April 23, 2014
Insurance agents who want to help their nonprofit clients save money and protect them financially from increasing unemployment insurance costs can assist these organizations in opting out of state unemployment insurance (UI) tax pools. 501c3 nonprofit organizations and governmental agencies have the option to self-insure and not pay via the tax method that all for-profit companies follow. This self-insurance designation, called reimbursing, allows nonprofits to avoid the volatility and price increases associated with state UI tax pools.
First Nonprofit Group provides alternative funding and risk management programs for nonprofits that maximize the savings of being a reimbursing employer while also mitigating the risk and difficulty of self-insuring. Organizations across the country have saved as much as 40 percent on their annual UI costs with savings programs from First Nonprofit Group.
Their cost-saving solutions are available to organizations with at least 10 employees and located in all 50 states. Any governmental employers and all 501(c)(3) organizations are eligible. First Nonprofit Group currently has more than 1,600 organizations in its various programs, covering more than 300,000 employees.
All nonprofits benefit from alternative measures for UI funding
Regardless of the size or mission of a nonprofit, opting out of state UI pools provides a significant reduction in UI costs. First Nonprofit Group has offered savings to a wide variety of organizations across the country. Below are a few examples of members in First Nonprofit Group's programs and their savings.
Nonprofit organizations change over time, as do their needs, that's why there are four options that insurance agents can help nonprofit clients choose from: a Bonded Service Program, an Unemployment Savings Program, Excess Loss Insurance and Surety Bonds. Unlike the State Unemployment Tax Fund, agents are eligible to receive commission for products.
For information on how your nonprofit clients can cost-effectively meet their 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.
We’ve been a member of First Nonprofit’s Unemployment Savings Program since 2011 and highly recommend joining. The program is terrific and allows us to earn interest on our own funds while still meeting the state’s requirements on unemployment payments. In addition, the staff are great and always helpful sorting out any questions we may have. Thank you all!
CCSCT was approached by First NonProfit to discuss its Unemployment Savings Program and ways the program could significantly reduce the amount of unemployment taxes we were paying. At the time, our agency was paying approximately $80,000 per year. First NonProfit conducted an analysis to determine if making the switch would be in our best interest, and it clearly was based on our circumstances. The first year on the program, CCSCT saw a 70% reduction in its unemployment costs and each year, continues to experience further reductions as a result of having minimal claims. Some additional benefits of the program including having a fixed annual cost, an interest-baring reserve account, professional unemployment claims management and representation at all unemployment hearings. This has been one of the best decisions we have made.
We first started using First Nonprofit’s Unemployment Savings Program when we were a small startup nonprofit. We didn’t have an HR department and needed expertise in the event that an unemployment claim was made. We knew we were eligible to be a reimbursing employer, but weren’t sure how to navigate that process. They made it easy to set things up, plan for, and then manage claims when they came at a very reasonable cost. The amount of time and stress they’ve saved us dealing with all this has been worth way more than the cost. We’ve now grown to a large nonprofit and do have an HR department but have no plans to stop using their services. I highly recommend them to every nonprofit I come into contact with!
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.