Rabbi's Discretionary Fund Policy
Description and Purpose:
The Rabbi’s Discretionary Fund (RDF) of Or Shalom Jewish Community is a fund owned by the congregation, but disbursements from the RDF are to be made at the sole discretion of the congregation’s Rabbi, subject only to the restrictions in this policy. The purpose of the RDF is to support congregants in need and other individuals or families in need, other charitable organizations, and congregational activities that the Rabbi believes need additional funding beyond the regular congregational budget. Examples of uses of the Rabbi’s Discretionary fund include: helping a congregant cover unexpected and unaffordable medical bills, helping cover funeral expenses if a family cannot afford, donating to a non-profit of their choice aligned with their values, or the running of an emergent program for the synagogue not originally budgeted in the congregational budget but necessary due to changing needs.
Confidentiality:
Because disbursements from the RDF often address the personal and private lives of those in need, confidentiality is imperative. People need to know that, in approaching the Rabbi to discuss personal needs, their privacy will be protected.
The congregation’s treasurer has access to the bank records for the RDF and will periodically review payments from the RDF to ensure that the RDF is being used in accordance with this policy and prevailing tax laws. The congregation’s treasurer will not disclose to the congregation’s board or anyone else the recipients of payments from the RDF but may report to the congregation’s board and the congregation the amount of money available in the RDF account.
Donations to the RDF
Members and others may make donations designated for the congregation’s RDF.
The RDF will be a separate checking account. Checks must be made payable to Or Shalom Jewish Community, with “Rabbi’s Discretionary Fund” in the memo line. Checks made payable to the congregation and designated for the RDF, or Shulcloud donations designated to the RDF, will be deposited directly into the RDF checking account.
Donors to the RDF may not specify the specific individuals or families to receive payments from the RDF, as such earmarked contributions would be inconsistent with the tax-deductible status under Section 501(c)(3) of the Internal Revenue Code of contributions to the RDF. Furthermore, if donors wish to provide financial support to specific organizations, events, or projects, then they should do so directly rather than asking the Rabbi to use the RDF as a “pass-through” fund to handle the transaction.
As a general rule, there will be no allocations to the RDF in the congregation’s annual budget. Instead, the RDF will be funded by donations designated for the RDF. When a rabbi transitions out of being Or Shalom’s rabbi, the funds remaining in the RDF will be transferred to the general fund. When a new rabbi begins their tenure at Or Shalom, the Executive Committee will determine a one-time infusion to get the new fund started.
Procedures for Disbursements and Record Keeping Rules
The Rabbi will have a checkbook and a debit card that they may use to make disbursements from the RDF. Unless the Rabbi becomes incapacitated or dies, no other person may make disbursements from the RDF.
The Rabbi will keep a record of all disbursements from the RDF but should not disclose the names of recipients. In the records, the Rabbi should indicate the nature of the disbursement (e.g., emergency shelter for a family, payment of utility or medical bill, legal consultation for a member, donation to a charitable cause).
The Rabbi will make an annual report to the congregation’s board, normally in May of each year, of the number of disbursements since the last such report, the categories describing the nature of the disbursements, the total amount disbursed, and the number of individuals who were assisted.
When providing for a service (e.g., addiction counseling) or paying a vendor (e.g., a utility such as PG&E), the Rabbi should issue an RDF check payable to the agency, professional, or vendor, and not directly to the person in need. This helps ensure that the money is going to the right place, and it avoids potential tax liability for the needy individual receiving assistance. For similar reasons, it is preferable not to convert RDF funds into cash or cash equivalents such as gift cards.
The Rabbi will make a good faith effort to maintain the tax-deductible status under Section 501(c)(3) of contributions to the congregation, including the RDF. As part of this effort, the Rabbi will not permit donors to the RDF to designate specific individuals or families who are to receive disbursements from the RDF. The congregation understands that the Rabbi is not a professional expert on tax law.
The Rabbi will not make any disbursements from the RDF that exceed the current balance available in the separate checking account established for the RDF.
Uses of RDF
Disbursements from the RDF are to be made in a manner and used for purposes in compliance with all applicable laws.
RDF funds are to be used for the benefit of individuals in need or of charitable organizations in a manner that is consistent with the values, mission, and guiding principles of the congregation.
The Rabbi may designate a disbursement from the RDF made on behalf of an individual or family in need as either a loan or a gift. The congregation understands that designation as a loan may be done to preserve the dignity of a needy individual or family; the Rabbi incurs no liability of any kind if a loan from the RDF is not repaid.
No RDF funds may be used to pay personal expenses of, or to provide compensation to, the Rabbi or the Rabbi’s family.
No RDF funds may be used in situations where a conflict of interest or self- dealing or the appearance thereof exists.
No RDF funds may be used to support or oppose any candidate for public office, to support or oppose any referendum campaign, or for partisan political purposes.
RDF funds are not intended to cover routine operating expenses of the congregation, which should be paid for out of the general congregation budget. Similarly, expenses incurred by the Rabbi on behalf of the congregation as a part of her or his job should be paid for out of the general congregation budget rather than the RDF. The Rabbi may, however, use the RDF to support congregational activities. Books or other durable items purchased for the congregation with RDF funds will remain with Or Shalom should the Rabbi at some point leave.
