May 1, 2013
During the recession, many nonprofit and government organizations were faced with the need to let staff members go to make ends meet financially. As the economy picks up, these entities are regaining their footing, and many are looking to make wiser choices when it comes to paying off costs associated with unemployment requirements, such as fees associated with taxes.
Something these organizations should be aware of is the high prevalence of insurance fraud, which recently proved to be a major problem for several counties in New York.
Last year, the New York Department of Labor worked with the state district attorney's offices to prosecute phony unemployment insurance claims and returned nearly $2 million to the unemployment insurance trust fund.
Counties throughout New York received major unemployment insurance fraud returns this week. Orange County saw the largest amount, as it was given roughly $178,000. Queens County saw the second largest payout, worth almost $153,600, and Monroe County came in third with a little more than $134,700, according to Rochester Business Journal.
Governor Andrew Cuomo called unemployment insurance fraud an necessary cost-driver for honest employers that puts the benefits of legitimate claim-filers at risk.
"Such criminal activity should be prosecuted to the fullest extent of the law, and I applaud our local partners who pursue these cases for their vital help in returning these stolen funds back to the Unemployment Insurance Trust Fund," Cuomo said.
Monroe County District Attorney Sandra Doorley added that these cases often get overlooked in a world where violent crime receives most of the media attention.
Fraudulent unemployment insurance claims are a major burden on local governments involved. While the New York counties received payment returns, these crimes are time- and resource-consuming for organization leadership.
Working with an insurance provider that can tailor to an entity's specific needs can help nonprofit managers rest easy.
In addition to their money-saving purpose on behalf of nonprofit organizations like AHS, First Nonprofit’s Nonprofit Unemployment Fund streamlines the information we need to efficiently manage unemployment claims. Our relationship with NU Fund gave us access to such things as advice on planning for what’s ahead and how to analyze cost scenarios when unexpected events occurred. Both experiences were very helpful.
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.
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.
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.
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
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.