October 11, 2024
Great Hearts America is a nonprofit school management organization that operates a network of elementary, middle, and high schools in San Antonio, Ft. Worth, and Irving, Texas; the Phoenix, Arizona Metropolitan area; and East Baton Rouge, Louisiana, with new academies planned for Florida in Fall 2025.
Unemployment Insurance Savings:
In 2017, Great Hearts America’s unemployment tax notice showed a reserve balance of over $900,000. This amount reflected the difference between what they paid in state unemployment tax (SUTA) and the actual unemployment claims filed by former employees. However, Great Hearts didn’t own that reserve. Their state’s unemployment agency used it to calculate future tax rates, essentially tying up funds that could have been used elsewhere.
Seeking a more cost-effective approach, Great Hearts America partnered with First Nonprofit’s Bonded Service Program in January 2018. Since then, they’ve cut their unemployment costs by over 60%, achieving over $1 million in savings this year alone. This financial relief has allowed them to redirect critical resources to their educational mission.
Compliance Support:
As remote work surged during the COVID-19 pandemic, Great Hearts America faced new compliance challenges. Nonprofits with employees working across state lines are often uncertain about their unemployment liabilities. Do you need to register for unemployment if only a few staff members work in different states? What are the state requirements for registering an unemployment account?
In 2023, First Nonprofit stepped in to assist Great Hearts America in answering these questions and registering unemployment accounts in four additional states outside of their Arizona headquarters. With First Nonprofit’s continued support, Great Hearts plans to register 15 more state accounts in 2024, ensuring compliance without the administrative burden.
About First Nonprofit:
With over 30 years of experience, First Nonprofit offers tailored unemployment, risk management, and HR solutions to more than 2,300 nonprofit, tribal, and governmental organizations across the U.S. and Puerto Rico. First Nonprofit is committed to helping nonprofits save money and simplify compliance so they can focus on their missions.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.
Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.
It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.
NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.
Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.
The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.
In addition to their money-saving purpose on behalf of nonprofit organizations like AHS, First Nonprofit’s Nonprofit Unemployment Fund streamlines the information we need to efficiently manage unemployment claims. Our relationship with NU Fund gave us access to such things as advice on planning for what’s ahead and how to analyze cost scenarios when unexpected events occurred. Both experiences were very helpful.
We have had a great experience with FNP. During Covid, when there was the chance that reimbursable nonprofits would have to pay 50% of the unemployment costs, FNP went to bat for us. We would receive weekly information on the Unemployment claim and how they were working to reduce the costs to reimbursable nonprofits. They have a great service also working with [our claims administrator] to make sure all the paperwork is completed correctly for any unemployment claim.