Employee Disaster Funds (EDFs): Helping your employees in the aftermath of a disaster
Before disaster strikes: advance planning
Natural disasters in the U.S. are occurring more frequently and with greater severity. Living in the Bay Area, it is not a question of IF a disaster will strike, but WHEN. Although it is impossible to predict exactly when one will occur, advance planning will help your employees recover more quickly. Building a thoughtful, comprehensive solution before a disaster strikes enables you to take immediate action, versus struggling to implement a program on the fly in the aftermath of a disaster. By proactively establishing an Employee Disaster Fund, your company can develop your EDF policy, contribute and fundraise for your EDF, determine grant parameters, create grant applications, identify a selection committee and educate employees about the program. This will accelerate aid to impacted employees in the event of a qualified disaster.
Why partner with Silicon Valley Community Foundation?
SVCF has experience helping companies like yours set up and administer an EDF that is IRS-compliant, timely and effective. This allows you to fundraise with tax-deductible receipts and provide speedy charitable grants that are not taxable as income and are not subject to employment taxes or withholding. Issues like defining “charitable class” are more easily resolved when working with an experienced partner like SVCF.
By partnering with SVCF, your company diminishes potential risks such as violating IRS grantmaking rules, charges of employee favoritism or mistreatment resulting from a poorly designed program, and creating an unexpected tax burden on the employee recipient, which are all possible pitfalls with a company-managed program.
For more information on establishing an Employee Disaster Fund, or for help optimizing your existing program, please contact firstname.lastname@example.org.