News Council calls for UI relief for self-insured nonprofits

The Providers’ Council this week joined a group of state nonprofit advocates in asking the Massachusetts Congressional  delegation to support additional federal relief for unemployment assistance.

In a June 29 letter to Massachusetts members of the U.S. Senate and House of Representatives, the group wrote: “As you know, nonprofits are on the front lines responding to the pandemic: treating those who are ill, providing food and shelter, caring for young children, the elderly, those with disabilities, and more. In addition to their role as service providers, nonprofits are an economic engine. With over 550,000 jobs, the nonprofit sector employs 18% of the Commonwealth’s workforce. As employers, they are dealing with very difficult staffing decisions while trying to maintain the critical services that will help our communities recover.”

“The economic shutdown has led to job loss for 40 million Americans and has presented a significant challenge for employers—nonprofits, local governments, and federally recognized tribes—that self-insure for unemployment insurance. Self-insured employers are those that have elected to pay the state after benefits are paid rather than contribute through quarterly taxes. This option works well under normal circumstances. Nonprofits make an actuarial decision to self-insure based on the size and stability of their workforce and regular fluctuation of economic conditions. But this crisis is unprecedented, and nonprofits are facing unimaginable financial burdens due to the layoff rate.”

Organizations signing on to the letter from the Massachusetts Nonprofit Network in addition to the Council were: Alliance of Massachusetts YMCAs, Big Brothers Big Sisters of Eastern Massachusetts, The Boston Foundation, Children’s League of Massachusetts, Massachusetts Alliance of Boys & Girls Clubs, MassCreative, Massachusetts League of Community Health Centers, Nonprofit Finance Fund, Strategies for Children, and United Way of Massachusetts Bay and Merrimack Valley.

Read the full letter here.

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