When setting up an emergency assistance fund, many companies forge ahead without putting much thought into the best practices in creating these types of programs. Failure to do so always results in a fund that is less efficient, and therefore more expensive and less effective, than it could be.
While not an exhaustive list, the following are some areas to consider before finalizing the details on your organization’s emergency assistance fund:
Source: Stockham, D., Clontz, B. 17 May, 2019 (revised from 2012 version) Emergency Assistance Funds (EAFs) for Employee Hardship and Disaster Relief: Legal, Tax and Design Considerations. Planned Giving Design Center. Accessed from: http://www.pgdc.com/pgdc/emergency-assistance-funds-eafs-employee-hardship-and-disaster-relief-legal-tax-and-design-cons
Click here to view the original article on the Emergency Assistance Foundation’s website.
The Emergency Assistance Foundation, Inc. is a 501c(3) charity created to design and operate multiple employer-sponsored disaster relief and employee hardship funds. These funds allow domestic and international employers and employees to help their coworkers in times of crises.
EAF is a 501c(3) tax-exempt, public, non-profit organization with IRS approval specifically for Employee Hardship and Disaster Relief Funds which can be administered in the United States, Canada and internationally.