Since 1982, the 501(c) Agencies Trust has been the nation’s leading solution for unemployment insurance for nonprofits. More than 1,200 nonprofits nationwide participate in our Trust, collectively saving over $20 million each year. On average, members reduce nonprofit HR costs by 30–60% while gaining unmatched support from our expert team.
Created by a coalition of nonprofits, the 501(c) Agencies Trust provides organizations with a safe, proven way to leave the state unemployment tax system. By joining, your nonprofit becomes a reimbursing employer—paying only for actual claims instead of a fixed state tax rate. The result: lower costs, greater financial control, and more dollars available to advance your mission.
As a member of the 501(c) Agencies Trust, you’ll receive comprehensive services that both reduce nonprofit HR costs and minimize unemployment risks. These benefits go far beyond claims management, giving your team peace of mind and valuable tools for employee success:
DID YOU KNOW?
Federal law allows 501(c)(3) nonprofits to opt out of state unemployment taxes by reimbursing the state for actual unemployment benefits paid. Through the Trust, your organization can establish a nonprofit unemployment trust reserve account—a fund that belongs to you and grows through conservative investing. Instead of sending money to the state, you gain unemployment tax alternatives for nonprofits that keep resources in your control while still protecting former employees.
A nonprofit unemployment trust helps your organization save money by replacing the unpredictable state unemployment tax with a reimbursement model. Instead of paying a fixed state tax rate that may be higher than your actual costs, you only pay for claims that are filed. Most nonprofits see 30–60% savings every year by joining a trust.
For most nonprofits, yes. State unemployment insurance often leads to overpayment because it doesn’t reflect your organization’s actual claims. A nonprofit unemployment trust gives you financial control, expert claims management, and built-in HR support—advantages that the state system simply doesn’t provide.
If your organization is a 501(c)(3) with employees, you likely qualify to participate in the Trust. Eligibility depends on a few factors like payroll size and turnover. Our team can run a free evaluation to confirm if your nonprofit qualifies and show you your potential savings.
Membership goes far beyond unemployment claims management. You’ll receive access to a dedicated claims representative, unlimited hearing support, senior HR professionals, compliance resources, re-employment tools, training for HR staff and supervisors, and hiring support. It’s a complete package of unemployment insurance for nonprofits plus HR services designed just for the nonprofit sector.
Yes – because the Trust bundles critical services that nonprofits usually have to purchase separately. By joining, organizations not only lower their unemployment costs but also gain HR compliance support, training, and risk management tools that reduce the need for costly outside consultants.
Join the thousands of nonprofits already saving with the 501(c) Agencies Trust. Contact us today to see how your organization can benefit.
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