Use of available funds to loan to a gemach

Question:

BH, I have some funds available. I'd like to put them to good use and am considering loaning them to a gemach.
1. I'm in Israel, and the funds are in dollars. Can I stipulate that when I call in the loan, it be returned in dollars?

2. Is there any issue with getting it back in shekels if the exchange rate has improved in favor of the dollar?
3. I assume lending to a local gemach is preferred. There are small-loan, wedding-assistance, etc., gemachim. Is there a preference for which type of gemach to lend to?
4. Is the zechus the same whether lending to 1 or more gemachim?

Answer:

Hello,

Giving money to a gemach is a great idea. In fact, the Chofetz Chaim writes that a person should use a third of one’s maaser money to open a gemach or give it to one. The reason is that the money generates multiple mitzvos every time it is lent out.

1. You can give dollars to a gemach that lends dollars, as long as the gemach has dollars available.
2. The gemach can pay you back in dollars when you want the money back. If you would like to exchange the dollars then, you may. This means that after you have gotten your dollars back, the gemach can exchange them for you at the current rate. The gemach may also exchange the dollars for you at today’s rate and then pay you back in shekels (which would be at today’s dollar rate). What you may not do is stipulate to the gemach that you get the higher rate, regardless. If it goes up, you want shekels like the date you redeem the dollars, but if it goes down, you want the rate when you gave them the dollars.
3. Any money given to a gemach is good, and it is all chesed. However, there is a preference to give to a gemach that will help support people learning Torah.
4. The mere fact that you are lending it to a gemach means that the money will be lent to numerous people at the same time. Therefore, I don’t see any difference between lending to multiple gemachim, unless you want to do chesed in different areas, such as supporting Torah families and hachnosas kallah, etc.

Best wishes