¾«¶«Ó°Òµ

What is an Employee Assistance Fund?

An Employee Assistance Fund (EAF), also known as an Employee Relief Fund or an Employee Crisis Fund, is a program to help employees cope with unexpected hardships that place undue financial stress on them and their families. A leading way to distribute assistance funds is through an external nonprofit partner that increases the flexibility of what hardships the fund can cover and lowers the administrative burden to the company and the employee.Ìý

Many employers establish these funds to assist their employeesÌýwith the financial challenges these types of events present. An EAF helps employees recover more quickly, demonstrates a company’s care for its employees and commitment to their well-being, and provides co-workers with an opportunity to help their colleagues.

¾«¶«Ó°Òµâ€™s Charities provides employers with the support they need to offer EAFs to their employees.Ìý

Why Partner with ¾«¶«Ó°Òµ’s Charities?

By working with us, your company can provide support to employees in times of distress and hardship. Each EAF is tailored to the parameters and qualifications provided by the company, ensuring it aligns with its corporate values and culture.Ìý

• EASY SET-UP –ÌýWith an already established infrastructure, ¾«¶«Ó°Òµâ€™s Charities can quickly launch and mobilize your company’s EAF.

• ESTABLISHED EXPERIENCE –ÌýDecades of experience in corporate relationships, customer service, and funds management ensures that your EAF is managed professionally.

• GREATER FLEXIBILITY –ÌýPartnering with ¾«¶«Ó°Òµ’s Charities, an external nonprofit, provides flexibility and tax advantageous options for employers and employees.

¾«¶«Ó°Òµ’s Charities hasÌýdecades of experience helping businesses help others. Read more about our employee workplace giving and business philanthropy solutions.

How are EAFs Established?Ìý

There are two ways to establish an EAF:

1. A company mayÌýestablish a separate charity or a private foundation.ÌýBoth of these require investment, ongoing administration,Ìýand adherence to applicable laws and regulations.ÌýIn addition, there may be additional program restrictions with a private foundation. For example, a corporate foundation can only provide tax-exempt grants for qualified disasters. Many disasters and emergency hardship situations are not qualified as disasters.Ìý

2. A company mayÌýpartner with an established public charityÌýwithÌýexperience, expertise, and infrastructure applicable to managing an EAF.ÌýThis option provides the most flexibility for a company. An established charity with proven funds management experienceÌýexpertise—likeÌý¾«¶«Ó°Òµ’s Charities—does not have the same qualifying limits as privateÌýfoundationsÌýdo, as outlined in the first example.ÌýMore information can be found inÌý.

Since 1980, ¾«¶«Ó°Òµ’s Charities, a nonprofit 501(c)(3) tax-exempt public charity, has managed more than $700Ìýmillion in funds on behalf of hundreds of businesses.ÌýLearn more about ourÌýfundsÌýmanagement services.ÌýÌý

Program Overview

We will partner with you to define your EAF program’s parameters.ÌýThis includes employee eligibility, qualifying events,Ìýand financial assistance guidelines.ÌýYou are responsible for funding the program, including program expenses, and making the EAF application available to your employees.ÌýWe can also establish a mechanism for employees to contribute directly to the fund or work with your existing employee giving program.ÌýThen we will review applications and documentation against the criteria and make a decision on award and amount. We will provide quarterly reports detailing funds received, applications receivedÌýand status, and grants issued to employees.ÌýMonthly reports may be provided during periods of increased volume (e.g., disaster).Ìý

Photo Credit: Ìý´Ç²ÔÌý