MORE THAN 35% OF NONPROFITS REIMBURSE THEIR UNEMPLOYMENT

By April 10, 2018Blog

Results of a new survey conducted by 501(c) Services indicates that at least one-third of all 501(c)(3) nonprofits with payrolls over $1 million currently reimburse their unemployment. According to the survey, 64 percent of those responding pay state unemployment insurance taxes and 36 percent reimburse the state for their unemployment claims.

“To be honest, we knew a large percentage of 501(c)(3)s with payrolls over $1 million reimburse,” said Cynthia Koral, CMO for 501(c) Services. “We’ve been helping nonprofits reimburse for more than 35 years, so we had an educated assumption of the ratio. But I’d be lying if I said we thought it would be over one third of that group. This is real good news for nonprofits.”

The goal of the survey was to better gauge how many nonprofits across the country pay state unemployment insurance taxes versus those that do not and reimburse the state for their unemployment claims. 501(c) Services polled over 20,000 501(c)(3) nonprofit executives from organizations with payrolls over $1 million.

“The results of the poll, to us, indicates that 501(c)(3)s are considering all their options and looking for ways to save as much of their budget for services as possible. We are excited to have a clearer picture of that now,” said Koral.

The reason for surveying only those organizations that have payrolls over $1 million is tied to a company philosophy.

“There are organizations that reimburse who have payrolls under $1 million,” said Koral. “But in our experience, a reimbursing nonprofit saves the most money and sees a safe amount of risk if their payroll exceeds $1 million. For the work we do and the organisations we work with, the $1 million payroll threshold seemed to be a good place to begin our research.”

The survey was conduct March 20 – 23, 2018 via email to 22,437 501(c)(3) nonprofits across the United States.


ABOUT US

501(c) Services, a 100% employee owned organization, has more than 35 years of experience in providing full-service alternatives to state-run unemployment insurance programs, and provides services to over 1,500 nonprofits nationally. We are the administrator of the 501(c) Agencies Trust, which offers a comprehensive suite of risk management services and multiple stop-loss protection solutions for its 501(c)(3) nonprofit members, and UInsure, a first dollar unemployment insurance program for 501(c)(3)s, government entities, and tribally owned businesses.

To see if your organization would financially benefit from our services, please complete a Request for Information Form today.

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