How does money need to be allocated when it is raised through a benefit for a family in hardship?

Question

If a family has a benefit to raise money to help them through a financial hardship, are there some legal guidelines as to HOW that money needs to be spent? This is a family that is also waiting to see if they will qualify Social Security Disability benefits and they don't want to affect their eligibility. Anyone know how this should work?

Answer 1

That's a question you need to ask the Social Security Administration in your area.  I'm really not sure, so I don't want to give you a wrong answer.  

Answer 2

If the money is raised through a benefit such as bake sales or church fundraisers, and comes from many contributors, it is considered a gift, and would have no necessary allocation or tax liabilityy.  It would have no bearing on the SSDI eligibilty because it is not EARNED income.