What You Should Know About The Disaster Relief Fund

by | May 18, 2022 | Charitable Trust

How do you handle your emergencies? Answers vary amongst individuals since the incident only affects them. However, situations that affect the masses require more structured solutions. Global and country authorities enforce different initiatives to cater to these situations. A disaster relief fund ensures your country is ready to deal with emergencies more effectively.

Here’s more on what the fund is and how countries sustain the initiative.

Defining the Disaster Relief Fund

The term refers to a government initiative that involves maintaining cash for use in emergency cases. For example, following the COVID-19 outbreak, global governments and organizations channeled billions into managing its effects. The government manages the fund directly and will oversee its use during national disasters.

Typically, the central government establishes an oversight authority and validates it through an act of law. Additionally, there is no restriction on the number of funds a country can establish. For example, India disaster relief fund called the National Calamity & Contingency Fund to cater to national disasters like floods, and the Contingency Fund of India caters to unexpected government expenditure.

What Expenses Does The Fund Cover?

Relief funds cover various expenses, depending on the law act that validates it. Typically, most countries use the fund to provide the following emergency services:

• Rapid rescue services include special police units, paramedics, and naval units.
• Emergency shelter and food services.
• Emergency medical care, including personnel and equipment

Furthermore, some countries establish separate entities to deal with specific disasters. As such, there is more accountability for the fund.

Where Does The Money Come From?

The government usually allocates a percentage of the national budget to finance the fund. Additionally, the percentage allocation can vary depending on the effectiveness of disaster prevention mechanisms. Other sources of funding include direct donations from individuals and institutions. Furthermore, the fund’s management agency engages in revenue-generating opportunities, such as licensing fees and certification services.
Find out how you can contribute to your country’s relief efforts by checking official websites—every donation counts.

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