July 31, 2014
Risk management is certainly a popular topic for nonprofits that want to remain agile and effective. However, there’s one area that tends to be overlooked by such groups: state unemployment taxes (SUTA). The two traditional options for covering the SUTA obligation are paying into the state fund, as a for-profit business would, or electing to become a reimbursing employer and paying out unemployment claims directly, dollar for dollar. Paying the tax into the state fund often means overspending on unemployment taxes and losing money even if your organization has low or no unemployment claims in a given year. The reimbursing employer strategy provides more financial control, but can be extremely risky if an organization experiences a rise in unemployment.
First Nonprofit Group (FNG) offers the safest available programs that mix the best aspects of these two approaches into a risk-averse, cost-effective solution. By providing far more control over unemployment costs, FNG alternatives help nonprofits save money while also protecting them from pooled risk. By employing the use of surety and insurance coverage products and avoiding the cost-pooling elements of contributing to a SUTA fund, nonprofits don’t waste money that could otherwise be spent on operational and project budgets, as well as future claims. With a managed savings or insurance plan, nonprofits can carry such funds as an asset in their books and can even borrow against it when needed. The combination of predictable fees and equal quarterly payments – instead of the heavy first- and second-quarter contributions common with SUTA funds – helps normalize contributions and lessen the financial burden on nonprofits.
First Nonprofit Group also offers the customer support that is lacking from the other options available to charitable groups. Instead of dealing with state 1-800 numbers and dedicating staff members’ valuable time to dealing with these issues, First Nonprofit Group’s customers can use the services of friendly, dedicated and experienced representatives to handle their unemployment needs.
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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.
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!