Unemployment and Self-Insured Nonprofits: Ending the Pressure to Lay Off More Employees

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Virtual Briefing

Wednesday, July 15
2:00–2:45 pm Eastern / 11:00-11:45 am Pacific

Did you know that 37 states are sending invoices to thousands of charitable nonprofits demanding reimbursement of the unemployment compensation paid to their employees laid off or furloughed due to COVID-19? Unlike most for-profit employers, nonprofits that self-insure under the federal and state unemployment system must pay the costs caused by this pandemic immediately. A recent survey of about 400 nonprofits identified more than $20 million in costs that those nonprofits will be forced to divert from their missions to pay the states in just this month alone. This means that nonprofits that already had to reduce staffs will have to lay off even more employees just to have the resources to pay unemployment compensation bills to their states. It’s the public that suffers from this spiraling down of jobs and services.

Join a special briefing on the impact of unemployment costs on self-insured nonprofits and the urgent need for policy reforms. Speakers from around the country will share the experiences of their organizations struggling to retain staff and maintain operations in the face of the pandemic. They will talk about the likely impact that burdensome unemployment bills will have on their ability to address immediate needs in their communities.

The recent passage by the Senate and House of S. 4209, the Protecting Nonprofits from Catastrophic Cash Flow Strain Act, only addressed part of the challenge that these nonprofits face. More must be done immediately to ensure nonprofits can stay focused on advancing their missions and not have to lay off more staff to pay unemployment costs.

Please register for this briefing by Tuesday, July 14.

For more information or if you have any questions, please contact: Tiffany Gourley Carter, tcarter@councilofnonprofits.org.

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