As COVID-19 continues to spread across the world, many business owners might be struggling to keep their doors open.
Research indicates that nearly 100,000 businesses shut their doors permanently as a result of the pandemic.
It might be worth setting up a hardship relief fund for those worried about remaining profitable. Keep reading to see what it is, how to set it up, and how it could save your business.
Establish Eligibility Requirements for Hardship Relief Fund
Setting up your own hardship relief fund platform must begin with establishing eligibility requirements for those who are seeking assistance. Take some time to think about what circumstances might qualify someone for your fund. Consider creating a questionnaire that applicants can complete to determine their levels of financial challenge.
Furthermore, provide clear and concise information to those who apply so they know what they qualify for. This will help ensure your funds are going to those who truly need them.
Determine the Allocation of Funds
The first step to setting up a hardship relief fund is to make a determination of what portion of the funds will go toward helping people. It is important to make sure the allocation of funds is reasonable and transparent so that everyone is aware of the spending priorities. Several criteria should be met when determining the ratio of funds allocated to the areas in need of help.
Consider the extent of the need, the urgency of the situation, and the resources available to help. The allocation of funds should also take into consideration any existing free or low-cost resources in the community. Be sure to properly document all decisions and spending so that both the people providing the funds and those receiving it will know how the money is being used.
Select Beneficiaries of the Fund
To set up relief fund donations, you will need to identify the purpose of the fund. Take the time to review regulations, maximum contributions, and tax implications for both your donors and beneficiaries. When selecting beneficiaries of the fund, create an application outlining the criteria for eligibility and ensure that it is widely advertised.
Prioritize the most vulnerable and marginalized demographics to ensure that the most at-risk in your population are served and taken care of. Depending on the guidelines you've established, you may be able to add more beneficiaries as the needs arise. A hardship relief fund can make a lasting impact when properly managed.
Designate a Fund Manager
This should be a person who is responsible and has the necessary skills and knowledge to handle complex finances. The fund manager should have a clear understanding of the fund's purpose and mission. He or she should be familiar with tax laws as well as the rules imposed by the government and non-profit organizations.
It is also important to ensure that the fund manager is knowledgeable in the techniques and best practices of fundraising. This can include setting up a fundraising web page, creating a donation form, and marketing the fund. The fund manager should have strong organizational skills in order to coordinate donor communications.
Create an Effective Strategy for Donor Outreach
Your hardship relief fund is only as effective as your donor outreach strategy. With a clear strategy in place, you will be able to successfully reach out to potential donors.
Ask your donors to make targeted donations while concentrating on strategic messaging and social media campaigns. Remind them of your relief fund mission, and empower them to make their voice heard.
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