We are rarely ready for natural disasters to strike, but we can be ready to help. By starting an employee disaster relief fund, corporations can provide financial aid to their employees when they need it most.
This act of donation, along with other disaster relief programs, is a mutually beneficial way for companies to have their workers’ backs. Below, we’ll break down what this fund really is, why you should start one, and how quickly you can make a philanthropic difference with Groundswell.
Employee disaster relief funds are a type of assistance grant a company can offer its employees when unexpected hardship hits. Hurricanes, wildfires, earthquakes, floods, and more can rip the floor out from under someone in a heartbeat. However, with financial support available, employees and their families can find their footing right away.
In 2024 alone, 27 weather-related catastrophes in the United States brought losses in excess of $1 billion each. For affected employees, corporate disaster relief can help cover the emergency costs of events like this, mitigating the tragic losses as much as possible.
Corporations can establish a disaster relief fund through employer and employee donations. Many companies integrate the program into their benefits package and offer donation matching to incentivise participation. This helps grow the fund in advance, making sure money is ready for when employees suddenly need assistance.
Workers suffering disaster-related hardships can apply for their eligible expenses to be covered. Managing these applications, as well as the fund itself and its disbursements, can be a convoluted administrative challenge. Managing it internally can lead to privacy concerns, legal issues, and piles of administrative work, and existing EAF platforms can be expensive and don't move quickly.
Using an all-in-one social impact platform like Groundswell streamlines the process and gets desperately needed donations to affected employees faster—within 24 hours. Groundswell handles all the administration work, from setting up your program to reviewing and approving applicaitons to distributing the grants.
When companies show up to support their people, everyone benefits. For employees and employers alike, having an emergency disaster relief policy brings with it a host of upsides.
The obvious employee benefit is financial assistance when they’ve lost their health, home, or more to a natural disaster.
Corporate disaster relief funds can help cover:
When companies can provide these sorts of benefits to their employees, not only do they demonstrate their commitment to their employees, but they also ensure that employees are less likely to face obstacles that limit their ability to perform their jobs. A lack of transportation, for instance, could keep employees from being able to reach the workplace.
Starting an emergency disaster relief program tells current and prospective employees that the company prioritizes their well-being. It adds a positive notch to a brand’s belt, boosting retention rates and attracting top talent. When workers feel cared for, they’re more likely to care for the company in return.
Employer and employee donations to a disaster relief fund are tax-advantaged (for those subject to United States IRS regulations - tax laws in other countries will vary), benefitting all who participate in the generosity. Even though the money will directly benefit employees, the IRS does not consider this money as “self-dealing.”
So long as an independent selection committee manages the funds and payments that go towards qualified disasters, companies and workers alike can enjoy the tax advantages of their fund.
Adding a disaster relief fund to your employee benefits from scratch can be arduous. Using an employee engagement program like Groundswell makes things as intuitive as possible. With a single tool, you can:
Establishing your goals, limitations, and expectations for the disaster relief fund early is key. Don’t wait until bad things happen to get the ball rolling!
Dealing with disasters is difficult enough. Getting donations to the people who need them shouldn’t be difficult, too. At Groundswell, our mission from the start has been to make social impact as simple, cost-effective, and efficient as possible.
Our modern platform is user-friendly and customizable, helping companies establish and manage the perfect disaster relief fund and more for their employees. We don’t take weeks or months to get your valuable donations where they’re needed. In just a few days, disaster-affected employees can have their assistance in hand, doing the work it was set aside to do.
You can track, measure, and report all donations and matches made to your funds with ease, finding ways to improve your disaster relief program in the same place you built it. External committees will handle decision-making on applications, and experts will be ready to support you however you need.
Don’t wait for disaster to come knocking before setting up a way to help. If you want to see how easily Groundswell can help you make a bigger difference for your employees, book a demo today.
