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What to do with Gemach capital

Question:

My father a”h founded a gemach over 50 years ago that makes loans of a few thousand dollars. Demand has dwindled, and most of the capital is sitting in an account doing nothing. I am able to track down only a few of the descendants of the contributors. Should I be donating the remaining funds to tzedaka or a different purpose, or should I just let stay in the account? The contributors have the right to ask for the capital back, but over the years only a few have.

 

Answer:

Hello,

If the gemach is no longer functioning, or you fell that the money can be doing more in a different place, you can give the gemach money to a different gemach, and they will use the money to lend out to needy people. I personally know people who have been given a gemach from someone who had one and gave it away when it was no longer needed in the place it was. You can stipulate and have the gemach sign a contract with you, that if anyone who gave money to your gemach and wants it back that they can receive it back from them. One last point, the money should be given to a reputable, safe  gemach, so the money that was given to your father will remain in responsible hands. if you nee any recommendations, let us know.

 

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