Kansas Department of Health & Environment

Kansas Family Medical Assistance

Manual (KFMAM)

Eligibility Policy - 10/25/2021

05000 >>> 05400 >>> 5408

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5408 Loans, Gifts, and Contributions - Cash gifts, Loans, Charitable Donations, and Deemed Sponsor income are exempt.

5408.01 Loans - All loans, including loans from private individuals as well as commercial institutions, including deferred educational loans, shall be exempted from household income. Monies received from reverse mortgages are treated as loans, even if payments are regular and predictable.
When verifying that income is exempt as a loan, a legally binding agreement is not required. A simple statement signed by both parties that indicates that the payment is a loan and must be repaid shall be sufficient verification. However, if the household receives payments on a recurrent or regular basis from the same source but claims the payments are loans, the provider of the loans may be required to sign a statement that indicates that repayments are being made or that payments will be made in accordance with an established repayment schedule.

5408.02 Social Fundraising Accounts - Income received from a social fundraising account, such as a Go Fund Me account may be exempt as income depending on the purpose and intent of the account. Contributions received are exempt when the individual donating does not expect to receive anything in return for their contribution. Contributions are also exempt when the payment is made as an investment and the individual expects to receive a return on their investment.

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