Estimating Application Volume for Employee Relief Fund Budgeting

Further, data collected from relief fund applications show that certain events receive applications more frequently. Employers with a new program can design a narrower program to limit the total number of grants based on these categories.

As shown in the chart above, medical-related expenses are easily the most common category. Employers starting a relief fund should consider that factor when deciding which events qualify and what the fund’s initial budget should be. Additionally, the maximum grant amount can be set to a lower amount, such as $1,500, for the initial year of the program.

During the first year of the relief fund program, employers can expect 0.5–1% of all employees to submit applications to the fund. A narrower fund with fewer event categories will reduce that number significantly. As an example, if an employer has 10,000 employees and a standard fund, it can expect 50 to 100 applicants, with 45 to 90 receiving grants. Assuming a maximum grant of $1,500, this would mean $67,500 to $135,000 in grant dollars in the first year.

Given that approximately half of all applications are for medical-related expenses, excluding or limiting those categories could be expected to sharply reduce the grant dollars. Another option for employers who want a fund with a very limited budget would be to have a disaster-only fund. That would mean a large sum of grant dollars going to employees in need when there is a qualifying disaster, but otherwise the fund would be dormant.