Nonprofit sector recovering from recession

March 17, 2014

Nonprofit sector recovering from recession

The time could be perfect for many nonprofits to re-evaluate their obligation to state UI tax pools. Nonprofit HR has announced a recent survey that suggests organizations are recovering from The Great Recession. The survey found 45 percent of nonprofits increased staff in 2013, compared to just more than 19 percent in 2009, at the height of the recession.

In 2014, more than 20 percent of nonprofits intend to increase hiring and only 7 percent plan to eliminate positions. Because unemployment at these organizations will remain low, it is a good time for leaders to consider making their nonprofit a self-reimbursing employer.

Cost savings with less risk
As a self-reimbursing employer, an organization can opt out of paying into state UI tax pools and pay the state only for the amount of UI costs actually associated with claims paid out to former employees. The only downside is that when unemployment spikes at an organization, there is no pool to help pay the costs. This can lead to a large amount of unfunded liabilities and force a nonprofit to reduce programs.

However, nonprofits can get the cost benefits of self-reimbursement without the risk by gaining membership in a nonprofit savings program. These alternative measures for meeting UI obligations allow nonprofits to protect their assets by building up funding in an account that they own. It can be used to pay for increases in unemployment and is returned to the nonprofit if they ever leave the program.

Organizations also gain access to experts in the UI industry that have a unique understanding of the specific challenges faced by the nonprofits they serve. UI insurance programs for nonprofits are the best way to save money but also remain prepared should another recession suddenly hit.

For information on how your organization can cost-effectively meet its unemployment insurance needs, contact First Nonprofit Companies at or visit


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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.

WI Council of Religious & Independent Schools (WCRIS), Madison, WI

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.

Community Care Inc., Milwaukee, WI

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.

Gulfside Healthcare Services, New Port Richey, FL

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!

Advancing Academics, Turtle Creek, PA

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.

Chicago Children’s Theatre, Chicago, IL

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.

Daniel Kids, Jacksonville, FL

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.

Homes of Hope, Chicago, IL

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!

Women's Choice Network, Pittsburgh, PA