Insurance agents: Save nonprofit clients up to 40 percent on state UI costs

April 23, 2014

Insurance agents: Save nonprofit clients up to 40 percent on state UI costs

Insurance agents who want to help their nonprofit clients save money and protect them financially from increasing unemployment insurance costs can assist these organizations in opting out of state unemployment insurance (UI) tax pools. 501c3 nonprofit organizations and governmental agencies have the option to self-insure and not pay via the tax method that all for-profit companies follow. This self-insurance designation, called reimbursing, allows nonprofits to avoid the volatility and price increases associated with state UI tax pools.

First Nonprofit Group provides alternative funding and risk management programs for nonprofits that maximize the savings of being a reimbursing employer while also mitigating the risk and difficulty of self-insuring. Organizations across the country have saved as much as 40 percent on their annual UI costs with savings programs from First Nonprofit Group.

Their cost-saving solutions are available to organizations with at least 10 employees and located in all 50 states. Any governmental employers and all 501(c)(3) organizations are eligible. First Nonprofit Group currently has more than 1,600 organizations in its various programs, covering more than 300,000 employees.

All nonprofits benefit from alternative measures for UI funding
Regardless of the size or mission of a nonprofit, opting out of state UI pools provides a significant reduction in UI costs. First Nonprofit Group has offered savings to a wide variety of organizations across the country. Below are a few examples of members in First Nonprofit Group's programs and their savings.

  • A housing services organization with 64 employees reduced its UI costs with First Nonprofit Group from $21,766 annually to $9,981, a savings of nearly $12,000.
  • A child services organization with 333 employees made annual contributions of $88,824 to state tax pools. The organization's annual cost dropped to $54,700 with membership in a First Nonprofit Group plan, saving more than $34,000.
  • Joining a First Nonprofit Group program saved an educational services organization with 172 employees almost 50 percent on its UI costs. Instead of annual state tax payments of $199,728, the organization is now saving nearly $95,000 with a total annual payment of $105,000.

Nonprofit organizations change over time, as do their needs, that's why there are four options that insurance agents can help nonprofit clients choose from: a Bonded Service Program, an Unemployment Savings Program, Excess Loss Insurance and Surety Bonds. Unlike the State Unemployment Tax Fund, agents are eligible to receive commission for products. 

For information on how your nonprofit clients can cost-effectively meet their unemployment insurance needs, contact First Nonprofit Group at FNCUI@firstnonprofit.com or visit www.firstnonprofitgroup.com.

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Testimonials

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.

Visually Impaired Preschool Services, Louisville, KY

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.

Ensight Skills Center, Inc, Fort Collins, CO

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.

Asian Health Services, Oakland, CA

We have had a great experience with FNP. During Covid, when there was the chance that reimbursable nonprofits would have to pay 50% of the unemployment costs, FNP went to bat for us. We would receive weekly information on the Unemployment claim and how they were working to reduce the costs to reimbursable nonprofits. They have a great service also working with [our claims administrator] to make sure all the paperwork is completed correctly for any unemployment claim.

ACLA Libraries, Pittsburgh, PA

PORT Health Services has had a great experience with the Unemployment Savings Program offered through First Nonprofit. Throughout the years we have been involved in the program, we have increased our reserve account significantly through this program and find the reporting we receive both timely and useful. We look forward to our continued involvement with this program and our connection with First Nonprofit for many years to come.

PORT Health Services, Greenville, NC

Job One was spending a lot of money on unemployment. Our insurance broker, Mark Simcosky, recommended that we switch over to First Nonprofit. We did just that! This switch has been a huge savings for us! This switch saved us over $10,000 in the first year. Their customer service is Superior! Any time we have a question, we get a response very quickly. Any time we send them a report and they have a question; they call rather than just assuming. They were very responsive during COVID, even when they were in crisis mode their selves. They also were always there when we needed during COVID and very helpful! We would 1,000% recommend First Nonprofit to anybody that could benefit from it!

Job One, Independence, MO

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.

Family Counseling Center, Gloversville, NY

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!

NC UM Camp & Retreat Center, Garner, NC