W000670
Monday, November 26, 2001 5:33 PM
Adoption of Rules to Govern the September 11 Victim
Compensation Program
In response to your request, attached are comments from Independent Sector
regarding Topic #6: Should Charitable Gifts Be Considered Payments from a
Collateral Source? Please feel free to contact me should you have questions
for &nsbr; &nsbr; &nsbr; &nsbr; &nsbr; or Independent Sector.
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November 26, 2001
Kenneth L. Zwick, Director
Office of Management Programs
U.S. Department of Justice, Civil Division
Main Building, Room 3140
950 Pennsylvania Avenue NW
Washington, DC 20530
Re: Adoption of Rules to Govern the September 11 Victim Compensation Program
- Topic #6: Should Charitable Gifts Be Considered Payments from a Collateral
Source
Dear Mr. Zwick:
Independent Sector is a nonprofit, nonpartisan coalition of over 700
national voluntary organizations, philanthropic foundations, and corporate
philanthropy programs, collectively representing tens of thousands of
charitable groups in every state across the nation. Our mission is to
promote, strengthen, and advance the nonprofit and philanthropic community
to foster private initiative for the public good. Many of our members have
been actively involved in supporting and delivering emergency assistance to
the victims of the September 11 terrorist attacks. They have considerable
experience in assessing the needs of individuals and families and
implementing service programs and distributing financial assistance to
ensure that those needs are met as quickly and as equitably as possible.
v
The request of the Justice Department for comments on the content of rules
governing the government's September 11 Victim Compensation Program asks
whether the definition of "collateral source" in section 402 of the Act
establishing the program can be read to exclude gifts by charitable
organizations to those injured in the September 11 tragedies and to the
families of those who lost their lives. Independent Sector believes that
charitable gifts should not be deemed to be a payment by a collateral source
and that to do so would undermine the intent of Congress to encourage
survivors to use the Victim Compensation Program in lieu of pursuing damage
awards through litigation.
We are writing now to support comments submitted by the Council on
Foundations which provide more extensive background advancing our position.
Although the Internal Revenue Service has recently issued guidance rulings
that relax some of the long-standing rules that require charities to assess
the specific financial needs of individuals or families before providing
direct financial assistance, we believe that most charities will continue to
follow a needs-based distribution policy in addressing both the short-term
and long-term benefits provided to those affected by the September 11
attacks.
We would be happy to provide additional information as you develop these
rules and regulations.
Sincerely,
Comment By:
Independent Sector
Washington, DC