The fund will be run by the Cumbria Community Foundation (CCF), which is Dovenby-based charity which gives grants to support those in need.
It will be available for all refugees in Cumbria, not solely those from Ukraine.
The mutual added that money from the fund will be available to Cumbrian communities offering housing to Ukrainian refugees, adding that 130 families had already linked up with Ukrainian refugees to offer housing with more to come.
Over £30,000 has been raised for the Welcome Fund as Cumbrians look to support Ukrainians forced to leave their homes.
Claire Deekes, head of retail distribution at The Cumberland’s head office in Carlisle, said: “We have all watched in horror as events in Ukraine have unfolded and the desperate scenes of ordinary people fleeing for their lives.
“Many people in Cumbria want to help so we have made this donation to the Welcome Fund which will help our local communities to look after them when they arrive.”
CCF chief executive Andy Beeforth said he welcomed the donation from the Cumberland to the Welcome Fund, and that this, along with other donations from businesses and local people, would make a “huge difference”.
“We have already had a good response after highlighting the fund last week. It is an established means of supporting refugees in the county and ensures that donations will be used most effectively,” he said.
Several lenders have made donations in recent weeks, including Yorkshire Building Society donating £50,000 to the Disasters Emergency Committee and Skipton Building Society giving £50,000 to the Ukraine Humanitarian Appeal.
Paradigm added that it would match donations to support the Red Cross in Ukraine.