A benevolence fund is a fund set up by a church or Christian organization to provide financial assistance to people in need. The concept of a benevolence fund comes from several biblical principles:
1. God calls us to care for the poor and needy
Throughout the Bible, God makes it clear that He cares deeply for the poor and needy. For example:
“Whoever is generous to the poor lends to the Lord, and he will repay him for his deed.” (Proverbs 19:17)
“Whoever oppresses a poor man insults his Maker, but he who is generous to the needy honors him.” (Proverbs 14:31)
Jesus said that when we care for those in need, it is as if we are caring for Him (Matthew 25:31-46). God calls on His people to be generous and compassionate toward the poor and needy.
2. The early church shared resources to meet needs
In Acts 2:44-45, the early Christians “had all things in common. And they were selling their possessions and belongings and distributing the proceeds to all, as any had need.” They saw themselves as one family and joyfully used their resources to provide for one another.
3. Giving generously pleases God
The Bible encourages generous giving as an act of worship and obedience. “Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver” (2 Corinthians 9:7). When we give generously to help others, it demonstrates our trust in God as our provider.
4. We are to do good to all people
Galatians 6:10 says, “So then, as we have opportunity, let us do good to everyone, and especially to those who are of the household of faith.” As Christians, we are called to do good and meet needs whenever we can, both inside and outside the church.
A benevolence fund allows a church or ministry to provide financial assistance to those who are struggling or in crisis. This act of compassion reflects God’s heart for the hurting and displays His love in a practical way.
Common uses of a benevolence fund
There are many potential uses for a benevolence fund. Here are some of the most common:
- Helping cover basic living expenses like rent/mortgage, utilities, or groceries
- Paying for unexpected medical procedures or prescriptions
- Providing money for gasoline or car repairs
- Helping with childcare costs
- Covering the cost of counseling or addiction treatment programs
- Providing transitional housing assistance
- Paying for job training programs
- Funding prison aftercare programs
- Helping victims rebuilding after disasters
- Paying for funeral expenses for families in need
The fund can be used flexibly to help church members and/or community members, based on policies set by church leadership.
Key principles for managing a benevolence fund
Here are some important principles for churches to consider when establishing and managing a benevolence fund:
- Pray for wisdom and discernment. Ask God to guide decisions about how the funds will be used. Pray for discernment when evaluating individual requests (James 1:5).
- Develop clear policies. Decide who can request help, what needs will be eligible, the maximum amount per request, etc. Communicate policies clearly.
- Maintain confidentiality. Keep requests and assistance private to protect dignity (Matthew 6:1-4).
- Promote sustainable solutions when possible. Sometimes the most loving response is to provide tools to overcome challenges rather than just money. Seek holistic solutions.
- Involve others in decisions. Consult deacons, small group leaders, etc. to get broader input rather than having just one or two people decide.
- Monitor fund usage. Track assistance given and regularly evaluate effectiveness of policies and whether adjustments are needed.
- Be good stewards. Use money wisely, being neither overly restrictive nor excessively generous (Luke 16:10-11).
Churches may also partner with local aid organizations to increase their ability to meet needs. The key is to be generous while still maintaining responsible oversight of the funds.
How to raise money for a benevolence fund
A church benevolence fund can be funded through different sources:
- Member contributions – Many churches set up a separate “deacons fund” offering that members contribute to.
- Budget allocation – The church governing board can approve an annual budget allocation for benevolence.
- Special offerings – Take up a special offering for the benevolence fund on Communion Sundays or other special days.
- Fundraisers – Host concerts, auctions, bake sales, etc. with proceeds going to benevolence.
- Memorial gifts – When a member passes away, suggest that memorial gifts go to the fund.
- Grants – Apply for community development or social service grants to provide an ongoing source of funding.
Promote the benevolence fund regularly so the congregation understands and supports it. Make giving easy through online, text, etc. Develop both regular givers and those who give when specific needs arise.
Benevolence assistance vs. enabling
It takes wisdom and discernment to provide financial help in a way that genuinely assists people rather than enabling dysfunctions. Here are some principles that can guide benevolence giving:
- Seek to understand root issues contributing to the need, not just symptoms.
- Provide the minimal assistance needed rather than fully funding every request.
- Offer assistance in the form of paying bills or providing food/gas cards rather than cash.
- Require partnership from the recipient as much as possible.
- Connect recipients to mentors and resources that can facilitate long-term change.
- Set limits on frequency and duration of assistance provided.
- Offer guidance and accountability along with financial help.
- Let natural consequences play out while refusing to rescue from every situation.
The goal is to care for immediate needs in a way that empowers positive change. Wise boundaries communicate care for the person, not just the problem.
Partnering with other organizations
Churches don’t have to run an entire benevolence ministry alone. Often it can help to partner with other groups. Some possibilities include:
- Food banks – Connect people to local food banks and pantries that provide groceries and meals.
- Housing programs – Develop relationships with transitional housing and shelter providers.
- Job training – Refer people to agencies offering job skills classes and career mentoring.
- Counseling centers – Maintain a list of Christian counseling options to address core issues.
- Debt management – Direct people to reputable nonprofits offering debt and budget counseling.
- Utility assistance – Many energy providers offer programs for customers struggling with bills.
- Other churches – Smaller churches can partner with larger ones that have more extensive benevolence ministries.
Staying connected to the network of local organizations makes it easier to direct people to specialized resources beyond what a church can provide on its own.
Benevolence policies and procedures example
Here is an example of what benevolence policies and procedures could look like at a church:
Eligibility for Assistance
- Attenders and members who have regularly participated in the church for at least six months.
- Need must be an emergency or crisis, not an ongoing long-term situation.
- Individual/family has no other options for meeting the need.
- Applicant is willing to provide necessary documentation to validate situation.
- Applicant is actively working to improve situation rather than depending on ongoing handouts.
Types of Assistance Available
- Rent/mortgage – max $500, 1x per year
- Utilities – max $200, 1x per year
- Car repairs – max $300, 1x per year
- Medical bills – max $1000, consider negotiating lower payoff
- Food/gas cards – max $75/mo for up to 3 months
Application and Approval Process
- Individual meets with deacon/small group leader to share need.
- Deacon helps them submit written application detailing situation.
- Deacon team evaluates request based on policies and makes decision.
- Applicant agrees to regular meetings with deacon/mentor during assistance period.
- Deacons distribute assistance directly to creditor, not individual.
Having clear policies and procedures provides consistency, accountability, and responsible stewardship in managing a benevolence fund.
Legal and tax considerations
Churches should be aware of some potential legal and tax issues when administering a benevolence fund including:
- Tax reporting – If assistance to an individual exceeds $600 in a year, the church should send them a Form 1099.
- Charitable documentation – Keep records on recipients and use of funds to maintain tax-exempt accountability.
- Restricted donations – If donations are restricted to a certain benevolence purpose, the church must honor that.
- Employment taxes – Assistance given to church employees could be taxable as income.
- Liability risks – Establish policies limiting assistance to avoid members becoming dependent on ongoing aid.
- Counsel – Seek professional legal/tax counsel to ensure compliance and prevent issues.
While benevolence funds operate on the basis of compassion, churches still need to follow applicable regulations and safeguard themselves from legal vulnerabilities.
Benevolence fund case studies
Consider these real-life examples of churches using benevolence funds:
Medical crisis assistance
John, a pastor, was in a serious car accident and didn’t have health insurance. His injuries required spinal surgery and a week-long hospital stay. The total medical bills came to $85,000. The church’s benevolence team met with John and his family. They provided $5,000 from the fund to help cover immediate expenses and negotiated an affordable monthly payment plan with the hospital for the remaining costs.
Helping a homeless veteran
Robert was an Iraq War veteran living out of his truck in the church parking lot. The outreach minister connected him to the VA, as well as transitional housing options for veterans. The church used benevolence funds for a security deposit, first month’s rent, bedding, and kitchen items to help Robert move into an apartment while he waited for veteran housing assistance to come through.
Assisting a single mom
Jenny was a struggling single mom who worked as a grocery clerk. When her daughter got sick and was hospitalized for a week, Jenny missed so much work that she couldn’t pay her rent or utility bill that month. The benevolence team paid $700 to bring her rent current, gave her a $200 utility voucher, and provided some gas cards to help with transportation to work. They also connected her to community resources for single moms.
These examples illustrate how a benevolence fund can be used in a variety of circumstances to offer timely assistance to church members and others facing situational hardships and crises.
Benevolence fund FAQs
Should our church budget annually for benevolence needs?
Yes, having an annual budget line item for benevolence gives the fund stability and allows the church to be proactively generous in meeting needs. The amount can be determined based on past benevolence demand and projected costs for the coming year. Additional special offerings can supplement the budgeted amount if needed.
Is there a recommended amount to keep in a benevolence fund?
Most churches aim to maintain a minimum balance to cover 2-3 months of average benevolence assistance. This allows the fund to remain solvent if giving fluctuates. Some experts recommend setting aside $100 per active church member as a reasonable ballpark estimate.
Should we help non-church members through our benevolence fund?
Most churches reserve benevolence aid for active church attendees and members in good standing. However, some churches broaden the scope for special cases of need in the local community. Clear policies help direct limited funds where they will provide the greatest member care and gospel impact.
Won’t people take advantage if we publicize the benevolence fund?
It’s a valid concern. The key is finding balance between promoting the fund among genuine potential recipients and widely advertising it to the general public at large. Church leaders should exercise discernment and stick to established policies.
Is there a way to offer benevolence anonymously?
Yes, churches can develop processes where deacons assessing needs are not the ones distributing funds. Giving assistance directly to creditors also helps maintain privacy. Confidentiality protects the dignity of recipients and preserves the selfless nature of giving.
A benevolence fund is a practical way for churches to meet pressing financial needs within their congregation and community. With prayerful administration, it can be a powerful tool for demonstrating Christ’s love.