Belonging circles are small, recurring groups where people talk openly about identity, background and what it's like to work where they work. Some run inside the company, and many employees also join outside peer networks built around a shared experience. Employers add these to LSAs so people can choose the community that fits them, including groups the company doesn't organize itself.
Belonging and peer community costs an LSA may cover
Eligible expenses are usually fees for joining, attending or hosting a circle or peer community.
- Membership dues for external affinity and peer networks
- Registration for community-building or inclusion conferences
- Facilitated small-group dialogue workshops
- Meeting space or refreshments for an employee-hosted circle
- Books and discussion guides for a circle's reading list
- Online peer community memberships
- Guest facilitator fees for a peer-led circle
This category is one of many; our overview of LSA eligible expenses covers the rest.
Boundaries for inclusion circle spending
- Company-run ERG programs are often paid from a central budget, so plans may exclude costs the employer already covers.
- Support groups or therapy led by licensed clinicians usually belong with the EAP or health plan.
- Membership in political organizations is commonly left out.
- Conference travel and hotels may be excluded or capped even when the registration fee is allowed.
- Plans usually make the category available to every employee rather than only members of certain groups.
Who looks for belonging and peer groups
Employees who are one of very few people with their background on a team often want peers outside their department, and sometimes outside the company. First-generation professionals, veterans moving into civilian careers, working parents and people who relocated from another country all use peer networks to trade advice. Remote staff who rarely meet colleagues join circles to feel less alone. ERG leaders use the funds for small costs, like snacks or a guest facilitator, that don't justify a formal budget request. Many employers pair it with broader programs, such as employee resource groups.
Structuring a belonging category
Add to ERG budgets, don't replace them
Use the LSA for individual choice and keep company-run programs on the central budget. Saying this plainly avoids confusion over who pays for what.
Include outside communities
Many people find belonging in associations or networks beyond work. Allowing their dues gives employees options the company can't build itself. Examples in the category description make this clearer.
Keep clinical support separate
Peer circles aren't therapy. The category description can point anyone who needs counseling to the EAP or health plan. Circles can still take on hard topics; they just aren't treatment.
Frequently asked questions
Can an LSA pay for joining a belonging or inclusion circle?
Many employers allow fees for peer networks, facilitated circles and related workshops under a social wellbeing category. What's covered depends on your plan and on whether the company already funds its own circles. Dues for outside networks are among the more common claims.
Why not just fund ERGs directly?
Most employers do both. ERG budgets pay for company-run events, while an LSA lets individuals join outside networks or attend workshops the company doesn't organize. Many employees use both.
Is a support group eligible?
Peer-led groups may be, depending on the plan. Groups run by licensed clinicians as treatment are usually mental health expenses handled through the EAP or health plan.
Can it cover a conference for underrepresented professionals?
Registration is often allowed under this category or a professional development one. Travel and lodging are more likely to be capped or excluded. Some employers also cover virtual attendance, which avoids the travel question.
LSA funds are generally treated as taxable income. Learn more about how LSA reimbursements are taxed.
This content is general information, not medical, legal, tax, or financial advice. Employer plan terms determine eligibility, and requirements may vary by location.
