Great Hearts America is a nonprofit school management organization that operates a network of elementary, middle, and high schools in San Antonio, Ft. Worth, and Irving, Texas; the Phoenix, Arizona Metropolitan area; and East Baton Rouge, Louisiana, with new academies planned for Florida in Fall 2025.
Unemployment Insurance Savings:
In 2017, Great Hearts America’s unemployment tax notice showed a reserve balance of over $900,000. This amount reflected the difference between what they paid in state unemployment tax (SUTA) and the actual unemployment claims filed by former employees. However, Great Hearts didn’t own that reserve. Their state’s unemployment agency used it to calculate future tax rates, essentially tying up funds that could have been used elsewhere.
Seeking a more cost-effective approach, Great Hearts America partnered with First Nonprofit’s Bonded Service Program in January 2018. Since then, they’ve cut their unemployment costs by over 60%, achieving over $1 million in savings this year alone. This financial relief has allowed them to redirect critical resources to their educational mission.
Compliance Support:
As remote work surged during the COVID-19 pandemic, Great Hearts America faced new compliance challenges. Nonprofits with employees working across state lines are often uncertain about their unemployment liabilities. Do you need to register for unemployment if only a few staff members work in different states? What are the state requirements for registering an unemployment account?
In 2023, First Nonprofit stepped in to assist Great Hearts America in answering these questions and registering unemployment accounts in four additional states outside of their Arizona headquarters. With First Nonprofit’s continued support, Great Hearts plans to register 15 more state accounts in 2024, ensuring compliance without the administrative burden.
Note: This content has been paid for by First Nonprofit (FNP).
FNP provides state-compliant, individually insured, cost-saving options to satisfy SUI requirements for 501(c)(3) nonprofit, governmental, and tribal entities. We have been the nationwide leader in providing the greatest variety, most unique, and enduring programs for managing state unemployment reimbursing risk for nearly three decades.
First Nonprofit (FNP) can save nonprofit employers as much as 60% annually! Contact FNP to help determine eligibility for the best reimbursement option for your organization. Click here to request a free, no-obligation savings evaluation.
