NUIRC Asks Congress to Help Non-Profits Before It Is Too Late

October 19, 2020

NUIRC Asks Congress to Help Non-Profits Before It Is Too Late


(Washington DC) The Nonprofit U.I. Relief Coalition released a statement calling on Congress to get back to work and help nonprofits around the country get back on their feet.


Citing a study from the Johns Hopkins Center for Civil Society, the NUIRC said: “Over 1.6 million people who work in the nonprofit industry lost their jobs because of the Covid-19 pandemic. 600,000 of the employees have been able to get back to work, but that still leaves one million people who are still unemployed.


“These employees work in a variety of different organizations, all of which play a significant role in making America a better place to live. Nonprofits are the third largest employer in the country, and they often do essential work in building sustainable communities. They haven’t fully recovered from mitigation efforts taken by state and local governments, and as a result, our cities, small towns, sprawling suburbs and neighbors, continue to suffer.


“There has been much talk about bringing Congress back into session to bail out the airlines. That’s all well and good, but until we take care of our local communities, we won’t really be fixing any problems.”


As Neal Denton, the Senior Vice President and Chief Government Affairs Officer of the YMCA, put it, “While charities are delivering services to vulnerable individuals and families across the nation, we’ve been hit particularly hard by the pandemic with facility closures, declines in donations, and cuts in membership and program revenue and staff reductions. Without additional relief from the Federal Government, nonprofit organizations will be forced to further reduce staff and services, leaving their communities without critical support when they need it more than ever. We urge Congress to continue negotiations and pass Coronavirus relief legislation before the elections.”


NUIRC continued, “We are especially concerned about nonprofits that have been saddled with crippling unemployment insurance (UI) costs. Many of these organizations have been hit with a double whammy. They couldn’t continue to keep their employees on the payroll because of the pandemic, and now they have to pay the UI costs of those laid-off workers, making it impossible for many of these nonprofits to hire them back.


“What has happened to the airline industry is bad. Laying off 70,000 employees is hard on those employees and hard on the American economy. And what is happening to the nonprofit industry is every bit as devastating and you can make the argument, it is even worse. Both the economic impact and the impact on these organizations’ ability to meet urgent needs are significant to our nation’s recovery.”


Daneille Clore, the CEO of the Kentucky Nonprofit Network, said, “This issue is significant for Kentucky’s nonprofits, who are an economic engine with payroll exceeding $7.5 billion in annual wages. Some organizations owe as much as $8 million in UI claims, so far. Nonprofits sympathize with all industries suffering just as we are. Ultimately, without relief, many nonprofits will be forced to close their doors. When that happens, essential services for people in need, including unemployed airline workers, will disappear.”


Jon Pratt, the Executive Director of the Minnesota Council of Nonprofits agreed, “The CARES Act was a quick and important response to the COVID pandemic, but when it came to an essential set of charitable employers it cut that relief to 50%. That unfinished business is risking the elimination of a nonprofit workforce that is already modestly compensated, 75% female, and in every U.S. community. It is time for Congress to act.”


Contact: John Feehery

(202) 577-1570

October 13, 2020

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CCSCT was approached by First NonProfit to discuss its Unemployment Savings Program and ways the program could significantly reduce the amount of unemployment taxes we were paying. At the time, our agency was paying approximately $80,000 per year. First NonProfit conducted an analysis to determine if making the switch would be in our best interest, and it clearly was based on our circumstances. The first year on the program, CCSCT saw a 70% reduction in its unemployment costs and each year, continues to experience further reductions as a result of having minimal claims. Some additional benefits of the program including having a fixed annual cost, an interest-baring reserve account, professional unemployment claims management and representation at all unemployment hearings. This has been one of the best decisions we have made.

Community Council of South Central Texas, Inc., Seguin, TX

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.

Prevent Blindness America, Chicago, IL

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.

Illinois Network of Charter Schools, Chicago, IL

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Thresholds, Chicago, IL

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New York Council of Nonprofits, Albany, NY

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