DATE: November 30, 2017

TYPE: Policy Memorandum

SUBJECT: Contribution Policy for Services 

Under the Area Plan Contract

NUMBER: 2017-13, I-13

SUPERSEDES: 84-4, III-2 

DISTRIBUTION CODE: I

EFFECTIVE DATE: Immediately

APPLICABILITY: Executive Directors, Area Agencies on Aging

BACKGROUND: The Older Americans Act, since its inception, emphasizes the regard for dignity of older 

Americans by requiring that opportunities are provided to them to participate in the planning 

and administering of aging programs; as well as to contribute to the cost of services.

PURPOSE: To clarify the requirement that all participants shall be provided with an opportunity to 

voluntary contribute to the cost of each service under the Area Plan Contract (APC). In 1984 this 

requirement was expanded to all services, regardless of funding stream, under the APC. The 

only the exception is Adult Protective Services. 

POLICY: 1. Each Area Agency on Aging (AAA) shall:

• Use the State contribution policy for services under the Area Plan Contract, or

• Have written policies and procedures regarding contributions for services under the 

Area Plan Contract that are in accordance with the State policy.

• Have a copy of this policy must be on file.

• Require all grantees/sub grantees to use the State or AAA’s contribution policy, or;

• Ensure that each grantee/sub grantee contribution policy and procedure is in 

accordance with the AAA’s established policy.

• Post the contribution policy where it is easily accessible to participants.

2. Regardless of funding stream or service, providers are prohibited from charging or cost 

sharing for any service or program funded under the Area Plan Contract.

3. As required by the Older Americans Act Section 315. CONSUMER CONTRIBUTIONS. The Area 

Agency on Aging (AAA) shall ensure that each service provider will:

• Inform and provide each participant with an opportunity to voluntarily contribute to 

the cost of the service;

• Clearly inform each participant that there is no obligation to contribute and that the 

contribution is purely voluntary;
• Protect the privacy and confidentiality of each participant with respect to the 

participant’s contribution or lack of contribution;

• Establish appropriate procedures to safeguard and account for all contributions; 

• Use and record all contributions in the period they are collected; and

• Use all collected contributions to expand the service (provide additional units of service 

to additional participants in need) for which the contributions were give and to 

supplement (not supplant) funds received under this Act.

PROCEDURE: 1. Establish a suggested contribution amount (may be a range or up to the total cost of the 

service).

2. Inform the service participant that:

I. They may voluntarily contribute toward the cost of the service;

II. There is no obligation to contribute;

III. Their privacy and confidentiality with respect to their contribution or lack of 

contribution will be protected; and 

IV. Services will not be affected by the ability or lack of ability to contribute.

3. This information shall be provided in writing, in a letter or brochure, as well as verbally. In 

addition, each service provider shall post a sign (as appropriate) which states the suggested 

donation and that no participant shall be denied services due to their inability to donate. 

4. Participants may be reminded that contributions are accepted throughout the year.

5. Handling monetary contributions

• Contributions are made anonymously in a confidential manner. Non-coded envelopes 

may be placed in a slotted lock box, handed to a staff person or mailed to the service 

provider

• As appropriate, a monthly or quarterly statement may be given to the participant; 

stating the number of units of service provided and the suggested contribution. 

(sample letter attached)

• Cash donations shall always be accepted.

• Two or more bonded staff shall count the contributions daily.

• Deposits will be made within 48 hours of receiving the contributions into accounts 

specified by the designated fiscal officer.

• All income is to be shown as part of the Area Plan Contract and Service Providers' 

Contracts. Income shall be utilized on a first-in, first-out basis. There is no carry-over 

of program income from one grant year to another.

• If income exceeds the budget amount it shall be used to further reduce the federal, 

state or county funds allocated regardless of the budget percentages shown in the 

grant.

6. Contributions from multiple services shall not be co-mingled. Contributions shall be used to 

provide the additional service for which the contribution was collected.

Questions related to this Service Taxonomy may be directed to Tina Zsenak at tina.zsenak@dhs.state.nj.us or 

609-588-6788. 
SAMPLE

(Letterhead Here)

Date:

(Participant Name and Address Here)

Dear (Participant Name Here):

This letter is a reminder that donations are accepted for Name of Service.

Donations from participants in the program are combined with federal, state, and local funding to provide this 

service. All donations are confidential and voluntary. All collected donations are used to expand this service to 

individuals in need. No eligible person will be denied service due to inability to make a donation. 

The actual cost of providing each Name of Service is $ _______

Month/Year Number of Service Units Suggested Donation

Any donation you make is greatly appreciated. It is a pleasure to serve you! Please call the office if you have 

any questions or would like information about other programs and services. 

Sincerely,

(Your Name and Title Here)

___________________________________________________________________________________________

Please detach bottom portion and send with your donation.

Make checks payable to: (Name Here)

Mail to: (Name and Address Here)

Donation Given: ___________________

Month: _______________

Year: _________________
Comments to Draft Policy

Comment:

Because of the formal nature of the sample letter; frail clients may feel it is a bill rather than a request for a 

donation

Response:

Based on this comment, the letter was revised. This letter is provided as a sample; it is not mandatory to use this 

method. Many AAAs find this to be an effective method of collecting donations, and some clients or their 

caretakers prefer it.

Comment:

We do not permit accepting cash donations except for the Nutrition Program.

Response:

Cash donations shall always be accepted. Clients may not have any other method of providing monetary 

donations if cash is not accepted.