October 22, 2013
Around the country, nonprofits are finding that working together and pooling resources can help keep the doors open during lean times and create an exchange of valuable ideas. Alliances can be based on geographic location and common goals or needs.
The National Council of Nonprofits supports exploring the option of strategic alliances, but also warns organizations to remain conscious of potential drawbacks and risks. Organizations need to make sure they don't put their tax exempt status in jeopardy by joining too closely with for-profits or by drastically changing funding with private benefit transactions. Even in the most basic of alliances, the council recommends drawing up a letter of agreement outlining the expectations and responsibilities of the alliance.
Theaters share resources in Harrisburg
In Pennsylvania, a number of theaters are working to market each other's work and come up with creative ideas for increasing attendance and programs, according to Nonprofit Quarterly. The Harrisburg Area Theatre Alliance is group of actors, producers and directors promoting the area's mix of theaters.
The groups will share production resources such as props and customers, and work together on marketing and educational campaigns. The effort reduces costs and increases awareness of community, professional and campus theater in the central part of the state.
"We should all be helping each other to stay open," Brenda Eppley, one of the founding members told NPQ. "It benefits all of us. No one is going to lose their autonomy by joining this alliance."
Statewide alliances for nonprofit awareness
The Alliance for Nevada Nonprofits connects nonprofits throughout the state to help keep them up to date on legislative issues and nonprofit sector news. The alliance provides relevant information to its members and seeks to strengthen the nonprofit presence in Nevada.
Under the umbrella of the larger National Council of Nonprofits, many states have similar alliances or organizations aimed at increasing the success and impact of local nonprofits.
Other alliances exist to specifically help organizations with similar affiliations, such as education, health care and the arts. These groups help each other in many different ways but mainly through the sharing of pertinent information.
Savings on Unemployment Insurance
Nonprofits can also benefit from collaborations such as First Nonprofit's Unemployment Savings Program. The partnership includes over 1,000 nonprofits that have taken advantage of a unique UI savings program. With First Nonprofit, 501(c)(3) organizations can opt out of State UI tax pools and utilize an alternative funding option through private insurance. The option is not available to for-profit entities and is just one of many cost-saving alliances that nonprofits have access to.
Nonprofits can find information about alliances in their area by visiting the National Council of Nonprofits, or create their own by starting roundtable discussions with area organizations. Nonprofits that take advantage of collaborative efforts and alliances reduce financial strain and have greater access to resources and information related to the nonprofit sector.
For information on how your organization can cost-effectively meet its unemployment insurance needs, contact First Nonprofit Companies at FNCUI@firstnonprofit.com or visit www.firstnonprofitcompanies.com.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
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.
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!