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Add'l info
Passed on January 15, 2005. 9 Yes votes, and 1 No.
Additional Info:
Needy or distressed test:
Generally, a disaster relief or emergency hardship
organization must make a specific assessment that a
recipient of aid is financially or otherwise in need.
Individuals do not have to be totally destitute to
be financially needy; they may merely lack the
resources to obtain basic necessities.
Under established rules, charitable funds cannot be
distributed to individuals merely because they are
victims of a disaster. Therefore, an organization's
decision about how its funds will be distributed must
be based on an objective evaluation of the victim's needs
at the time the grant is made. The scope of the
assessment required to support the need for assistance
may vary depending upon the circumstances.
Disaster relief or emergency hardship organizations
may provide assistance in the form of funds, services,
or goods to ensure that victims have the basic
necessities, such as food, clothing, housing
(including repairs), transportation, and medical
assistance (including psychological counseling). The
type of aid that is appropriate depends on the
individual's needs and resources.
For example, immediately following a devastating flood,
a family may be in need of food, clothing, and shelter,
regardless of their financial resources. However, they
may not require long-term assistance if they have
adequate financial resources. Individuals who are
financially needy or otherwise distressed are appropriate
recipients of charity. Financial need and/or distress
may arise through a variety of circumstances.
Examples include individuals who are:
* Temporarily in need of food or shelter when stranded,
injured, or lost because of a disaster
* Temporarily unable to be self-sufficient as a result
of a sudden and severe personal or family crisis, such
as victims of crimes of violence or physical abuse
* In need of long-term assistance for housing, childcare,
or educational expense because of a disaster
* In need of counseling because of trauma experienced as
a result of a disaster or crime
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Often charitable organizations (or programs by existing
charities) are established as a result of a particular
disaster where both short-term and long-term assistance
might be required.
The following types of assistance, if based on individual
need, would be consistent with charitable purposes:
* Assistance to allow a surviving spouse with young
children to remain at home with the children
to maintain the psychological well-being of the
entire family
* Assistance with elementary and secondary school tuition
and higher education costs to permit a child to attend
a school
* Assistance with rent, mortgage payments, or
car loans to prevent loss of a primary home or
transportation that would cause additional trauma to
families already suffering
* Travel costs for family members to attend funerals and
to provide comfort to survivors
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An organization must maintain adequate records that
demonstrate the victims' needs for the assistance provided.
These records must also show that the organization's
payments further charitable purposes. Thus, records
are required when aid is provided to individuals based
on a specific assessment of need, as described
above. Documentation should include:
* A complete description of the assistance
* The purpose for which the aid was given
* The charity's objective criteria for disbursing
assistance under each program
* How the recipients were selected
* The name, address, and amount distributed to each
recipient
* Any relationship between a recipient and officers,
directors, or key employees of or substantial
contributors to the charitable organization
A charitable organization that is distributing
short-term emergency assistance would only be expected
to maintain records such as the type of assistance
provided, criteria for disbursing assistance, date,
place, estimated number of victims assisted
(individual names and addresses are not required),
charitable purpose intended to be accomplished,
and the cost of the aid. Examples of such short-term
emergency aid would include blankets, hot meals,
electric fans, or coats, hats, and gloves.
An organization that is distributing longer-term
aid should keep the above more-detailed records.
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