October 21, 2013
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:
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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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.
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My experience with FNP has always been positive. Every time I have had to contact them, I’m always put in contact with a friendly and knowledgeable person. If something is missing from our account, they reach out to us to request it. It’s nice to work with a company that makes sure our account is current. I would recommend them to any nonprofit looking to reduce their unemployment insurance costs.
We’ve saved tens of thousands of dollars PER YEAR by changing to become a reimbursing employer, freeing funds for much needed capital investment. FNP has been a valued partner in this process, providing assurance that we have stopgap coverage for extraordinary claims and keeping claims response painless and simple. It’s a huge Win/Win!