Compassion in Action: A Guide to Leave Donation Programs

Compassion in Action: A Guide to Leave Donation Programs
July 31, 2025 6 mins

Compassion in Action: A Guide to Leave Donation Programs

Compassion in Action: A Guide to Leave Donation Programs

Discover how leave donation programs foster compassion, support colleagues in crises, and build a caring workplace.

Key Takeaways
  1. Build Community Through PTO Donation: Vacation donation programs let employees support colleagues during crises, fostering a caring workplace.
  2. Clarity and Communication Matter: Clear policies and open communication ensure fairness and highlight the program's impact.
  3. Prepare for the Unexpected: Encourage financial readiness to help employees face challenges confidently.

When disaster strikes—such as fire, flood or personal medical crisis —life shifts instantly. As some employees may be struggling to cope, others may seek to step up, eager to make a difference.

For employers, it’s about more than policies—it’s about creating a place where people take care of each other. A vacation donation program can turn good intentions into real help, supporting those facing tough times while nurturing a true sense of connection across your team.

Lending a Hand with Vacation Donation

A vacation donation program makes it possible for employees to give some of their unused paid time off to coworkers who need extra days to recover and rebuild after a disaster. This isn’t just another HR process; it's a genuine act of caring, a way to say, “You're not alone—we're in this together.”

"Vacation donation programs can bring people together in times of hardship. It's an opportunity to turn empathy into tangible support for colleagues who are facing difficult days," says Abbey Hendricks, Compliance & Policy Consultant.

If you’re considering a vacation donation program for your organization, a thoughtful approach is essential. Here's a step-by-step guide to help you implement an effective, compliant and sustainable program:

  1. Assess Organizational Fit: Determine if adding a time-off donation program aligns with your business's culture and operational needs.
  2. Choose the Type of Donation Program: Decide whether to establish a medical emergency bank, a major disaster bank, or both to meet the specific needs of your workforce. The Internal Revenue Service (IRS) has outlined specific conditions you’ll need to follow to avoid negative tax consequences to donor employees.
  3. Define Program Duration: Evaluate whether the program should be temporary or permanent, considering business objectives and potential future needs as well as IRS requirements.
  4. Consider Charitable Leave Donation Options: Decide whether to implement a temporary charitable organization leave donation program if permitted by the IRS, especially in response to significant disasters.
  5. Engage Legal Counsel: Review all program aspects with legal counsel to confirm adherence to relevant employment laws and regulatory requirements.
  6. Identify System Limitations: Assess existing HR systems for any constraints that could impact the administration of leave donations.
  7. Develop a Comprehensive Policy: Draft a clear, written policy outlining eligibility criteria and the operational structure of the program.
  8. Consider Establishing a Donation Bank: Routing all donated time into a central, employer-managed bank can promote fairness and strengthen your community. When establishing a donation program for a major disaster a central bank is required.
  9. Focus on Genuine Need: Limiting the use of the program to significant, officially recognized major disasters, or defined medical emergencies keeps resources available when they are needed most and ensures IRS requirements are followed.
  10. Create a Communication Strategy: Define a clear plan to communicate the program to employees, ensuring information is accessible and up-to-date.
  11. Provide Written Guidelines to Employees: Clearly outline how the program works, including eligibility, donation/application processes, tax implications, approval steps and allowable timelines for donations and usage.
  12. Lead with Compassion: Share information openly and celebrate stories of generosity and resilience to foster participation and reinforce a culture of care.

Bringing these steps together ensures your vacation donation program is not only compassionate but also compliant, well-understood and impactful for your entire organization.

Allowing employees to donate unused time without following IRS requirements can result in donor employees being taxed on the full value of their donated time—obviously a result to avoid! Fortunately, the IRS has provided clear examples so employers can structure their programs in a way that avoids negative consequences to donors.

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By following the IRS examples, employers can empower their employees to give generously—confident that the donations will make a difference without adding personal cost.

Abbey Hendricks
Vice President, Legal Consulting Group, Health Solutions, North America

Building Employee Engagement

Vacation donation programs do more than help during difficult times:

"We often see firsthand the resilience and kindness that emerge when people are given the chance to support each other in a crisis. This type of community support can always help emotional well-being. When organizations empower their teams through programs like vacation donation, it reinforces a culture of trust, belonging and a sense of collective well-being. We've got your back!," says Audrietta Izlar, Assistant Vice President, Health Transformation.

And the benefits go further: less stress, more loyalty, a sense that work is about more than just the job. It's about showing up for each other, day after day.

Prepare Your Team Before Disaster Strikes

Giving employees the tools to plan ahead can make all the difference. Help your team feel prepared:

  • Share Financial Wellness Resources: Host workshops or point people toward practical tools—think emergency savings checklists, simple budgeting guides, or access to counseling and support services. Even a little planning can provide peace of mind.
  • Encourage Saving for a Rainy Day: Offer small incentives for building emergency savings, like a matching contribution to a rainy-day fund. It’s a powerful way to show you care about your employees’ long-term well-being.

“Being proactive—by sharing financial wellness resources—gives employees the confidence to face challenges head-on. It's not just about reacting to hardship, but about helping people build resilience to face any uncertainty ahead,” says Sander VanderWerf, Senior Vice President, Time Away & Life Solutions.

Ready to Make a Difference?

Supporting your team doesn't have to be complicated or expensive. Start by asking:

  • Does your organization make it easy for people to lend a hand—or ask for help?
  • Do your employees know about the ways they can prepare for and recover from tough times?
  • Are you telling the stories of kindness and resilience that inspire others to act?

When you encourage generosity and celebrate compassion, you create a workplace where every person feels seen, valued and supported—especially when it matters most.

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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