Trust profile
A 1972 federal law gives nonprofit employers the option of reimbursing the state for actual unemployment claims rather then participating in the state unemployment insurance tax program.
The 501(c) Agencies Trust helps nonprofits exercise this option with a secure, cost-effective program.
Mission
The 501(c) Agencies Trust mission is to provide a quality unemployment program for nonprofit organizations. Our program has been structured with the needs of the members in mind and is regularly reviewed and improved to ensure it is the best unemployment program available to nonprofits.
Background
The Trust was started with 14 nonprofit agencies in 1982. The goal was to help nonprofits reduce their unemployment costs by leaving the state unemployment tax system (as permitted by federal law) and becoming reimbursing employers in a safe and secure alternative program. Since that time, the Trust has grown to more than 1,500 organizations operating in 45 states.
Governance
Our volunteer Board of Trustees convenes quarterly to review unemployment claims, finances, and member service activity. Day-to-day operations of the Trust are provided by 501(c) Services, an experienced trust administration firm devoted to the nonprofit community. The board has established policies for trustee diversity, geographic representation, and tenure.
Assets
The Trust has more than $60 million in assets that are owned by the individual members. Trust member reserve accounts are individually held and owned. Money is not pooled, so the funds held by one member are not used to cover the unemployment costs of another member.
Investments
Trust funds are invested prudently, and the return on investments is credited back to members based on the balance in their reserve account. Trust investments are controlled by the Board of Trustees, who confer with outside investment consultant Wurts & Associates.
Protection
The Trust is protected by several insurance programs. These include stop loss insurance, which protects members in the event of unusually high unemployment claims; Trustee Fiduciary Responsibility Liability, which protects the trustees; and a commercial crime bond, which protects the Trust in the event of lost or stolen funds.
The Trust is audited annually by an independent CPA firm that provides the trustees with audits based on generally accepted accounting principles.