Church Benevolence Policy

[CHURCH NAME] Adopted: _______________ | Last Reviewed: _______________

1. Purpose

This policy establishes guidelines for administering benevolence assistance through [Church Name] (the “Church”). It ensures that funds are distributed consistently, transparently, and in accordance with IRS requirements governing 501(c)(3) organizations.

The Church’s benevolence ministry exists to provide short-term financial assistance to individuals experiencing genuine hardship, reflecting our commitment to love and serve others in the name of Christ.

2. The Benevolence Fund

The Church maintains a designated Benevolence Fund for the purpose of providing financial assistance to qualifying individuals. All contributions to the Benevolence Fund must be undesignated — donors may not direct contributions to a specific individual or family. Contributions designated to a specific individual are not tax-deductible and will not be receipted as such.

The Church retains full discretion and control over all Benevolence Fund distributions.

3. Who Administers This Policy

A Benevolence Committee of at least two unrelated, non-related individuals is responsible for reviewing and approving all requests. No single person may approve a benevolence disbursement alone.

The Senior Pastor, staff members, and their immediate family members may not serve as sole decision-makers on any request in which they have a personal relationship with the applicant.

4. Eligibility

The Benevolence Fund exists to serve a charitable class — individuals experiencing genuine financial hardship who are unable to meet a basic need through their own resources. Assistance is available to:

• Active members and regular attendees of the Church
• Community members in demonstrated need, at the Committee’s discretion

The following individuals are not eligible to receive benevolence assistance:

• Board members, elders, deacons, or members of the finance committee, and their immediate family members (IRS Treasury Regulation 53.4958-3(b) prohibits financial benefits to disqualified persons)
• Individuals who have not submitted a completed application
• Businesses or for-profit entities

Eligibility is based on demonstrated need, not on giving history or church involvement level. Tithing records must never be consulted or considered in benevolence decisions.

5. Qualifying Needs

The Benevolence Fund is intended to address basic, essential needs, including:

• Housing (rent, mortgage payments, temporary shelter)
• Utilities (electricity, gas, water)
• Food and groceries
• Medical or dental expenses
• Transportation (car payment, repairs necessary for employment)
• Funeral or burial expenses

Requests for non-essential expenses, business needs, or ongoing financial support are generally not eligible. The Church does not provide benevolence to businesses or for-profit entities under any circumstances.

6. Application Process

All requests must be submitted in writing using the Church’s benevolence request form. The application must include:

• Applicant’s full name and contact information
• A copy of a government-issued photo ID
• A description of the need and the circumstances creating it
• Documentation of the need (unpaid bill, eviction notice, medical statement, etc.)
• Evidence that the applicant is unable to meet the need through personal resources
• The specific amount or type of assistance requested

All applications and supporting documents are kept confidential and retained for a minimum of three years.

7. Review and Approval

The Benevolence Committee will review each application and verify the need where possible (e.g., contacting the landlord to confirm unpaid rent). At least two Committee members must approve any disbursement.

Per-request limit: No single disbursement may exceed $. Annual per-person limit: No individual may receive more than $ in a 12-month period.

These limits may be waived only by a majority vote of the full Board of Elders/Directors in exceptional circumstances.

Assistance is intended to address an immediate need — not to exceed the documented amount of that need.

8. Disbursement

Whenever possible, payments will be made directly to the third-party vendor (landlord, utility company, medical provider) rather than to the individual. Direct cash payments to recipients are strongly discouraged and require additional documentation and approval.

All disbursements must be recorded including the recipient’s name, date, amount, nature of need, and approving Committee members.

9. Tax Considerations

• Non-employees: Benevolence assistance to non-employees is generally not taxable income to the recipient, provided it serves a genuine charitable need.
• Employees: Benevolence assistance to church employees is considered taxable compensation and must be included in the employee’s W-2. Churches considering formal employee hardship assistance programs should consult IRS Publication 3833.
• Vendor payments: Payments made directly to a vendor (e.g., landlord) exceeding $600 in a calendar year may require the Church to file Form 1099-MISC with that vendor.

10. Confidentiality

All benevolence requests, deliberations, and disbursements are strictly confidential. Committee members may not discuss cases outside of official Committee meetings. Applicants’ identities and circumstances must not be disclosed to the congregation.

11. Annual Review and Acknowledgment

This policy will be reviewed by the Board at least once per year. All pastoral staff, deacons, elders, and Benevolence Committee members must sign the Annual Acknowledgment upon initial adoption and at each annual review.

Annual Acknowledgment

I have received, read, and understand the Benevolence Policy of [Church Name]. I agree to comply with this policy in all benevolence decisions and to maintain strict confidentiality regarding all applicants and recipients.