Dear Rabbi
We began an interest free loan fund. People donate to us for their money to be used in the fund. In the event – as happens – a person is unable to pay the loan back (and the organization are prepared to forego the loan seeing that clearly that it will never be returned – Beis Din involved or not), does the organization have an obligation to return money back to a donor with the assumption that he would have wanted his money in the loan fund ie. and since it is no longer in the fund but has instead been “stolen” it is no longer achieving the purpose he wanted for it?
Or, do we say that the original donor to the loan fund knows that sometimes a loan will not be returned, that the donor is himself Mochel on the funds and would never require the organization to return his donated amount back to him?
The instance above might actually be clear that the organization is currently aware of the donor to the fund in a particular example and actually know from where particular funds came, to know that it was actually his money that was lost.
Many thanks.
Answer:
A donor to a loan fund does not mean to donate to a particular loan (for a particular individual), but rather to donate to the general ‘pool’ of moneys that are used for lending to different individuals. Even if his money is used for a particular loan, there is no ‘specific’ money involved, and his donation is not considered as being used for any specific individual.
The risk that some individuals will not pay, and some money will therefore be lost, is known to donors, and the assumption is that the fund will only forego small amounts, and ensure its continued ability to give loans.
There is therefore no need to notify donors of this practice, though the fund has an obligation to ensure its continue ‘liquidity’ and ability to provide loans, and must consider carefully before foregoing any debt (a debt can be extended, rather than foregone).
