Several charities that have raised millions for families of cops and firefighters killed on Sept. 11 have begun lobbying to cut the red tape that restricts the distribution of donations.
The “discussions” with several legislators are aimed at getting a change in the IRS code to allow equal distribution of the cash to the families of the victims, a source said.
Under current tax law, charities must examine the finances of affected families on a case-by-case basis. To get a cash handout, the law requires a recipient to demonstrate a “reasonable need.”
“Just because you’re the victim of a disaster doesn’t give you an entitlement to charitable gifts,” said a lawyer familiar with the funds.
The New York Firefighters 9-11 Relief Fund is one group seeking an exemption from the charity law, sources said.
The fund, started by unions representing New York’s Bravest, has raised $53 million for the families of 344 firefighters and fire officers who died helping people escape the World Trade Center.
So far, the fund has given out nearly $7 million – $20,000 to each of the families to cover immediate needs such as mortgage payments, other living expenses and funeral costs.
But officials fear they won’t be able to evenly distribute the remaining $46 million without jeopardizing the fund’s tax-exempt status.
Since families of cops and firefighters who died in the line of duty continue to receive the officer’s salary and benefits – plus more than $225,000 in death benefits – funds may be hard-pressed to find a need for charity.
“I don’t see how police and firefighters’ survivors could be classified as needy,” said Joseph Mancini, a spokesman for the New York Patrolmen’s Benevolent Association.
“They’ll be taken care of for the rest of their lives.”
But others said college tuition, medical expenses not covered by insurance, job training for widows returning to the workplace and child-care costs may still burden families.
Mayor Giuliani’s Twin Towers Fund – created for the families of firefighters and officers – has collected $71 million.
Nothing has been distributed yet, but Larry Levy, deputy counsel to the mayor, said some money should start going out next month.
As an example of the needs which may be covered by the fund, Levy spoke of one family with a child who needed surgery. Before Sept. 11, the family chose to go to a highly regarded surgeon who wasn’t covered by insurance, he said.
“Now they can’t afford that doctor. That’s a situation where the fund would pick up the slack,” Levy said.