April 16, 2014
With a large number of people depending on the assistance of local nonprofits, organizations must prepare to not only meet greater demand when disasters strike their area, but they must also protect themselves to help those in need. According to The Coloradoan, a daily newspaper in Fort Collins, the American Red Cross reports 80 percent of businesses and nonprofits that are doing well when a disaster strikes end up running out of funding within one month. However, nonprofits can prepare for any type of disaster so that a sudden change in demand or staffing does not put them in a bad situation. If there is one thing the nonprofit community has illustrated time and again, it's the ability to stay viable when times are rough.
Nonprofits should prepare for high unemployment
One cyclical type of disaster that can strike nonprofits is high unemployment insurance (UI) claims. Many nonprofits are committed to helping those impacted by loss of income, housing or money for food. However, if a nonprofit loses funding, it will eventually raise the unemployment rate at the nonprofit itself. While this can be challenging for many organizations, having the right plan in place can help ease them through the difficult time so they can successfully recover while maintaining a high level of service.
One way nonprofits can protect themselves from sudden increases in unemployment costs is to become reimbursing employers and join an unemployment insurance savings program. By making planned, quarterly payments into a fund that they own, nonprofits will have the money to meet increasing UI costs. Without these programs in place, nonprofits expose themselves to the risk of paying a high, unplanned unemployment expense. The ability to prepare for and effectively manage these costs when they arise is integral to a crisis preparedness plan.
Becoming a reimbursing employer is a great cost-saving measure for most nonprofits. However, to be done correctly, it requires the aid of nonprofit UI specialists that can manage claims and prepare organizations financially. By working with experts in the field, the nonprofit community can continue to face crises knowing that they can still deliver their services while also protecting their organizations from financial harm.
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.
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.
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.
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.