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.
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.
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.
Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.
I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!
I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years
ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!
My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!
First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!