IDear Workforce-I Good Places to Turn for Benevolence Funds

January 9, 2000

Dear Workforce:

Where can I find information on employee benevolence funds? We are designing a program where employees can donate money or vacation time into a pool. When an employee has a catastrophic event, the employees vote on how much or what we can do to help using the fund proceeds.
--Kim Frederick, PHR, Employment Manager, Julian LeCraw & Company, Atlanta.


Dear Kim:

Benevolence funds are common to companies that accumulate sick time into banks of unused days. Most notably in the following professions:

  • Education
  • Health care providers
  • Public employment

Information with respect to specific plan design and rules is generally found through associations representing these industries, such as AHA for hospitals, NEA for education and through public employee associations.

Generally, there are both pros and cons to establishing these type plans. On the one hand it is a gesture of generosity when employees respond to a request for a donation of time to another employee. On the other hand, when there is low response or no response, it is viewed as a popularity contest for worthy causes.

SOURCE: The Segal Company, New York, NY, December 1999.

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