Serving Nonprofits. Strengthening West Virginia.

Could your nonprofit be overlooking a substantial savings opportunity?

By on September 28, 2015 in News


By Cruz Mendez
First Nonprofit Group

Employers in West Virginia paid an average state unemployment tax (SUTA) cost of $216, per employee, in 2009. Since then, that cost has increased by 68% to $362! This substantial increase was caused by the most recent economic recession. The influx of unemployment claims at the start of the recession wiped out WorkForce West Virginia’s state unemployment trust fund, causing the state to increase the average SUTA cost. What do high unemployment rates, increased taxes and negative state trust fund balances mean to your nonprofit? All these statistics mean less money for your cause.

What many nonprofit organizations (and governmental entities) don’t know is that they have options when it comes to financing their unemployment obligation to their former employees. The federal government gave nonprofits an alternative to paying the high cost of SUTA: Reimbursement financing. This option allows nonprofits to pay dollar-for-dollar for only the unemployment claims issued to your former employees and redirect those tax dollars saved back into your mission. However, reimbursement financing does subject organizations to potential risks including an unexpected loss of funding that could lead to layoffs. Reimbursable employers are expected to pay back their state agency for all unemployment claims on a quarterly basis.

Nonprofits look to programs like those offered by First Nonprofit Group (FNG) to take advantage of the savings that come with reimbursement financing while minimizing risk and having budget certainty. Southern Highlands Community Mental Health Center in Princeton, West Virginia is a member of FNG’s Bonded Service Program. Since their enrollment in 2009, over $135,000 has been redirected back to their mission of providing quality mental health, addiction, and intellectual/developmental disabilities services to their community.

Southern Highlands

All FNG program members are provided with a deposit or fee that is easy to budget and is based exclusively on their own unemployment experience and employment profile. There is no shared risk or shared expenses. FNG then reimburses the state directly for any and all unemployment benefits paid to former employees throughout their membership. FNG’s performance is insured by their parent company, AmTrust Financial Services, Inc., an “A” Excellent A.M. best rated company. Other program benefits include professional unemployment claims management, representation at all unemployment hearings, and cyber protection.

Does your 501c3 organization (or governmental entity) have 10 or more employees? If so, request a free evaluation on your organization’s unemployment costs at Please note: WorkForce West Virginia imposes a December 1st deadline to participate, if your organization is currently paying SUTA. Evaluations include a free 2016 SUTA rate projection! And, if your organization is already reimbursing (self-insured), FNG will provide program evaluations that will minimize the risk associated with being a self-insured employer, provide a fixed annual cost and remove the uncertainty of your exposure.

Learn more during our October 21 Webinar on Balancing Unemployment Costs and Your Mission.


First Nonprofit Group provides 501(c)3 nonprofits and government entities with safe, cost-saving alternatives to the state unemployment insurance tax (SUTA). More than 1,500 nonprofit organizations representing all sectors of the nonprofit community in 43 states across the country rely on First Nonprofit Group to maintain and manage their unemployment insurance costs. For more information, FNP Info Sheet contact Tom Pichola at or visit


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