Glossary
Church Specific

Benevolence Fund

By: Alec Hollingsworth
Updated:  
June 16, 2025

DEFINITION:

A benevolence fund is a church-managed pool of money set aside to help individuals facing temporary financial hardship.
A benevolence fund is a designated pool of money maintained by churches or religious organizations to provide financial assistance to individuals or families facing temporary hardship or emergencies. These funds are typically used to cover needs such as rent, utilities, food, medical expenses, or other urgent living costs. Disbursements are usually made after a review process to ensure that the aid goes to those who genuinely need it and that the process is handled fairly and confidentially. The fund is supported by donations from church members or other benefactors, and specific guidelines are established to maintain proper oversight, transparency, and compliance with IRS regulations regarding charitable giving.

Key Takeaways

  • Supports individuals in crisis within the church or local community.
  • Requires clear guidelines and oversight for proper use.
  • Tracked as a separate fund in accounting systems.
  • Funded by donations from members or supporters.

Why It Matters

Ensures churches can respond compassionately and responsibly to urgent needs within their community.

Real World Example

After a local family lost their home in a fire, the church's benevolence fund provided immediate assistance. The family received help with temporary housing, food, and clothing expenses, enabling them to recover from the crisis. The church’s finance committee reviewed the request, confirmed the need, and approved the disbursement. Donations from the congregation replenished the fund, ensuring resources remained available for future emergencies. This transparent process, tracked in the church's accounting system, assured donors that their contributions directly supported those in need.

How Aplos Helps

Aplos allows churches to easily track benevolence funds as separate accounts or funds within their accounting system, ensuring transparency and compliance. Fund managers can monitor donations, disbursements, and generate reports for church leadership or auditors, all within Aplos’ platform.
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Frequently Asked Questions

What is a benevolence fund?

A benevolence fund is a pool of money managed by a church to help individuals or families experiencing financial hardship.

How are benevolence funds distributed?

Funds are disbursed following an application and review process to ensure fair, confidential, and appropriate aid to those in need.

How does Aplos help manage benevolence funds?

Aplos enables churches to track donations, disbursements, and generate reports for benevolence funds to ensure accountability and compliance.

Are benevolence fund donations tax-deductible?

Yes, donations to a church’s benevolence fund are generally tax-deductible if managed in accordance with IRS guidelines.

Related Terms

Accrued Revenue
Reserve Fund
Petty Cash
State Charitable Registration
Aging Report
Project Tracking

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