History
501(c) Agencies Trust has a distinguished history of maximizing savings and minimizing risk.
1972
The Social Security Act was amended to include nonprofits in the unemployment tax system. This act gave nonprofit employers a choice whether to participate in the state tax system or reimburse their state for unemployment benefits paid by the state to their former employees. Many nonprofit leaders were unaware of this option.
1979–1981
John Huckstadt, who served as executive director of United Cerebral Palsy from 1970–78, became aware of the savings potential available to a nonprofit organization by opting out of the state unemployment insurance (SUI) tax system and conceptualized a program to take advantage of the savings as well as minimize risk for unexpected claims.
1982
A grantor trust was established with 14 Silicon Valley United Way agencies as charter members. Paul Holland served as trustee and the financial officer for the Trust. A management company called 501(c) Services was formed to provide financial, administrative, claims management, membership development, and insurance services for the program.
1982–2004
Over 22 years, the program was refined and service components were added to deliver a comprehensive unemployment program to members. Trust membership grew to include 993 members in 43 states. 501(c) Services also developed and administered the 402-member Northwest Agencies' Trust in 1986 and the 126-council Boy Scouts of America Unemployment Plan in 1995.
2006
The Trust captured the attention of many national nonprofit organizations, including the America's Second Harvest Food Banks, the YMCA of the USA, the Boys and Girls Clubs of America, National Human Service Assembly, and the YWCA of the USA. These large national organizations endorse the Trust program, encourage their affiliates to participate in the program, and have representation on the Board of Trustees.
2007
The Joint Agencies' Trust and the Northwest Agencies' Trust combined to form the 501(c) Agencies Trust, effective January 1, 2007. A new HR Services program is made available to national organizations to provide support on personnel issues to their local affiliates that are not members of the Trust. The Boy Scouts Unemployment Plan continues to expand to councils across the country.