Nonprofits that delegate to outside experts can focus more on mission

October 21, 2013

Nonprofits that delegate to outside experts can focus more on mission

Nonprofit leaders struggling to provide services while also maintaining the day-to-day responsibilities of their organization can become overwhelmed. There are services available that understand the complexity and importance of the hurdles that nonprofits encounter, such as UI tax insurance and complicated HR issues.

HR outsourcing option
Nonprofits that have found they are cash-strapped and failing to concentrate on their mission as a result of weak human resources department may want to consider outsourcing. One way this benefits the nonprofit is not having to choose between an employee that has a strong skill set for daily responsibilities but lacks managerial skills, or vice-versa.

According to Nonprofit Quarterly, there are many reasons that nonprofits choose to outsource HR, including:

  • HR needs have outgrown the expertise of current staff
  • The HR department has experienced a high volume of turnover and the organization lacks the resources to create the HR department that they need
  • A nonprofit no longer has the financial resources to support an internal HR department
  • State and federal laws regarding employment laws and regulations are confusing and time consuming, and large penalties are levied for failing to comply 

Outsourcing HR helps nonprofit organizations relieve HR headaches – regardless of what they might be – by leaving the job in the hands of professionals. Organizations can turn over all HR responsibilities to an outside firm, or use them to supplement existing department employees. HR responsibilities can occur off site, or outsourced employees can work at the nonprofit's office.

Options for handling UI responsibilities
Just as employment laws can create headaches for HR departments, UI tax can also place a burden on nonprofits. Nonprofits do have the option to take UI into their own hands by self-insuring, which removes the unpredictability of state UI tax pool trust funds, but replaces them with unprotected liabilities. However, self-insuring is not the only option for nonprofits that leave state UI tax pools.

Similar to the full outsourcing of HR responsibilities, nonprofits can opt out of state UI tax pools and join private UI groups. Private insurance offers nonprofits the same savings as other state UI tax alternatives but with more options and less risk. They also help nonprofits manage claims, ensuring that they are operating within the guidelines of a self-reimbursing employer.

Financial management and consulting services
Nonprofits can also turn to outside experts for help managing their financials. Services, such as those offered by First Nonprofit group, can help directors, executives and management teams in a variety of ways.

Consultants can help nonprofits review the effectiveness of their financial statements, improve competency and practice, and prepare a comprehensive plan. Financial consulting services can also help nonprofits increase funding by evaluating current strategies and helping to design new ones.

Content presented by First Nonprofit Companies, the leading provider of a full-range of state unemployment insurance alternatives for 501(c)(3) nonprofit employers.

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Testimonials

The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.

Ensight Skills Center, Inc, Fort Collins, CO

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.

Visually Impaired Preschool Services, Louisville, KY

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, Chicago, IL

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.

Prevent Blindness America, Chicago, IL