Offset #UBIT Costs with FNP

July 19, 2019

Offset #UBIT Costs with FNP

Offset #UBIT Costs with FNP

The 2017  Tax Cuts and Jobs created new sections of the UBIT-Unrelated Business Income Tax-U.S. Internal Review Code that diverts charitable resources from community needs. The Independent Sector reports that nonprofits are now required to pay a 21% federal tax on the cost of employee transportation benefits and to calculate unrelated income streams in a way that increases tax burden.

While nonprofits may not be able to take opt-out of #UBIT, they can still take advantage of State Unemployment Insurance (SUI) exemptions with First Nonprofit (FNP) New 2019 customers saved an average of 31% on their SUI tax costs by opting out of paying quarterly SUI taxes and enrolling into one of FNP’s unemployment programs.

In addition to SUI tax savings, FNP program benefits include:

  • Fixed annual cost for budgetary certainty
  • Multiple options for different coverage levels specific to nonprofit needs
  • Knowledgeable team of unemployment specialists
  • Expert claims representation for unemployment hearings and audits
  • Access to training and services that can decrease the number of invalid unemployment claims
  • No pooling or shared risks
  • No change for employees

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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

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