Another valuable tip from nonprofit lawyer Kathryn Vanden Berk for those of you located in Illinois (other states may offer a similar option; Kathryn would know):
Nonprofits may elect to be “reimbursable employers” for unemployment compensation purposes. If you become a reimbursable employer, you will not pay monthly contributions to the Illinois Department of Employment Security (IDES). Instead, you reimburse IDES only when a former employee qualifies for and receives unemployment benefits. This is a wonderful option if you have a stable workforce, or if you have the kind of workforce whose members, for a number of reasons, rarely qualify for unemployment benefits. Conversely, it is a terrible option if you have a large turnover and numerous UC payouts. The option is not available to for-profit employers.
Unfortunately, the sort of nonprofit most likely to benefit by reducing recurring expenses such as unemployment insurance contributions–that is, a small one–is also the sort least likely to have a "stable workforce" (many of you may be asking, "What’s that?").
But perhaps those selfsame small nonprofits are likely to have workers who rarely qualify for unemployment–because they don’t work long enough; because their employers make them so miserable that they quit, instead of firing them outright; because they’re classic nonprofit sector overcompensators who don’t apply for something to which they’re entitled because it might cost the agency money.