Unemployment trusts for nonprofits merge to create one of the nation's largest with assets valued at $60 million
CUPERTINO, Calif., February 5, 2007 - Joint Agencies' Trust and Northwest Agencies' Trust, two of the nation's leading unemployment trusts for nonprofits, announced they have merged into a single organization named 501(c) Agencies Trust. The Board of Trustees of both trusts voted unanimously to merge to better serve the combined 1,500 nonprofit trust members in 44 states and the District of Columbia. With federal unemployment levels and claims continuing to decline, the merger provides a timely opportunity for nonprofit members to further reduce the risks and costs associated with unemployment taxes.
"Our intent with the merger is to bring together the talent and best practices of both trusts to help our nonprofit members more effectively reduce their unemployment costs through a safe and secure program," said Doug McLendon, Board Chair of 501(c) Agencies Trust. "The new trust will give us the leverage and flexibility to save additional funds and develop new programs for our member agencies."
In 1982, the Joint Agencies' Trust was established by nonprofit leaders who recognized the opportunity for nonprofits to reduce unemployment costs by leaving the state unemployment tax system and reimbursing the state for actual claims (as allowed by federal law*). The Joint Agencies' Trust is credited with being the first nonprofit unemployment trust. In 1986, the Northwest Agencies' Trust was formed as a sister organization to serve nonprofits in the Northwest. Now as 501(c) Agencies Trust, the merged organization serves 1,500 nonprofit members in 44 states and DC with Trust assets of more than $60 million. Members of 501(c) Agencies Trust save nearly $50 million per year by being in the Trust, compared to the amount they would pay in state unemployment taxes.
"As a member of the Joint Agencies' Trust, we are very pleased by the merger of these two organizations," said Irv Katz, President and CEO of the Washington, DC–based National Human Services Assembly. "The new trust brings together nonprofit leaders and trust administrators who understand the special challenges and issues confronting nonprofits. The savvy management of the Trust and expert support provided in navigating unemployment issues help us keep unemployment costs low and allow us to focus on the delivery of our programs."
In determining to move forward with the merger, the Board of Trustees from both trusts evaluated administrative operations and examined geographic overlaps. They concluded that a merged, nationwide organization would better serve nonprofit members by increasing administrative and program efficiencies. They also concluded that a merged organization could more broadly and consistently reach out to prospective members.
The trustees from both trusts merged into a single 501(c) Agencies Trust board consisting of 21 volunteers from the nonprofit community. Board members represent some of the largest and most prestigious nonprofits in the nation, including America's Second Harvest, Boys and Girls Club of America, National Human Services Assembly, Points of Light Foundation, United Way, YMCA, and YWCA, as well as many smaller independent organizations. For more information about the merger and complete information about 501(c) Agencies Trust, visit www.501ctrust.org. Nonprofits interested in more information on the Trust, its services, and membership, may call 1-800-442-4867.
About Joint Agencies' Trust
The Joint Agencies' Trust was started with 21 nonprofit agencies in 1982. Its goal was to help nonprofits reduce their unemployment costs by leaving the state unemployment tax system and become reimbursing employers — in a safe and secure alternative program. Since that time, the Trust has grown to more than 1,000 organizations. The Trust has been administered by 501(c) Services since its inception.
About Northwest Agencies' Trust
The Northwest Agencies' Trust was created in 1986 to serve nonprofits in Washington, Oregon, Idaho, and Alaska. This Trust has also been administered by 501(c) Services since its inception.
*Section 3309 of the Federal Unemployment Tax Act enables 501(c)(3) organizations to opt out of the tax system and reimburse the state only for unemployment claims the state has paid out to the nonprofits' former employees.