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Should our congregation have a policy for its Good Samaritan fund?

Good Samaritan/Helping Hands fund policy

Many congregations seek to provide funds to held needy persons. The better way to handle the desire to help those in need is for the congregation to adopt a Good Samaritan or Helping Hands Fund policy, such as the sample policy below. A Good Samaritan/Helping Hands Committee should be established or, in the alternative, the function of selecting needy donees can be assigned to another existing committee of the congregation. It is important that all of the decisions be made totally independently of donor’s suggestions and on the basis of need and other objective criteria. See also IRS Publications 526 , Charitable Contributions and Special IRS Publication 3833 , Disaster Relief. If funds are raised on a case-by-case basis with specific donees in mind, it is likely that any donations made will not be tax deductible. Sometimes using a local bank or trust company to handle donations is a better alternative, especially when funds are to be raised for one particular family or for a onetime needy cause.  
The following is a sample policy that a congregation may establish. It is always important to have policies reviewed by a knowledgeable attorney or tax advisor.

Sample Policy
 
 _______________Lutheran Church, in keeping with its biblical and charitable goals, has established a Good Samaritan/Helping Hands Fund to assist persons in our community in financial need. Donors may suggest beneficiaries of the fund. However, such suggestions shall be deemed advisory rather than mandatory in nature. The administration of the fund, including all disbursements, is subject to the exclusive control and discretion of the congregation. The Congregation Council will appoint a Good Samaritan/Helping Hands Fund Committee consisting of at least three of the congregation's  members. (Or alternately the functions of the committee may be assigned to an existing congregation committee) All gifts to the Fund are gifts to the congregation and while the committee may consider suggested designations, in no event is the congregation bound to follow them. 
 
Checks should be made payable to the congregation, with a notation that the funds are to be placed in the congregation's  Good Samaritan/Helping Hands Fund.