A Brief History of Unemployment Insurance

September 16, 2015

A Brief History of Unemployment Insurance

2015 marks 80 years since unemployment insurance was signed into law by President Franklin D. Roosevelt. In 1935, the United States of America was plagued with retired and laid off workers due to its economic instability during the Great Depression. Unemployment insurance benefits were created as part of the Social Security Act to address the needs of those workers during temporary phases of unemployment. Thirty-seven years later, in 1972 Congress required nonprofits to cover their employees for Unemployment benefits (governmental employees became covered in 1976). Since its inception, Unemployment insurance has compensated millions of Americans in the for-profit and nonprofit sectors who became unemployed through no fault of their own.

In recognition of Unemployment Insurance’s 80th anniversary, the following brief time line illustrates the history of unemployment insurance and First Nonprofit Group’s commitment to helping nonprofits and governmental agencies properly fund this risk.


Content presented by First Nonprofit Group, the leading provider of state unemployment insurance solutions for 501(c)(3) nonprofit employers



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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.

New York Council of Nonprofits, Albany, NY

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. We are impressed with the accuracy of their employment decisions, integrity of their employees and efficiency of their claim handling. We greatly respect and value the consistent, impressive cost savings from the utilization of their outstanding services.


Thresholds, Chicago, IL

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.

Illinois Network of Charter Schools

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.

Hugh Parry, Retired President of Prevent Blindness America