployment insurance expenses.
First Nonprofit gets an A+ in my book. You are so easy to work with & very knowledgeable! Whether it is my quarterly correspondence with Kim or my random interactions with Dawn about a bond … I am so pleased that I get to work with such a helpful company. Thank you!