Non-Profits

Not-for-profit (NFP) organizations have different needs and derive different benefits from captives.

When we work with NFPs, we generally find that NFPs are strapped for cash. They usually want or need to offer additional member services above what dues revenues will provide.

A properly structured insurance program provides the following benefits:

• A member service that helps lower costs
• Stabilization of premiums for members over the long run (and preserves dues income)
• Establishes a permanent source of revenue to supplement dues
• The source of revenue could be in the form of a royalty which is not currently subject to the unrelated business income tax (UBIT)
• If the NFP owns the captive, the NFP could receive dividends from profits from the captive