National Compassion Fund How to Apply

After a mass casualty event, public donations pour in through GoFundMe pages, community foundations, and dedicated victim funds. The National Compassion Fund (NCF) may administer an event-specific fund when one is established. Here's how that process works — including the parts nobody explains until you're already in the middle of it.

How the NCF Decides Who Gets What

The NCF doesn't distribute money based on financial need. Distributions are calculated using objective, category-based criteria that apply equally to every affected family:

• Deceased victims — families of those who died receive the largest distributions
• Hospitalized with overnight stay — survivors who required inpatient medical treatment
• Outpatient treatment — survivors who received medical care but weren't admitted
• Present at the scene — individuals who were physically present during the event but weren't physically injured

The exact dollar amounts within each category depend on the total funds raised. The NCF calculates distributions after a public comment period where community members can weigh in on the proposed allocation framework. Importantly, receiving money from other sources (insurance, CVC, GoFundMe) does not reduce your NCF distribution.

The Application Process

Once an NCF is activated for a specific event:

1. An administrator is appointed — usually a victim compensation expert with experience managing large-scale distributions
2. A protocol is published detailing eligibility categories, documentation requirements, and timelines
3. Applications open for the window stated in that event's published protocol
4. Families submit documentation proving their relationship to the deceased or their presence at the event (police reports, hospital records, medical examiner correspondence)
5. Distributions are calculated and a proposed plan is published for public comment
6. Payments are issued after the comment period closes

The process and payment schedule depend on the event-specific protocol, and distributions can take months after applications open. Check that protocol for the current dates; the fund is not an immediate source of money.

The Intestacy Problem

This is where many families get stuck. If the deceased died without a valid will — which is common when a young, healthy person is killed unexpectedly — the NCF requires the applicant to submit a proposed distribution plan that aligns with the state's intestacy laws. Intestacy laws dictate how assets pass when there's no will, and they follow strict hierarchies: spouse, then children, then parents, then siblings.

State intestacy rules determine who inherits and in what shares; the order depends on the state and surviving relatives. Unmarried partners, fiancés, and close friends may be excluded under those rules unless the fund administrator exercises any discretion allowed by the protocol.

The Consent Requirement

Every legal heir must sign a notarized consent form agreeing to how the money will be distributed. One hundred percent agreement is required. If even one heir objects — a situation that arises more often than you'd expect, especially in blended families or estranged relationships — the NCF deposits the entire distribution with the local probate court. The money sits in escrow until the family resolves the dispute through mediation or litigation.

This process depletes the distribution through legal fees and can take years to resolve. If there's any possibility of family disagreement, retain a probate attorney before the consent forms are circulated.

GoFundMe and Crowdfunding Tax Rules

Separate from the NCF, many families receive direct donations through crowdfunding platforms. The tax treatment is straightforward but frequently misunderstood:

For recipients: Crowdfunding contributions may be gifts when donors give out of detached generosity without expecting anything in return; gifts generally aren't included in the recipient's gross income. A campaign is not automatically tax-exempt based only on the platform or label, and you may receive a Form 1099-K. Receiving that form does not by itself determine whether the funds are taxable. Keep records and ask a tax professional about your campaign.

For organizers: If you organized a campaign on behalf of a family and the payment processor issues a 1099-K (triggered by transaction volume thresholds), you need records proving 100% of the funds were transferred to the beneficiary. Keep transfer receipts for at least three years.

For donors: Personal gifts to individuals through crowdfunding are not tax-deductible charitable donations. If a single donor gives more than $19,000 to one person in 2026, the donor (not the recipient) generally must file a Form 709 Gift Tax Return.

IRC Section 139: When a mass casualty event is declared a qualified disaster, payments received for reasonable personal, living, or funeral expenses are completely tax-free under IRC Section 139 — and the recipient doesn't need to provide receipts. This applies to employer payments, organizational grants, and some government distributions. It does not cover lost wages.

Getting Help With the Application

Victim advocates at the Family Assistance Center or your state's crime victim compensation office can help you navigate the NCF application. The After a Mass Casualty Event toolkit includes a financial claims matrix that tracks every compensation source — CVC, NCF, insurance, crowdfunding — in one place, with deadlines and documentation requirements for each.