Are Nonprofit Employees Eligible for Unemployment?

Guest Blog Author: Cruz Mendez, PANO Member Benefit Partner First Nonprofit

Nonprofit employees may be eligible for unemployment benefits if they meet specific criteria. In most states, an individual must have worked for a certain amount of time and earned a minimum number of wages during a “base period” determined by their state’s unemployment agency to qualify for unemployment benefits.

Nonprofit organizations, including 501(c)(3) nonprofits, are subject to the same rules as other employers regarding unemployment taxes and benefits. However, 501(c)(3) nonprofits have a unique savings option for state unemployment taxes. This option, facilitated by long-time PANO partner First Nonprofit (FNP), can potentially save organizations a significant amount – up to 60% annually! FNP programs also provide essential services such as monitoring unemployment claim filings to ensure accuracy and prevent overpayment, duplication, and fraud.

And, new as of 2024, FNP can also help your organization manage tasks related to HR and compliance, in addition to unemployment through fnpaccess+. This specialized tool is designed specifically for organizations paying state unemployment taxes to PA’s Department of Labor. Join PANO and FNP on May 15, from 11:00-11:30 AM eastern for a “briefinar” all about how fnpaccess+ can help you Streamline, Simplify, and Succeed.

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This guest blog post was authored by PANO Member Benefit Partner First Nonprofit. Since 1998, they’ve helped more than 300 Pennsylvania nonprofits save over $37 million dollars! Last year alone, nonprofits saved an average of 36%. First Nonprofit offers PANO members two unemployment savings programs to help save you money on your State Unemployment Insurance (SUI) costs. Instead of paying the SUI tax, 501(c)(3) organizations can enroll into one of FNP’s programs and elect to reimburse the state for validated claims paid to former employees, dollar for dollar (save as much as 60%). PANO members receive a 20% discount on the one-time enrollment fee. Services include: unemployment claims administration, training opportunities on employer responsibilities and risk mitigation and a free cost-savings evaluation. Learn more about the PANO member benefit with First Nonprofit here, and click here to request a free, no-obligation savings evaluation on your nonprofit organization’s unemployment costs.