The series on Club Philanthropy has addressed a number of different types of methods in which clubs have established foundations for numerous charitable purposes. These range from art and library foundations to preservation foundations to foundations established to provide scholarships and employee hardship grants. Some qualify as charities and others do not. There was a large uptick in employee assistance foundations during the pandemic.
Members came together to help support their clubs’ employees and the generosity of the members was overwhelming. Despite the clubs either not being open or having limited access, members did all they could to make sure the employees would receive at least some compensation during the closure or that health insurance was continued.
If not already in existence, the clubs created an “Employee Hardship and Disaster Relief Fund Program.” This is one way to get money donated by members out to employees quickly and tax-free. Under the Internal Revenue Code, employers are permitted to provide tax-free relief to employees in disaster circumstances. The Federal Emergency Management Agency (FEMA) maintains a list of declared disasters. While COVID-19 expanded its reach, these disaster relief programs have been around for a long time and in 2021 would also apply to those impacted by the wildfires out west and the various hurricanes that hit the shores of the United States.
Download the fifth article in a series on Philanthropy in Clubs which was originally published in Club Director and co-authored by Kevin F. Reilly, J.D., CPA, CGMA.
Reprinted with permission from the fall 2020 issue of Club Director published by the National Club Association.
