A surprising number of 501(c)(3) nonprofits are not aware that they are not required to pay the State Unemployment Insurance (SUI) and that they can save an average of 31% by utilizing alternatives. These savings are very significant; in the last ten years Florida Nonprofits’ members have saved over $2 million using the First Nonprofit Unemployment Savings program. Broward House joined the program in 2009 and saved $55,000 in the first year.
Goodwill South Florida has used the program for several years. The first year on the program they saved $38,000. Bridget Pallango, Senior Vice President, Human Services, answered some questions about their experiences with the program for Florida Nonprofits:
Q: What would you say to anyone considering this program?
A: From our experience at Goodwill we would encourage everyone to “at least give it a look”. We were skeptical at first, but we gave it a look, compared our financials with what could be possible and then we made the switch. We are glad that we did.
Q: How has the program affected your budgeting?
A: It has created a more stable budget in the unemployment area with fewer fluctuations.
Q: What is the greatest benefit of the program?
A: The administration of the unemployment program is very hassle free. We have saved an incredible amount of money over the years which has helped our budget immeasurably. It has also saved a lot of staff time.
Q: How has it been working with First Nonprofit?
A: It has been flawless from day one!
Q: Have you ever had a special request?
A: No, I don’t believe that we have ever had a special request because everything always runs so smoothly.
In Florida, employers pay $1.55 in SUI taxes for every $1 paid out in claims, which resulted in the Florida Department of Revenue making over $32 million in unemployment claim overpayments in FY 2019. Your organization works too hard to get donations to waste that money by overpaying. Join Goodwill South Florida, Broward House, and the over 2,100 other nonprofits saving money through First Nonprofit programs.
Contact Florida Nonprofits or attend the webinar on October 22 to learn how your organization can save.
Over the past few years, employers have enjoyed the benefit of rapidly declining unemployment insurance costs as a result of the record-setting labor market. Is your organization prepared when that trend changes direction? FNP programs provide reduced unemployment expenses, risk management, improved cash flow, and expert claim and HR advice to more than 2,100 organizations across the country. As a member of the Florida Association of Nonprofits, you can request a free, no-obligation savings evaluation from FNP and receive a 20% discount on their one-time enrollment fee. The evaluation will provide:
- An estimate of your 2020 SUI tax rate.
- A comparison of what you would pay in unemployment insurance taxes versus FNP programs.
- FNP program enrollment paperwork – FNP will handle all paperwork with the state unemployment agency when you enroll in their unemployment programs.
If FNP is unable to save your organization money, they will let you know that as well. Click here to have peace of mind knowing that your organization is efficiently financing unemployment insurance in 2020 by requesting an evaluation from FNP.
This program is a membership benefit. Contact Florida Nonprofits, Marina@FANO.org or 305.557.1764 for information or a quote.