March 28, 2014
The New Hampshire House recently killed a bill that would have placed a new tax obligation on some of the state's nonprofits. While lowering the overall business tax from .75 percent to .68 percent, it would have required larger nonprofits to pay the tax for the first time, according to New Hampshire Public Radio.
Some members of the house expressed concern that the bill would place already fragile nonprofits and charities at risk. The motivation for the bill was based on the belief that some of the largest nonprofits employ many individuals and compete with companies in the private sector.
While the bill in New Hampshire failed, nonprofits across the nation have been met with increasing financial obligations to the communities that they serve as state and local governments look for ways to recover revenue lost during the recession.
The Chronicle of Philanthropy recently reported a tax plan announced to the U.S. House of Representatives would place a 25-percent surtax on nonprofits that pay more than $1 million to their employees. While the bill is predicted to be a tough sell during an election year, it still represents a changing attitude among lawmakers regarding the amount of tax that nonprofits should pay.
Organizations can still control UI costs
While nonprofits may be losing tax exemptions elsewhere, they can still save money on state unemployment insurance by becoming reimbursing employers. As a reimbursing employer, they are responsible only for the actual cost of claims submitted against their own organization, and do not need to make tax payments to state tax pools. However, organizations still need direction and a safety net when becoming reimbursers.
With unemployment savings programs, such as those offered by First Nonprofit Group, organizations can enjoy the cost savings of becoming a reimbursing employer but with less risk. Because nonprofits are still responsible for paying UI claim debt, without a savings plan UI costs could be devastating if unemployment suddenly spikes.
UI programs come with the services of experts in the nonprofit field who can ensure that claims are paid correctly and on time. They can also help organizations choose from a number of different plans, based on unemployment history, size and other factors.
For information on how your organization can cost-effectively meet its unemployment insurance needs, contact First Nonprofit Group at FNCUI@firstnonprofit.com or visit www.firstnonprofitgroup.com.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
We first started using First Nonprofit’s Unemployment Savings Program when we were a small startup nonprofit. We didn’t have an HR department and needed expertise in the event that an unemployment claim was made. We knew we were eligible to be a reimbursing employer, but weren’t sure how to navigate that process. They made it easy to set things up, plan for, and then manage claims when they came at a very reasonable cost. The amount of time and stress they’ve saved us dealing with all this has been worth way more than the cost. We’ve now grown to a large nonprofit and do have an HR department but have no plans to stop using their services. I highly recommend them to every nonprofit I come into contact with!
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.
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.
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.
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.
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.
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!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.