Filing unemployment tax returns can often be a time-consuming and expensive endeavor, leaving many nonprofit organizations stretched thin. UST provides nonprofits with an alternative approach that not only saves significant time but also reduces unemployment costs—by up to 60%.
Learn how UST Trust empowers nonprofit organizations to take control of their unemployment claims, lower expenses, and streamline workforce management.
Why UST Trust is a Game-Changer for Nonprofits
Nonprofits face unique challenges compared to for-profit businesses, especially when managing unemployment expenses. Many nonprofit organizations pay state unemployment taxes based on a preset rate, which often surpasses their actual unemployment costs. UST Trust enables nonprofits to opt out of the traditional state tax system and instead reimburse the state only for actual unemployment claims, dollar for dollar, yielding substantial savings. Here are some standout ways UST helps nonprofits save time and money:
1. Significant Cost Savings—Up to 60%: One of the biggest advantages of partnering with UST is the immediate and long-term financial savings. By joining the trust, your nonprofit becomes a reimbursing employer and can save up to 60% in the first two years compared to paying state unemployment taxes. Unlike standard tax payments, where funds are directed to the government without a clear return, contributions to the UST Trust accumulate in a reserve account. This account is owned by the nonprofit, turning those dollars into a tangible financial asset. Whether you’re a small nonprofit with a handful of employees or a larger organization, the cost benefits of UST make this program an essential asset for budget-conscious organizations.
2. Expert Claims Management for Better Efficiency: Managing unemployment claims can be complex and time-consuming, especially if you’re tasked with auditing charges or disputing inaccurate claims. With UST’s expert claims management, nonprofits can focus on their mission while letting the professionals handle the technical details.
UST offers:
These services ensure nonprofits pay only for legitimate claims, reducing the risk of overpayments and saving additional money.
3. Comprehensive Workforce Solutions: Beyond unemployment cost management, UST provides a range of tools to help nonprofits address broader workforce challenges. Their service offering includes:
This well-rounded support system helps nonprofits not only minimize unemployment expenses but also strengthen their workforce management, adding value at every level.
Key Benefits of Working with UST Trust
UST Trust offers a breadth of services and features that make it a reliable and effective partner for nonprofits. Here’s what you can expect as part of your UST Trust membership:
1. Dedicated Account Management: Each UST member benefits from having a designated account manager who provides personalized support. From quarterly financial statements to prompt assistance with urgent issues, UST ensures you always have someone in your corner.
“Raquel is terrific to work with. She provides excellent customer service and support for our organization. She is very responsive and knowledgeable, and I enjoy working with her.” – feedback from a UST Member
2. Stop-Loss Protection for Stability: Unexpected spikes in unemployment claims can severely disrupt a nonprofit’s finances. UST offers stop-loss protection to shield your organization from the unpredictable, providing financial security when it’s needed the most.
3. Cash-Back Refunds: Every year, UST reviews its members’ accounts to optimize fund usage. Any excess reserves remaining in your account can be refunded or retained for future security and asset growth. This proactive approach reinforces your nonprofit’s financial stability over time.
4. Low Administrative Costs: UST proudly offers the lowest administrative costs of any unemployment trust nationwide. This focus on minimizing overhead ensures that the maximum amount of your contributions goes toward supporting your organization’s goals—not administrative fees.
5. Surety Bonds at No Extra Cost: To meet state requirements, nonprofit organizations need collateral in the form of a surety bond. UST provides this bond at no additional charge, giving you one less expense to worry about.
How UST Helps Nonprofits Plan for the Future
Cost-saving strategies are essential for nonprofits to maintain their mission-driven work. UST Trust offers meticulous actuarial planning, forecasting potential unemployment claims and structuring reserve contributions accordingly. This ensures that nonprofits are prepared for future expenses without overcommitting their budgets. Additionally, funds in your UST Reserve Account are conservatively invested, allowing your organization to grow its assets over time.
For nonprofits already functioning as reimbursing employers, UST offers enhanced claims management services and cash flow tools to further optimize your unemployment cost strategy.
Is UST Trust Right for Your Nonprofit?
Thousands of 501(c)(3) nonprofit organizations across diverse sectors have already switched to UST Trust to simplify their unemployment tax filings and maximize savings.
To determine whether your organization could benefit from UST, start with a Free Savings Analysis. By analyzing your unemployment claim history, tax rate information, and workforce data, UST can provide a two-year savings projection and establish a quarterly deposit plan tailored to your needs.
Act Now and Save with UST Trust
Filing unemployment tax returns doesn’t have to be a drain on your nonprofit’s time and resources. With UST, you’ll gain access to expert claims management, unparalleled cost savings, and value-added workforce solutions designed to set your organization up for long-term success.
Take the Next Step:
If you’re ready to save thousands while reducing the headaches of managing unemployment tax filings, it’s time to connect with UST. Visit www.chooseust.org/savings/ or call (888)-249-4788 to get your Free Savings Analysis today. Don’t leave your potential savings on the table—partner with UST Trust and streamline your way to greater financial stability.
What’s one of the best ways to bring your nonprofit’s mission to life? A well-planned event.
Events can stand as a real-life demonstration of the critical difference your organization makes within your community. Plus, they can be an unparalleled way to generate excitement and inspiration among your staff, volunteers, supporters, and sponsors. In fact, 56% of donors say they regularly attend fundraising events and view them as a positive way to support the causes they believe in.
What’s the downside? Events aren’t always easy to execute successfully.
Too often, nonprofit staff members find themselves tasked with throwing a big event – in addition to all the other responsibilities they regularly juggle. But you can increase your chances of success by guiding team members through a deliberate planning process.
6 Months – 4 Months before Event: Building the Framework
Big events can be a lot of work. Months of planning and preparation go into an event that’s quickly over in a day or a weekend. But the effort invested in the time leading up to your event will have a significant impact on its ultimate success.
If it’s the first time your organization has staged this type of event, consider reaching out to other community groups who may have sponsored similar events. You might also want to contact local vendors to get multiple estimates to get a baseline view of current costs.
4 Months – 2 Months before Event: Ironing Out the Details
As the date of your event draws closer, you’ll begin nailing down financial details and setting your communications strategy. Getting a firm handle on your costs at this point can be important in developing the types of promotional activities your organization may be able to afford.
Determine if your event budget can include costs for advertising in traditional media such as newspapers and radio. You can also work with local media to generate publicity through on-air interviews or articles.
Don’t forget tools such as email, social media and online event calendars. Emails sent to your organization’s members, volunteers and other contacts can be an effective way to build enthusiasm for your event. Posting event notices through social media such as Facebook and Instagram can be another tool that stretches your promotional budget farther. Be sure to submit your event to online event calendars to catch the eye of community members who may be looking for activities within a certain timeframe.
Are you looking for more information on building a communications strategy? Take a closer look at “5 Steps to Create an Effective Nonprofit Communications Strategy” in this blog post for UST members.
When developing the website, make sure the web designer understands the goal and traffic expectations of the site. For instance, if you plan to sell tickets via the website, the designer needs to build that process into the site – including setting up a secure online purchase experience.
Additionally, it’s critical that the website is mobile-optimized. Studies show that approximately 60% of web traffic is viewed on phones.
2 Months – 2 Weeks before Event: Getting Ready to Host Your Event
As the date of your event draws closer, your event planning will become more specific. You’ll focus on telling community members about the event, lining up volunteers to help everything run smoothly and renting equipment you may need for the big day.
Once you’ve deployed these communication pieces, don’t hesitate to reach out to local media personalities your group may have worked with in the past. Their previous interviews or stories may be an idea starting point, and your personal contact could help draw more attention to the media packet.
Week of Event: Putting the Finishing Touches on Last Minute Details
The last few days before your event are the time to “dot your ‘i’s and cross your ‘t’s.” Attention to details will be a top priority.
Day of the Event: Breathe and Enjoy
After months of planning, your event vision is coming to life. While unexpected issues invariably arise, your weeks of planning have most likely kept them to a minimum. Focus on embracing your organization’s mission and making the most of your event.
1 Week – 2 Weeks after Event: Evaluate How Everything Went
Your reflections on the event can help provide your nonprofit with a solid base as it considers future events. Documenting the steps your team took, the timeline they used and other details can be an invaluable tool.
If you’d like more details on how UST helps nonprofit organizations plan for and budget events, claim your 60-day free trial of HR Workplace powered by Mineral. You’ll get full access to a wide range of templates and guides designed to help your nonprofit support your mission through successful events.
SOURCES:
“The Importance of Nonprofit Event Planning”, Charitybids.com, viewed 7/2/25
https://www.charitybids.com/blog/nonprofit-event-planning#why
“The Ultimate Event Planning Checklist,” Eventbrite, downloaded 6/30/25
The Ultimate Event Planning Checklist | Eventbrite
“Nonprofit Event Management: Checklist and Tips for Success,” Kindful.com, viewed 6/30/25
https://kindful.com/nonprofit-glossary/nonprofit-event-management/
For nonprofit leaders, the work is more than just a job—it’s a calling driven by purpose and passion. While deeply rewarding, this mission-oriented role comes with its own set of challenges. Balancing limited resources, supporting dedicated yet often overstretched teams, and navigating the complexities of social impact work can take a toll. Amid these pressures, self-care and wellness are often deprioritized, leaving leaders drained and overwhelmed.
But here’s the truth: prioritizing wellness isn’t just about self-preservation—it’s essential for organizational success. A healthy, thriving leader sets the foundation for a resilient, high-performing team. This guide outlines practical strategies to help nonprofit professionals manage their well-being while advancing their mission.
The Challenges of Leading a Nonprofit
Nonprofit leadership is a balancing act, requiring leaders to juggle multiple responsibilities daily. Here are some of the most common challenges nonprofit leaders face:
In this landscape, wellness practices aren’t a luxury—they’re a necessity.
Strategies for Nonprofit Leaders to Prioritize Wellness
Every nonprofit leader deserves the tools and support needed to protect their well-being without compromising their mission. Here’s how you can integrate wellness into your leadership approach:
1. Set and Protect Boundaries: In leadership, endless demands can consume your time and energy. Establishing boundaries is critical to prevent burnout.
Small, consistent boundary-setting practices—like logging off email by a certain time—can have a big impact over time.
2. Delegate and Empower Others: The temptation to take on everything yourself can be overwhelming, but delegation is a powerful tool for reducing stress and building a stronger team.
Delegation not only reduces your stress but also strengthens your organization by encouraging team development.
3. Foster a Culture of Wellness: The tone of workplace culture starts with leadership. By prioritizing wellness for your team (and yourself), you create an environment that supports both personal and organizational success.
A culture of wellness not only supports your team—it ensures you’re not carrying the burden alone.
4. Leverage Tools and Resources: Leading a nonprofit is challenging, but the right tools can ease the workload and streamline operations.
The right tools can help free you up to do what you do best, lead your mission forward.
5. Prioritize Your Physical and Mental Health: You can’t give your best to your organization if you’re running on empty. Taking care of your physical and mental health is key to showing up as an effective leader.
By prioritizing your own well-being, you model the importance of self-care for your team.
Leading with Wellness for Sustainable Impact
Nonprofit leaders are driven by a desire to care for others—their teams, their organizations, and the communities they serve. Yet, it’s vital to remember that self-care is not selfish. In fact, it’s what allows leaders to sustain their efforts for the long haul.
By creating boundaries, delegating effectively, fostering a culture of wellness, and using the right tools, you can protect your well-being while continuing to make a meaningful impact.
Start Supporting Wellness in Your Workplace
Managing HR responsibilities is essential but time-consuming. UST HR Workplace offers a cloud-based platform with HR tools, templates, and training tailored specifically for nonprofits.
Take advantage of our free 60-day trial to simplify your HR processes and create a thriving workplace culture.
Your team and your mission depend on you—and that starts with taking care of yourself.
One of the best ways to build a loyal and emotionally engaged team is by investing in each person’s growth and development. In fact, a recent Gallup study reported that 87% of millennials rank “career growth and development potential” as an important factor when choosing a new job.
You might assume that nonprofit groups would have a tough time competing in this landscape – particularly based on tight budgets and limited resources. But that assumption is often wrong.
In fact, nonprofits are uniquely situated to provide exceptional opportunities for employee growth and ongoing development. That’s because these groups have the advantage of passionate and committed team members who see their work through the lens of helping to make the world a better place.
Turning Team Member Strengths into Growth Opportunities
Each team member and volunteer within your organization brings unique skills and talents.
Many successful nonprofits use these diverse strengths to develop ongoing development opportunities for team members.
You might consider pairing a new employee with an established volunteer on an informal mentorship basis. It can be a great way for the new employee to learn the background of a large project within your organization. At the same time, the more experienced volunteer may benefit from a new viewpoint that looks at a challenge from a different angle.
Cost-effective Ways to Help Improve Skills
Giving team members ongoing access to training or resources to help build their professional skills can bring double rewards. First, it can help them become even more effective in their current role. At the same time, it can also be a smart way to prepare them for future career goals. You can find affordable training solutions from many sources.
Local and online training: Hands-on training on a wide range of topics is often available through your local library or community college. In addition, many online training options such as Coursera, LinkedIn Learning, and Udemy offer inexpensive training modules which can lead to professional certifications. These certifications can be valuable for team members who may be looking to advance their careers.
Learning opportunities at conferences: Sending team members to conferences can also be an effective way to promote a culture of continuous learning. Whether it’s focused on an issue within your nonprofit’s mission, a gathering of affiliated nonprofits or even an event focused on your employee’s individual profession, conferences can provide important opportunities to meet new colleagues and learn how other organizations are handling today’s challenges.
Free training option: Your nonprofit can also take advantage of more than 300 on-demand training courses available online through the HR Workplace offered through UST. This complimentary option is powered by Mineral and includes 60 days of free access (UST trust members have ongoing access). It can be an easy way to set up employee training on project management, workplace safety, and other professional development topics.
Develop Career Paths to Help Team Members Grow Within Your Organization
Many employees look for advancement pathways as they progress through their careers. In addition to fostering growth, this can also be a critical retention tool within your organization.
Consider setting up a ladder of growth goals for team members to work through as they gain experience with your nonprofit. Ideally, this pathway would include ongoing training which was then integrated into successively higher levels of job responsibility.
The career paths within your nonprofit can be an exceptional way to grow your own future leaders. Rather than bringing in new leadership who may not have a firm understanding of your group’s challenges or mission, moving tomorrow’s potential leaders through your nonprofit’s career paths could help ensure continuity of purpose for the future.
Building a culture of continuous learning is an effective way to position your nonprofit as an attractive employer within your community. It’s a smart strategy to reward team members for their dedication and passion to your nonprofit’s mission – without breaking your budget.
Would your organization be interested in freeing up more money in your budget to invest in a culture of continuous learning? Consider talking to UST to learn how thousands of nonprofits saved a total of $56.4 million in 2022 alone. Their innovative unemployment solution can help you uncover hidden savings to help your group better meet its goals and support your team members.
SOURCES:
“7 Ways Nonprofits Can Increase Employee Engagement”, eletive.com, 5/10/24
https://eletive.com/blog/7-ways-nonprofits-can-increase-employee-engagement
“The Benefits of Employee Engagement,” Gallup, updated 1/7/23
https://www.gallup.com/workplace/236927/millennials-jobs-development-opportunities.aspx
“Nonprofit Basics: Employee Engagement Ideas,” Double the Donation, viewed 6/6/25
People First Strategies for Nonprofits
Nonprofit organizations are the backbone of our communities, tackling social, environmental, and cultural challenges with mission-driven passion. Yet, behind every nonprofit’s success is its team of dedicated employees and volunteers, whose commitment fuels the organization’s ability to make a lasting impact.
However, the nonprofit sector grapples with distinct hurdles in attracting, supporting, and retaining top talent. Constrained budgets, emotionally taxing work, and fierce competition with for-profit opportunities make managing a nonprofit workforce complex.
That’s precisely why UST has released its free eBook, “People First Strategies for Retaining and Supporting Nonprofit Employees.” This essential resource is designed to empower nonprofit leaders to confront these challenges directly. Here’s a sneak peek into how this eBook provides actionable insights to transform your nonprofit’s workforce strategy and amplify your impact.
Why People First Matters
Nonprofits directly impact millions of lives. Employing over 12 million workers in the U.S. alone, the sector accounts for over 10% of the workforce. Whether running community programs, advocating for change, or delivering vital services, your employees and volunteers are the lifeblood of your mission.
Nevertheless, the nonprofit workforce is not without its struggles. Leaders face high turnover rates, burnout, and difficulty attracting skilled professionals. These challenges can disrupt your operations and hinder your nonprofit’s ability to fulfill its mission. Adopting a people-first approach helps improve retention, foster engagement, and build a resilient workforce that is ready to tackle societal challenges.
What Is Inside the Free People First eBook?
The eBook is a comprehensive guide with insights that empower nonprofit leaders to integrate people-first strategies into their operations. It focuses on three primary areas that can help shape a thriving and supportive workforce within your nonprofit:
1. Recruitment Strategies
The eBook highlights approaches tailored to nonprofits, such as emphasizing your mission’s impact during recruitment to attract passionate professionals. It also covers ways to overcome budgetary constraints, including leveraging networks and offering flexible work arrangements, such as remote work and mental health days, to meet candidates’ needs.
2. Employee Retention
Retaining talent is vital to maintaining nonprofit stability. The eBook outlines actionable strategies, including creating clear career progression pathways, celebrating employee achievements, and fostering a positive organizational culture. These initiatives ensure your workforce feels valued, engaged, and connected to your mission.
3. Mental Health and Wellbeing Support
Nonprofit employees often operate in emotionally demanding environments, making mental health support an indispensable part of workforce management. The eBook details tools like Employee Assistance Programs (EAPs), wellness initiatives, and fostering open communication to help prevent burnout and promote overall wellbeing.
Why Downloading This eBook Is Essential for Nonprofits
By downloading “People First Strategies for Retaining and Supporting Nonprofit Employees,” you will gain practical tools and frameworks to address challenges like recruitment bottlenecks, skill shortages, and employee burnout. With these strategies, nonprofits can promote their mission while supporting their teams effectively.
Key Takeaways From the eBook
Rooted in decades of serving nonprofit employers, this resource offers expert advice to help you align your people’s strategy with your mission.
Get the Free Guide
Support your nonprofit workforce with actionable strategies tailored to the sector’s unique needs. By putting your people first, you create a sustainable path to achieving your mission and ultimately amplify your impact.
Download UST’s free People First eBook today and take the next step in empowering your team for long-term success.
Together, we can build a brighter future for the communities you serve.
Use These Strategies to Help Your Team Prioritize Mental Health
As staff members and volunteers work toward furthering a nonprofit’s mission, they may find themselves shouldering a heavy emotional load. Many times, they’re the ones on the front lines – serving your target audience and witnessing on a first-hand basis the genuine need and impact your nonprofit can have.
It’s natural to consider ways your organization can better support the mental health of staff members and volunteers after a big event leaves the entire team drained. Maybe your group makes it a priority to build mental health support reminders into annual review discussions to help encourage staff to take advantage of benefit options such as an Employee Assistance Plan (EAP).
Working with UST can be a smart way to cut the cost of mental health and wellness benefits for your organization. Take a look at this case study where a client used the savings they got through UST to help fund these types of benefits for their staff.
But the most successful nonprofits prioritize the mental health of each team member on a daily and weekly basis to help foster an environment that more consistently supports balance and emotional well-being – to help avoid pushing staff and volunteers to the point of burnout.
Give The Gift of Time
While budgets are often notoriously tight in the nonprofit world, helping your employees make the most of their time can also be easy on your organization’s bottom line.
Emphasize “Life-Work” Balance
With the emotional demands of nonprofit work, you can help employees prioritize their own mental health by creating a culture which encourages them to fill their own cups first. Staff and volunteers need to feel that they can confidently meet their own family and personal needs before they can dedicate themselves to your nonprofit’s mission.
Encouraging Words and Listening Ears
You may not remember the raise you got a few years ago. But if you’re like most people, the compliment given by a mentor still carries meaning – even if it happened long ago. Your employees are no different.
Lead By Example
Even with the most generous package of mental health benefits, it’s important for your team to see leaders prioritizing their own personal well-being before staff will be comfortable doing the same for themselves.
Openly discussing your own self-care strategies and mental health challenges can normalize these types of conversations so that team members will be more likely to take advantage of mental health benefits when they need them.
If you’re looking for more ideas on helping your staff and volunteers prioritize their mental health, consider taking advantage of the HR Workplace offered through UST. This complimentary resource is powered by Mineral and includes 60 days of free access. You can ask specific questions about a mental health situation within your organization and an expert will get back to you with answers to help you solve the challenge.
SOURCES:
“5 Ways Nonprofits Can Offer Competitive Benefits on a Tight Budget”, guhroo.co, 2/12/25
“How Nonprofit Teams Can Prioritize Mental Health And Prevent Burnout,” Forbes Nonprofit Council, 9/10/24
“The Intersection of Leadership and Mental Health: Best Practices,” Belinda Winter, 10/15/24
Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month is a time to honor the rich histories, cultures, and contributions of the AANHPI community. For nonprofits, it’s also an opportunity to amplify diverse voices, build stronger coalitions, and drive meaningful community impact together.
This month is more than recognition; it’s a call to action. It’s about creating spaces where voices from the AANHPI community can thrive, stories can be shared, and organizations can unite in advancing equity and inclusion. For nonprofits and community leaders, this work starts with strong collaboration, impactful resources, and inclusive workplaces.
The Role of Nonprofits in Supporting AANHPI Communities
Nonprofit organizations play a vital role in advancing the well-being of underrepresented communities. With AANHPI communities experiencing barriers such as access to healthcare, education inequality, and workplace discrimination, nonprofits can act as a bridge for support and advocacy. Here’s how nonprofits can make a tangible impact during AANHPI Heritage Month and beyond:
By taking these steps, nonprofits can ensure that their work uplifts and supports the communities they aim to serve.
Join the Movement for Meaningful Impact
This AANHPI Heritage Month, let’s not only celebrate the cultural richness and resilience of AANHPI communities but also take actionable steps to create a more inclusive and equitable environment for all.
Start building a stronger foundation for your nonprofit’s mission today. Take advantage of UST HR Workplace with a FREE 60-Day Trial to access the essential tools you need to support your workplace while driving meaningful impact.
UST HR Workplace is a cloud-based platform designed specifically for nonprofit employers aiming to foster a safe, compliant, and productive work environment. By signing up for our 60-day trial, you’ll access valuable resources that simplify managing your nonprofit. These include live certified HR experts ready to answer pressing questions, over 300 employee training courses for professional development, and thousands of downloadable forms and checklists for everyday HR operations. Additionally, you’ll find an online employee handbook builder and job description tools to attract top talent.
Sign up for your free trial now
Together, we can create lasting change that honors the principles of diversity and inclusion across all the communities we serve.
When people think about nonprofit organizations, they might believe that a group’s tax-exempt status means the organization doesn’t need to worry about taxes or the IRS. That misconception couldn’t be farther from the truth!
In fact, the federal government requires annual documentation from nonprofits (other than churches or certain church-related groups) to show how they’re working toward their mission and to confirm they’re following regulations established for tax-exempt entities. IRS Form 990 provides the framework for this annual reporting.
What’s included in Form 990?
Form 990 basically serves as a public report card on your organization. It details information such as:
Prospective donors often review a nonprofit’s Form 990 filings to get an idea of how the group is working toward their goals and to get a snapshot of the organization’s financial health. (If expenses such as unemployment claims or state unemployment premiums are negatively impacting your nonprofit, you can talk to UST about alternative solutions which can help significantly cut these types of expenses. It could be a smart way to demonstrate your group’s dedication to year-over-year fiscal improvement for your next 990 filing.)
Which version of Form 990 does my nonprofit need to complete?
Your organization’s annual revenue determines which version of Form 990 must be filed each year:
Form 990 is commonly supplemented by Schedules. While there are 16 Schedule options associated with Form 990, most organizations are only required to complete a few. Smaller groups may not need to submit any Schedules. If your nonprofit participates in the activity covered by a certain Schedule, it must be filed along with your 990.
Once Form 990 is filed with the IRS, does a nonprofit need to worry about state filing requirements as well?
There’s no “one size fits all” answer for this question. Nonprofit filing requirements vary by state. The IRS website includes a quick reference of state-by-state information for tax-exempt organizations.
Are there deadlines for filing Form 990?
Form 990 is due each year by the 15th day of the 5th month after the end of a nonprofit’s fiscal year. If your organization is running behind on this paperwork, you can file IRS Form 8868 to request a six-month extension.
Smaller nonprofits who use Form 990-N are not eligible for extensions but there are currently no penalties for late filing for these groups.
What happens if a nonprofit doesn’t meet their Form 990 deadline?
Meeting Form 990 deadlines is critical for tax-exempt organizations. If Form 990 is filed late, the IRS has the right to assess financial penalties. If your nonprofit’s gross revenues are less than $1,208,500, the fee is $20 per day up to a maximum $12,000 fine. If your group’s revenues are higher than $1,208,500, the fee jumps up to $120 a day with a maximum fine of $60,000.
While those fines can add up quickly, there’s an even more significant penalty for groups that fail to file Form 990 for three consecutive tax years. Nonprofits who fall into that situation automatically lose their tax-exempt status. As a result:
What are some of the most common errors that lead the IRS to reject Form 990 submissions?
The IRS can return your Form 990 filing or even reject it due to errors or missing information. They recommend reviewing the following aspects of your organization’s 990 filing to avoid this situation:
With the significant potential penalties surrounding Form 990, most nonprofits take filing this key documentation extremely seriously. Experts recommend working with your board of directors and a tax professional to help make sure your organization stays in compliance with these important regulations.
As your nonprofit gears up for the upcoming 990 filing, consider adding a strategic approach to reducing unemployment costs to your documentation. UST has assisted over 2,200 nonprofit organizations in minimizing financial exposure to unemployment claims. The savings from working with UST have enabled many organizations to fund staff merit increases, offset rising health insurance premiums, or cover expenses like wellness benefits. See how much you could save by becoming a reimbursing employer with UST by clicking the link here.
SOURCES:
“Charities and nonprofits,” IRS.gov: https://www.irs.gov/charities-and-nonprofits
“Federal Filing Requirements for Nonprofits,” National Council for Nonprofits: https://www.councilofnonprofits.org/running-nonprofit/administration-and-financial-management/federal-filing-requirements-nonprofits
“Your IRS Form 990 Questions Answered,” blueavocado.org: https://blueavocado.org/finance/your-irs-form-990-questions-answered/?gad_source=1&gclid=CjwKCAjwtdi_BhACEiwA97y8BBcZnko5Bt0pKgphXCP99p3pCvcOTnUhgCIQLc1zPLB5BOJeFJIdqxoCnmYQAvD_BwE
Tax season can be a daunting time for nonprofit organizations. Between managing tight budgets, juggling employee needs and fulfilling your mission, handling unemployment costs and HR responsibilities can feel overwhelming. That’s where UST comes in. For over 40 years, UST has specialized in helping nonprofits save time and money, allowing you to focus on what matters most—making a difference in your community.
What is UST?
UST is a leading workforce solutions provider dedicated to serving nonprofit organizations. With over 2,200 nonprofits putting their trust in UST, we provide tailored programs and services designed to save money, streamline unemployment claims, and optimize HR operations. By leveraging UST’s expertise, nonprofits gain a strategic advantage that enables them to improve cash flow and reduce administrative burdens.
Whether you are managing state unemployment taxes or handling complex HR needs, UST offers a variety of solutions to simplify tax season and promote long-term financial stability. Here’s how UST can help your nonprofit thrive.
The Benefits of Partnering with UST
1. Unparalleled Savings on Unemployment Costs
One of UST’s standout offerings is the ability to help nonprofits opt out of state unemployment taxes by becoming reimbursing employers. Nonprofits that qualify can shift from paying state taxes to reimbursing actual unemployment costs dollar-for-dollar. This switch has proven to save organizations up to 60% on unemployment expenses in their first two years with UST. The saved funds are then held in a reserve account, creating a financial asset nonprofits can use for future planning.
2. Expert Claims Management
Handling unemployment claims can be a complex and time-consuming process. UST’s expert claims administrators manage the entire process for you—from assisting with investigations to providing hearing representation. Their online tools also allow you to monitor claims, forecast expenses, and ensure compliance with state and federal laws. This ensures your nonprofit is not overpaying or held back by costly errors.
3. Rate Forecasting for Financial Planning
With UST, you gain access to tools designed to help manage cash flow and budget effectively. Our rate forecasting capabilities provide insight into how unemployment tax changes may make an impact on your organization, so you can plan confidently.
4. HR Support Tailored for Nonprofits
Between compliance requirements and employee needs, HR management can be tricky for nonprofits. UST offers comprehensive HR support through a cloud-based platform, giving you access to:
By adding capacity to your HR team, UST allows you to focus on your mission while ensuring your workforce operates efficiently.
5. Award-Winning Outplacement Services
UST also supports nonprofit staff transitions with award-winning outplacement services. This includes career coaching, resume assistance, interview prep, and more. These services are crucial for nonprofits navigating layoffs or helping employees’ transition, all while minimizing unemployment costs.
6. Peace of Mind with Full Coverage
For nonprofits looking for extra protection, UST’s fully insured program, UST Secure, offers first-dollar coverage for unemployment claims. This ensures your organization’s financial stability even during unexpected workforce changes.
How UST Helps During Tax Season
Tax season is the perfect time to assess your organization’s financial efficiency. Here are a few ways UST simplifies the process:
Why Nonprofit Leaders Choose UST
Nonprofit leaders across the country have experienced transformational benefits from working with UST. Here’s what some of them have to say:
“UST provides so much more than an improved process for handling UI costs. Their scope of services not only saves money but makes the process so much more manageable, especially from an HR perspective. UST truly understands nonprofits!” — Pathways PA, Inc.
“We are a relatively small organization without the resources to have a fully staffed administrative team. Utilizing UST and all its services has been a tremendous help!” — Georgia Center for Nonprofits
By delivering customized solutions, UST enhances operational efficiency and creates meaningful financial impact for hundreds of nonprofits every year.
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As a nonprofit organization, your budget probably doesn’t allow for big cash bonuses or expensive rewards. But that doesn’t mean you can’t provide meaningful recognition that incentivizes your MVPs. In fact, sometimes the “no cost” incentives mean the most to your employees.
Here are nine ideas to help you provide solid recognition to MVPs – on a nonprofit budget.
1. Praise in one on ones. Employees want to feel that their contributions matter and that someone sees the efforts they put into their jobs. Calling out an employee’s “extra mile” work, acknowledging milestones and generally praising the everyday contributions they add can be a great way to reward employees – especially for introverts who might not feel comfortable in the spotlight.
2. Praise in staff meetings. It’s not a secret. You probably also have employees who yearn for the spotlight. While praise in their one on ones is good, they’ll feel even more rewarded when you highlight their contributions in public during staff meetings. Consider building a team kudos section into staff meetings to help build opportunities to highlight achievements and milestones.
3. Send handwritten notes. It may seem old-fashioned but the power of a small handwritten note can be significant. It’s not uncommon for employees to keep them and reread the “kudos” message long after their receipt. It only takes a few minutes to write a congratulations or thank you message. But the impact lasts long after it’s sent.
4. Bring in surprise treats. Ordering a delivery of donuts, cookies or some other treat for a Friday afternoon can bring a big boost to morale – especially after your team pulls off a big event or meets a significant milestone. This thoughtful surprise can build team bonding at an inexpensive cost. The camaraderie built around enjoying surprise treats can help your team feel rewarded and see that their efforts are recognized.
5. Give extra time off. Rewarding top performers with extra time off can be a smart way to build loyalty within a nonprofit. Consider an employee who recently finished a big project. Giving them Friday afternoon off costs your organization nothing. But those extra “time off” hours can build a world of loyalty.
6. Award work from home days. Work/life balance can be highly motivating – especially for employees in nonprofit settings. Recognizing extraordinary efforts with work from home days can be an easy way to reward high performers by giving them the flexibility they may need to handle family situations at no cost to your nonprofit.
7. Prime parking spot. Awarding a “VIP” parking spot can be a smart way to recognize employees who go above and beyond in their duties. Be sure to put up a sign that clearly marks the spot as reserved for the VIP employee. Then make it a priority to rotate the winners of the spot between high performers and more junior employees who exceeded expectations during certain events. The goal is to build the perception that anyone within the nonprofit – no matter what their job – could win this coveted parking spot.
8. Lunch with leadership. Especially for lower-level employees, having the opportunity to be heard by senior leadership can be a significant reward. First, it immediately serves as recognition for their contributions. Then it allows them to proactively share ideas or insights that might help senior leadership better understand organizational issues or find new ways to approach challenges the nonprofit may be facing.
9. Employee of the month award. Within a nonprofit, one of the most powerful morale-boosting strategies is recognition. Building an “Employee of the Month” program can be one of the most successful. Creating a prominent “Employee of the Month” display on a bulletin board helps show your employees and the people you serve that you’re recognizing the efforts of people who go the extra mile for your organization.
Be sure to prominently name the person who earned the reward. Display a photo of them. Include a short paragraph summarizing the reasons they won that month’s recognition. Much like the VIP parking spot recognition, it’s important to make sure your organization recognizes workers across the spectrum of your nonprofit.
As a nonprofit organization, boosting employee morale on a budget can be a great way to retain top performers and attract new superstars. If you’d like more ideas for rewarding employees, take advantage of the UST HR Workplace – a full suite of tools powered by Mineral that can help you find even more ways to reward top performers on a budget. Start your free 60-day trial to access articles and checklists that can help you build a culture of recognition within your nonprofit.
SOURCES:
“From Praise to Profits: The Business Case for Recognition at Work,” workhuman.com, 3/28/23
“22 Free Employee Recognition Ideas That Actually Work,” selectsoftwarereviews.com, 11/29/24 https://www.selectsoftwarereviews.com/blog/free-employee-recognition-ideas
“5 Budget-Friendly Employee Recognition Ideas,” marketinginnovators.com https://www.marketinginnovators.com/blog/5-budget-friendly-employee-recognition-ideas
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UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
