February 26, 2014
When it comes to managing costs at nonprofits, taxes can be a curveball. While nonprofits are exempt from many taxes, they must meet the obligation to state unemployment insurance. All employers pay into state unemployment pools and even organizations with no actual UI claims have yearly costs associated with the unemployment tax.
Unlike other employers, nonprofits do have the opportunity to opt out of the fund and become self-reimbursing employers. After making this decision, nonprofits can enroll in a Unemployment Savings Program or a Bonded Service Program with First Nonprofit. The programs provide benefits to a number of nonprofits.
The most significant advantage of opting out of SUI tax pools is the immediate cost savings. New members with First Nonprofit saved an average of $24,780 dollars in their first year, from 2010 to 2014. That’s an average reduction of 30 percent. Other nonprofits have saved even more.
First Nonprofit helps every step of the way
While nonprofits can become self-reimbursing employers on their own, they open themselves up to potential financial risks if unemployment at their organization suddenly spikes. The programs provided by First Nonprofit can shield organizations from these risks and provide other benefits.
With First Nonprofit’s solutions, organizations will receive assistance in the process of opting out and selecting the program that offers the most cost savings. Organizations that pay into the savings program will have an asset that they can carry on their books and one that will be returned to them should they ever decide to discontinue their membership. The ability to pay into the program in equal payments made each quarter can help a nonprofit with its budget as well.
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.firstnonprofitgroup.com.
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!