More than 350 Michigan nonprofits are already members of 501 Alliance. Is your nonprofit one of them?
Most employers know that they are legally obligated to fund the unemployment system. What many 501(c)3 employers and board members don’t know is that they can opt out of paying the state tax rate and instead join a group like 501 Alliance, who exclusively serves Michigan charities. There is no admin fee and 501 Alliance provides HR support in handling unemployment claims.
How can 501 Alliance not charge any admin or membership fees? Members contribute into an account with 501 Alliance, where 100% of contributions go to their future claims. The amount that each member contributes is based mainly on payroll size and charge history to ensure each account is prepared for the most likely worst case scenario without collecting more than needed. Governed by a board of directors, consisting of over 50% member agencies, 501 Alliance’s top priority is what is best for members. Operations are covered by the pooled interest from the overall fund.
Hear from a few member agencies below and encourage nonprofits you know to consider joining BEFORE THE DEADLINE of October 1 by sharing this short video.
Chiara Cameron-Wood - Executive Director, 211 Northeast Michigan
"We are a smaller nonprofit who already opted out of the state unemployment tax system and were a reimbursing employer. We joined 501 Alliance and were able to free up the surety bond we were required to have prior to joining 501 Alliance. Not only did we get those restricted funds back from our bank, we're still a reimbursing employer but now have a lower risk and more reliable budget. 501 Alliance will not change our contribution rate throughout the year, regardless of unemployment claim charges that occur."
Harry Pianko - CFO, Peckham, Inc.
"As one of the largest nonprofits in Michigan, we understand the immense value of a strong network and effective collaboration. The support from 501 Alliance has empowered us to enhance our operational efficiency, expand our impact, and better serve our community. We are proud to be a member of this network and look forward to continuing our journey together to create positive change."
Sarah Codere - Executive Director, U.P. Kids
"Joining 501 Alliance has been a game-changer for UP Kids. As a nonprofit dedicated to supporting youth and families in the Upper Peninsula, we continually seek ways to maximize our impact and manage resources efficiently. Our membership with 501 Alliance resulted in a 25% reduction in our Unemployment Rate. This substantial discount has allowed us to reinvest those savings into our programs and services, enhancing the support we provide to the children and families we serve."
Jessica Leidinger - Controller, Grand Traverse Industries
"Previously, GTI was working with another unemployment group. Unlike 501 Alliance, this group was a for-profit and was charging enormous fees. By becoming a member of 501 Alliance, we have witnessed a substantial reduction in operational costs. 501 Alliance has been extremely transparent with no hidden fees and have been incredibly helpful and easy to work with. Finding an organization that we trust to partner with has made this a very smooth and worthwhile transition."
