Policy #05-3 Disbursement Priorities

Methodology

It is SOT policy to make distributions to the maximum extent possible by using local Disbursement Boards and by using existing military charitable entities, coupled with a set of disbursement priorities. It is SOT’s preference to only occasionally make direct distributions to individual recipients, unless that method is deemed best for purposes of local officials. SOT prefers to function as a revenue-generating organization, and have the functions of determination of entitlement and need performed by local Disbursement Boards and by existing military charitable entities, all based on a set of disbursement priorities.

Guiding Principal

SOT is trying to meet the worst needs first based on the Western principal of women and children first.

States

Funds generated from license plate sales within a state will follow its troops and be spent to benefit its troops and families. SOT accounts for all license plate revenue generated on a state by states basis. If a parent or spouse of a wounded soldier needs to be by his or her bedside at a military hospital out of state, or other similar circumstance, funds will be spent out of state for that purpose. Most of a state’s servicemen and servicewomen and their families are located out of state and will need help where they are located.

Plate revenue alone will not be enough to meet the troops’ needs. SOT also generates charitable revenues nationwide from other sources such as fundraisers, apparel, accessories, bumper stickers, an annual chopper build, fundraisers, concerts, donations, and the like. These general charitable revenues follow the troops and their families’ needs regardless of which state they are from or where they happen to be then located. The funds from all of these other revenue centers will augment the state’s plate revenue to meet the troops’ needs.

Recipient Classes, Ranked by Priority of Funds

1. Families of troops serving, then,

2. Families of troops who are killed or injured

a. Families with children, then

b. Spouse without children, then

3. Troops who are injured.

Generally, funds will first be disbursed for Classes 1 and 2, and then for Class 3 based on funds availability.

Needs to be ranked

• Disbursements for non-economic losses such as pain and suffering are not contemplated or permitted.
• College assistance based on age. Some children are 17 years old and need assistance in a year. Others are only 10 and will not need assistance for years.
• Gap mortgage payments on home (there is a death benefit; but nothing immediate if substantially injured)
• SOT may examine the purchase of blocks of transferable Prepaid College 529 Program units to lock in future education at today’s costs; these will be allocated as needed over the years; this will cost some early money that might be used elsewhere, but will benefit later with better financial-benefit performance of this nonprofit.

Modifiers

• Whether the family of an injured troop receives any prompt monetary benefit as does the family of a troop who is killed, such that the latter family has some breathing room, while the former family might need financial help first.
• Parent deceased.
• Parent disabled.
• Temporary, permanent.
• Total, partial.
• Rehab period, then can produce income.
• Military pension for disability offset.
• Sex of surviving spouse. Earning ability, need to be with kids, and so forth.
• Collateral Sources such as:
  • Sufficiency of spouse’s income
  • Survivors' and Dependents' Educational Assistance Program
  • Montgomery G. I. Bill Educational Assistance Program
  • Life insurance
  • Trusts
  • Special state awards or education grants
  • Survivor pensions
  • Social Security Death Benefits
  • State tuition waiver programs and benefits
  • Past and future Social Security Survivor Benefits paid to children and dependent adults

Disbursement Priorities Policy as adopted by the
Board of Directors of Support Our Troops, Inc. on 9-20-2005, revised 8-25-06