March 28, 2014
The New Hampshire House recently killed a bill that would have placed a new tax obligation on some of the state's nonprofits. While lowering the overall business tax from .75 percent to .68 percent, it would have required larger nonprofits to pay the tax for the first time, according to New Hampshire Public Radio.
Some members of the house expressed concern that the bill would place already fragile nonprofits and charities at risk. The motivation for the bill was based on the belief that some of the largest nonprofits employ many individuals and compete with companies in the private sector.
While the bill in New Hampshire failed, nonprofits across the nation have been met with increasing financial obligations to the communities that they serve as state and local governments look for ways to recover revenue lost during the recession.
The Chronicle of Philanthropy recently reported a tax plan announced to the U.S. House of Representatives would place a 25-percent surtax on nonprofits that pay more than $1 million to their employees. While the bill is predicted to be a tough sell during an election year, it still represents a changing attitude among lawmakers regarding the amount of tax that nonprofits should pay.
Organizations can still control UI costs
While nonprofits may be losing tax exemptions elsewhere, they can still save money on state unemployment insurance by becoming reimbursing employers. As a reimbursing employer, they are responsible only for the actual cost of claims submitted against their own organization, and do not need to make tax payments to state tax pools. However, organizations still need direction and a safety net when becoming reimbursers.
With unemployment savings programs, such as those offered by First Nonprofit Group, organizations can enjoy the cost savings of becoming a reimbursing employer but with less risk. Because nonprofits are still responsible for paying UI claim debt, without a savings plan UI costs could be devastating if unemployment suddenly spikes.
UI programs come with the services of experts in the nonprofit field who can ensure that claims are paid correctly and on time. They can also help organizations choose from a number of different plans, based on unemployment history, size and other factors.
For information on how your organization can cost-effectively meet its unemployment insurance needs, contact First Nonprofit Group at FNCUI@firstnonprofit.com or visit www.firstnonprofitgroup.com.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
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!