Benevolence Fund

Purpose

The benevolence fund helps meet the basic needs of CrossRoads Church of Norfolk members and attendees who are facing a financial crisis. Limited assistance may also be considered for individuals who do not attend the church. Assistance is short-term and interim, with top priority given to those who have no resource other than their church.

Our goal in giving is to show generosity while encouraging personal responsibility.

Oversight and Accountability

The Elders hold ultimate responsibility and accountability for the benevolence fund. The CR Cares Chairperson, under the Elders’ authority, handles day-to-day administration in coordination with the church administrator.

Contributions to the Fund

Gifts to the benevolence fund are tax-deductible only when the church retains full control over how they are used. Contributions designated for a specific individual or family are not tax-deductible and cannot be accepted as gifts to the fund. Donors who wish to help a particular person should be encouraged to give to the fund without restriction, leaving all distribution decisions to the Elders.

General Guidelines

The fund is a source of last resort, meant for those who have already explored other sources of help (family, friends, savings, or investments). It is temporary help during a crisis.

Assistance is normally a one-time gift per year. In unusual circumstances, the Elders may approve help more than once in a year. Under no circumstances is a gift from the fund a loan.

In accordance with Scripture, priority is given to widows in financial need. Single mothers and women whose husbands have abandoned or divorced them are also given priority.

A recipient who later wishes to give to the church should be encouraged to give to the general fund.

Those requesting assistance must be willing to receive financial counseling. The Elders will not provide help where, in their judgment, it would reinforce irresponsible behavior.

Criteria

The fund meets basic needs, normally defined as:

• Primary lodging (mortgage/rent)
• Utilities (electric/water/gas/sewer/trash)
• Necessary medical services
• Food

Assistance is generally given in small amounts to help as many people as possible.

Financial Limits & Budget Rules

To maintain financial stewardship, the committee will operate under the following tiered approval limits:

• Up to $50 (Low Tier): Can be approved by the Church Administrator alone for rapid response.
• $51 to $500 (Standard Tier): Requires the approval of at least one elder.
• Over $500 (High Tier): Requires written sign-off from the full Elder Board
• Annual Maximum: No household may receive more than $2,500 in total assistance within a single calendar year.

Counseling

The benevolence fund may be used to pay for professional counseling for congregants who cannot otherwise afford it.

• All counseling paid from the fund must be approved in advance by the Elders or their designee.
• Benevolence Funds may not be used to pay for counseling for staff members.

Recipients

In order of priority, recipients of funds disbursed from the benevolence fund are at the direction of the Elders and are as follows:

• Church members
• Regular attendees
• Sister congregations
• Ministries and Christian agencies that serve the same needs but provide services the church does not
• Shelter programs hosted by the church (e.g., Winter Shelter)
• Food Assistance Programs (e.g., Pop-Up Church, Food Banks, etc)
• Members of the community

Procedures for Disbursement

Source of Request

The person requesting help completes a Benevolence Request Form; the church administrator or CR Cares Chairperson may assist as needed. Any church staff member or Elder may also submit a request on behalf of a congregant.

To ensure compliance with IRS regulations, the church administrator must approve any benevolence request for a staff member in advance, and benevolence gifts to employees are given only in extraordinary circumstances. Any benevolence payment to a church employee is treated as taxable wages and will be reported on the employee’s Form W-2. Benevolence funds are never used as ordinary compensation.

Processing the Request

• The completed form is returned to the CR Cares Chairperson or church administrator, with documentation of need (e.g., a past-due bill).
• The CR Cares Chairperson and church administrator review the request, in a meeting or by phone, and reach a decision.
• Individuals who do not attend CrossRoads Church are first referred to their home church; those who attend no church are referred to an appropriate community agency.
• The person making the request is informed of the decision.
• The church maintains records of each recipient’s name and address, the amount given, and the purpose, along with any relationship between the recipient and the pastor, staff, or officers of CrossRoads Church, as required by IRS regulations.
• Whenever possible, payment is made directly to vendors, homeowners associations, and the like rather than to the individual.

Limitations

These guidelines direct the distribution of benevolence funds. They are not exhaustive, and the Board of Elders, Lead Pastor, or church administrator may make exceptions in special cases.

• Benevolence is intended for emergency food and shelter needs, including electricity, gas, water, and mortgage or rent. A past-due bill is normally expected as evidence of an emergency.
• Cable and streaming services are not emergency needs and are generally not covered.
• Assistance may be provided for a telephone bill or a cell phone bill, but not both.
• No cash gifts are given as financial assistance.
• An applicant must never have access to a purchasing cardholder’s card number.
• Staff members, small groups, and others who provide financial assistance on their own are not reimbursed.

Relevant IRS Publications:

• Publication 1828 — Tax Guide for Churches and Religious Organizations
• Publication 1771 — Charitable Contributions: Substantiation and Disclosure
• Publication 4221-PC — Compliance Guide for 501(c)(3) Public Charities