August 20, 2014
On the heels of recent news that most areas of charitable giving are on the rise comes the finding that foundations are providing more grants to nonprofits. According to a study from the Council on Foundations, reported on by The Chronicle of Philanthropy, 56 percent of foundations increased their grant awards to charitable organizations in 2013. This is a significant increase over similar giving in 2012, when 47 percent of foundations had a rise in grants provided.
For any nonprofit group, getting a grant from a foundation is a big deal. Funds provided by a foundation grant usually come in a large block, as opposed to the many smaller donations gathered from individuals and businesses. Making the most out of a received grant means cutting down on unnecessary expenses and appropriately managing risks so that awarded funds can be directly applied to programs and vital operational budget components.
One area in which many nonprofits don't realize they can save money is how they fund their unemployment obligations. Instead of paying into the state unemployment tax (SUTA) fund, charitable groups can, instead, elect to become reimbursing employers. This approach allows for the compensation of jobless claims on a dollar-for-dollar basis, meaning nonprofits won't be liable for payment unless a claim is made – an impossible consequence when paying taxes into a SUTA fund. However, a spike in unemployment can put a serious strain on the reimbursing employer approach as well. First Nonprofit Group offers solutions that provide the best of both worlds, by covering a nonprofit's SUTA obligation with flexibility while increasing cost control by directly reimbursing for claims
For information on how your organization can cost-effectively meet its 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 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!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.