Emergency Assistance

Emergency savings are one of the most foundational elements of financial well-being and financial plans. These savings are like suspensions in one’s car; not only do they make the ride comfortable, but they also let you focus on the end goals without worrying about tactical maneuvering. It is recommended to save between three and six months of expenses, but that seems like an aspirational goal for many Americans. According to a recent Fidelity report, 57% of US adults can’t afford $1000 in emergency savings. It’s not surprising if you consider that most Americans - 78%, according to a recent article by Forbes - live paycheck to paycheck.?

The issue becomes more severe in the case of natural disasters, which, by some accounts, have been occurring more frequently. Go-fund-me and corporate donation campaigns have become part of these situations. Helping set up emergency savings vehicles for employees is one path employers can take. However, that may not be sufficient. A safety net established by employers, which assists employees in case of emergencies, is another option.?

Canary takes a very novel approach to setting up these funds. I exchanged a few notes with the founder, Rachel Schneider , and her team to highlight their offerings, the traction they are getting, and their plans. Following is a summary of the discussions.?

What employee and employer needs does your company address??

Employee needs that our company addresses:?

• Employees need access to a larger financial safety net: they struggle financially and find it hard to afford even basic living expenses, and their financial stress is only exacerbated when facing an unexpected emergency.

• Employees need companies that care about their financial lives:? an employee relief fund signals to employees, both present and future, that a company cares about their financial well-being.

• Employees need mechanisms to lower their stress: 3 in 4 workers are financially stressed, and not only is it impacting their bank account and work, but it's taking a toll on their overall health and personal relationships, a financial lifeline, like an emergency relief fund, can be a welcome stress relief that improves their quality of life.

Employer needs that our company addresses:?

• Employers need tools to help attract and retain top talent: Workers, especially young Gen Z workers, are increasingly looking to work for companies that are invested in supporting their financial well-being. And they're not afraid to choose or move on to a different company that offers something better.

• Employers need to address productivity loss: financially stressed employees are distracted and spend work time addressing financial issues -- 9+ hours/week according to a recent SoFi at Work Study -- and it's impacting the bottom line. It's estimated that companies lose $4.7 billion/week in productivity due to employees dealing with financial stress.

• Employers need ways to improve employee engagement: giving employees access to a dignified, equitable solution to address their financial struggles, along with the ability to donate to help colleagues in need, fosters a sense of trust and community in the workplace.

What are the offerings, and how do they work?

We currently offer an employee relief solution that hosts a streamlined application to request and donate money into a charitable fund available to employees who experience financial burdens due to an unexpected emergency, like a natural disaster, medical issue, death in the family, etc. We work with companies to seed their fund, set up grant parameters (i.e., what emergencies are applicable, individual grant limits, and eligibility requirements), and help them with fundraising/donation campaigns to grow their fund over time. Once set up, an employee goes to their own company's application site, goes through our quick application process, and submits the required documentation to be reviewed by our grant management specialists. Once approved, the employee receives his or her grant money into an identified account to access within 48 hours.

What is your market differentiation???

Canary's solution provides the fastest path to financial relief for workers at companies of any size. They work closely with HR teams to design parameters for their relief fund and quickly launch a white-labeled site for applications and donations. Once applications are received, our team of grant specialists reviews them within 48 hours and disburses the grant money within 48 hours of approval, meaning employees in financial distress can access the money they need the same week they apply for funds.?

When did the company start, and how has the market traction been so far?

Canary started in 2019 and saw initial traction with clients in 2020 as a helpful response to the financial stresses put on employees during the COVID-19 pandemic. As the years progressed, we saw great market traction from small businesses and home healthcare companies (many of which are not big enough to work with any of our competitors). In 2023, we continued to see strong interest from small businesses and gained significant traction with mid-to-large size employers looking to implement an employee relief fund at their company.

Who are the investors, and what is your long-term vision??

Investors past and present include Capital One, Marguerite Casey Foundation, Restive Ventures, Sorensen Impact Foundation, Propel, and several angel investors. Canary strives to connect the latest technology and payment innovations to the innate and enduring human desire to help each other, starting by processing emergency funds for employers and moving into other areas (we've already started working with nonprofits, investors, and other donors) to get as many people as possible the right money at the right time.?