Building Philanthropy for a Better Florida

Self-Insured Nonprofits and Unemployment Insurance

Publication date: 
November, 2020
National Council of Nonprofits

Over the past week, the United States has seen an enormous spike in unemployment due to layoffs in the business and nonprofit sectors stemming from the economic ramifications of the COVID-19 crisis. This sudden growth in unemployment is hitting nonprofits both as employers (who must make difficult decisions about whether to continue to pay staff if social distancing and other public health measures make it impossible for them to perform their regular work duties) and as service providers (who must help provide for the basic needs of many Americans suddenly finding themselves or others in the family out of work). Without thoughtful policy solutions that address nonprofit-specific provisions in federal and state unemployment insurance (UI) laws, many charitable organizations and nonprofit employees could stand to lose out on new programs designed to provide protections for workers laid off due to Coronavirus without causing additional economic hardship for their employers.

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