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.
Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.
My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!
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!
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!
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!
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!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.
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!