Benevolence Fund

How should I explain the benevolence fund to our congregation?

A church benevolence fund is a financial resource established by a religious organization to provide assistance to individuals or families within the church community and sometimes the surrounding community who are experiencing financial hardship or a crisis situation.

The fund is typically supported by donations from church members and may be used to help with various needs such as food, shelter, utilities, medical expenses, and other essential needs. The purpose of a church benevolence fund is to offer support and aid to those in need while reflecting a congregation’s values of compassion and caring.

Are donations to the benevolence fund tax deductible for our congregants?

Usually, the Church welcomes suggestions regarding fund allocations, but the final determination is made exclusively by the church and/or its Board of Directors. This ensures efficient management and can allow for tax-deductible donations. Please contact us if you or your congregant has any questions about IRS regulations–we are happy to provide guidance.

How can we use the benevolence fund to help our community?

• The Church can provide emergency financial assistance to individuals or families facing unexpected expenses such as medical bills, utility bills, rent, or mortgage payments.
• The Church can provide food assistance by food vouchers, grocery store gift cards, or directly providing food to those experiencing food insecurity or hunger.
• The Church can help to cover the cost of essential utilities like electricity, gas, and water for those struggling to make ends meet due to temporary hardship.
• The Church can provide school supplies or the funding of educational expenses for children from low-income families.
• The Church can provide financial support for transportation needs such as bus passes, gasoline gift cards, or vehicle repairs for individuals who rely on transportation for work or medical appointments.
• The Church can assist with temporary housing expenses for individuals or families facing homelessness or eviction.

How should we manage our benevolence fund?

To effectively manage a benevolence fund, a church should establish certain administrative protocols:

• Clearly outline the fund’s purpose, specifying the types of local needs it will address, such as food, utilities, or medical expenses.
• Define the financial criteria that qualify individuals for assistance, like unemployment or income level.
• Establish an approval process, designating who authorizes fund disbursements, possibly through a committee or the minister, and implementing a formal application procedure.
• Preferably issue payments directly to creditors or vendors rather than beneficiaries to ensure fund integrity.
• Maintain meticulous documentation detailing expenditures and recipients.

Remember that we are here to help!  We can draft a benevolence policy, develop an application (and related processes) for persons wishing to apply for funds, create oversight guidelines, and even assist you with reviewing potential vendor contracts.