Offset #UBIT Costs with FNP

July 19, 2019

Offset #UBIT Costs with FNP

Offset #UBIT Costs with FNP

The 2017  Tax Cuts and Jobs created new sections of the UBIT-Unrelated Business Income Tax-U.S. Internal Review Code that diverts charitable resources from community needs. The Independent Sector reports that nonprofits are now required to pay a 21% federal tax on the cost of employee transportation benefits and to calculate unrelated income streams in a way that increases tax burden.

While nonprofits may not be able to take opt-out of #UBIT, they can still take advantage of State Unemployment Insurance (SUI) exemptions with First Nonprofit (FNP) New 2019 customers saved an average of 31% on their SUI tax costs by opting out of paying quarterly SUI taxes and enrolling into one of FNP’s unemployment programs.

In addition to SUI tax savings, FNP program benefits include:

  • Fixed annual cost for budgetary certainty
  • Multiple options for different coverage levels specific to nonprofit needs
  • Knowledgeable team of unemployment specialists
  • Expert claims representation for unemployment hearings and audits
  • Access to training and services that can decrease the number of invalid unemployment claims
  • No pooling or shared risks
  • No change for employees

Visit our website or call us for more information:




Ready to chat?
Get in touch today to request a no-obligation savings evaluation.


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

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.

Thresholds, Chicago, IL

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY