Contributions for Disasters

Accountability for funds received and expended for disaster relief, including overhead amounts charged to the funds, should include the following best practices:

  • Funds raised for a particular disaster should be spent in the geographic region impacted by the disaster and within a reasonable period of time.
  • If a ministry accepting funds for a disaster does not implement the disaster relief (e.g., the ministry will merely be forwarding the funds to another ministry), the following practices should be observed:
    • The ministry initially receiving the gifts should, in the spirit of transparency, disclose the fact that it is not an implementing ministry.
    • Administrative overhead charged by the ministry initially receiving the gifts should not exceed the actual costs related to handling these specific gifts (e.g., it is inappropriate to use the ministry’s overall overhead rate in determining the overhead to be charged to disaster gifts).

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.