Many 501(c)(3) nonprofits elect to reimburse the state for the cost of their employees’ unemployment claims rather than pay state unemployment tax. The CARES Act provides funding to cover half of the costs of these nonprofits’ COVID-19 related unemployment claims, but still leaves these organizations with significant financial liability. Without assistance in covering the costs of these unemployment claims, many nonprofits that provide health care, food assistance, affordable housing, childcare, and other critical services will have to end or curtail services later this year. Learn more about self-insured nonprofits and unemployment insurance here.
In Vermont, we are working with state legislators and the Department of Labor to assess the situation and prevent further economic harm to these nonprofits.
Has your organization elected to self-insure under Vermont’s unemployment compensation system? Is your organization now facing burdensome payments to the state due to coronavirus-related layoffs and furloughs?
1. Take the National UI Survey for Self-Insured Nonprofits and Tribal Groups
Nationally, Common Good Vermont is working with a coalition of organizations to collect data on the impacts self-insured nonprofits are facing with states. This survey asks self-insured nonprofits facing burdensome unemployment payments to their states to share their experiences. If your organization is one of the self-insured nonprofits or tribal entities that uses this system, please take this survey! The responses will help our network advocate for relief from crippling unemployment costs. The survey is CONFIDENTIAL and will greatly aid our ability to get this issue resolved in future legislation.
2. Tell Your Story
Are you a self-insured nonprofit? Share your story with Common Good Vermont by emailing firstname.lastname@example.org. State legislators can prevent further economic harm to self-insured nonprofits either by covering the other half of the costs of their COVID-19 related unemployment claims or by giving them more time to reimburse the state. Share your story to help advocate for legislative action.
3. Participate in the Vermont Nonprofit Wages & Benefits Survey this June TBA
Every 2 years Common Good Vermont teams up with NH Center for Nonprofits and Maine Association of Nonprofits to collect the latest data on wages and benefits from our tri-state area. This year, we have added in-depth questions on the impact of COVID-19. Each state produces a state-specific report on Wages and Benefits this fall based on the data collected in this survey. The 2020 Vermont Survey coming soon. Purchase the 2018 report here.