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

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

We were introduced to First Nonprofit through another housing authority. In our analysis and comparison to what we were paying the State, our first year savings was $5,800 plus. We have been with them since the end of 2008 and I am glad we have been. I consider them an arm of our HR department.

Kankakee County Housing Authority, Kankakee, 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

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.

Hugh Parry, Retired President of Prevent Blindness America