Insurance agents: Save nonprofit clients up to 40 percent on state UI costs

April 23, 2014

Insurance agents: Save nonprofit clients up to 40 percent on state UI costs

Insurance agents who want to help their nonprofit clients save money and protect them financially from increasing unemployment insurance costs can assist these organizations in opting out of state unemployment insurance (UI) tax pools. 501c3 nonprofit organizations and governmental agencies have the option to self-insure and not pay via the tax method that all for-profit companies follow. This self-insurance designation, called reimbursing, allows nonprofits to avoid the volatility and price increases associated with state UI tax pools.

First Nonprofit Group provides alternative funding and risk management programs for nonprofits that maximize the savings of being a reimbursing employer while also mitigating the risk and difficulty of self-insuring. Organizations across the country have saved as much as 40 percent on their annual UI costs with savings programs from First Nonprofit Group.

Their cost-saving solutions are available to organizations with at least 10 employees and located in all 50 states. Any governmental employers and all 501(c)(3) organizations are eligible. First Nonprofit Group currently has more than 1,600 organizations in its various programs, covering more than 300,000 employees.

All nonprofits benefit from alternative measures for UI funding
Regardless of the size or mission of a nonprofit, opting out of state UI pools provides a significant reduction in UI costs. First Nonprofit Group has offered savings to a wide variety of organizations across the country. Below are a few examples of members in First Nonprofit Group's programs and their savings.

  • A housing services organization with 64 employees reduced its UI costs with First Nonprofit Group from $21,766 annually to $9,981, a savings of nearly $12,000.
  • A child services organization with 333 employees made annual contributions of $88,824 to state tax pools. The organization's annual cost dropped to $54,700 with membership in a First Nonprofit Group plan, saving more than $34,000.
  • Joining a First Nonprofit Group program saved an educational services organization with 172 employees almost 50 percent on its UI costs. Instead of annual state tax payments of $199,728, the organization is now saving nearly $95,000 with a total annual payment of $105,000.

Nonprofit organizations change over time, as do their needs, that's why there are four options that insurance agents can help nonprofit clients choose from: a Bonded Service Program, an Unemployment Savings Program, Excess Loss Insurance and Surety Bonds. Unlike the State Unemployment Tax Fund, agents are eligible to receive commission for products. 

For information on how your nonprofit clients can cost-effectively meet their unemployment insurance needs, contact First Nonprofit Group at or visit


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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.

Lutheran Services Carolinas, Salisbury, NC

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!

Stone Valley Community Charter School, Huntingdon, PA

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!

Jewish Silicon Valley, Los Gatos, CA

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!

American Saddlebred Horse & Breeders Association, Inc., Lexington, KY

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!

Beardstown Community Unit School District 15, Beardstown, IL

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!

Innovative Services, Inc., Green Bay, WI

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY

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!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ