Do you need assistance? Tips to read first.

If you are new to the social service or charity relief network because of a job layoff, mortgage issues or medical bills, you need to understand it can take a lot of time and effort to research, apply for and use the financial resources that can help you and your family.

But there are a lot of money-saving and money-stretching possibilities that are available for families in southeast Michigan and northwest Ohio. No, you don’t have to be financially destitute to benefit from local and regional programs and services. Each financial assistance, discount, low-interest loan, grant, holiday gift, scholarship or donation program has its own guidelines on who qualifies based on circumstances such as:

• Income levels. The cut-off points for specific programs vary widely, but are often based on a formula that is a percentage of the federal poverty guideline. A typical cutoff point is 200 percent of poverty level, which, based on 2008 figures for Michigan families, would be $42,200 for a family of four.
• Number of household members and their demographics. Keep in mind that some programs are intended for children, some for college students, some for senior citizens, etc., regardless of actual income.
• Your county and state of residency. A lot of government-funded programs limit participation to who are residents of that area. And the free museum passes I’ve acquired relied on the fact that I had a Monroe County Library System card.
• Whether you are able to follow the program rules. Application and renewal deadlines are particularly important. But you may also find situations where you have to meet with a caseworker, keep up with a payment schedule, or attend a workshop.
• Whether you fit the criteria of “ideal candidate”. This is particularly applicable in situations such as scholarships where there will not be enough funding to honor all requests.
• Or just the quirk of timing of when those funds or products are available. Do you remember how fast the “cash for clunkers” funding ran out?

That’s why one family might get help with a past-due utility bill, another will get a Christmas food basket, someone else will qualify for low-cost rental housing, someone else gets a tax credit, one family got summer camp fees waived, someone else picked up a free bag of school supplies, etc.

Don’t get too frustrated. If one resource isn’t available to your family for whatever reason, you may still be eligible for something else. If your budget is short by $100 a month, does it really matter where that $100 a month comes from? No. You just want to get those bills paid. So let’s figure out how to do that.

Here are some tips on how to navigate the financial assistance network:

1. You need written documentation to apply for almost any financial need-based program. Before you start that application process, go find the birth certificates, marriage licenses, divorce / custody paperwork, military ID cards if applicable, Social Security numbers, and driver’s licenses or state ID cards for everyone in the family. Do you also have your tax records for the past two or three years, along with proof of current income such as pay stubs and unemployment award letters? Do you have records of child support and alimony paid out or paid into the household? Do you have a list of all of your monthly bills and the minimum payments for each of those accounts? Do you have records of recent dependent care bills? Do you have a copy of the current lease or proof of home ownership? If you are missing a critical identity or financial document, or need to crunch some numbers, resolve that problem immediately. (The more accurate and complete your application paperwork is, the more likely you will be approved for whatever programs your family qualifies for.)
2. Now that you have all that data, start with the Michigan Assistance and Referral Service program. This on-line system will let Michigan residents find out for themselves whether they would be eligible for state assistance programs such as medical, food and day care assistance. You’ll save a lot of time and headaches if you know from the start which state programs to file applications for — and which ones you don’t qualify for.
3. Expand your search for information and assistance. Pay very close attention to the public service announcements that are publicized through your local newspapers, TV stations and community web sites. Some events, programs, services and offers  have strict deadlines or short application seasons and you must follow up quickly with a phone call, visit or e-mail if you want to participate. (If you cancel your newspaper subscription or Internet service because of struggling finances, then spend an hour or two a week at your library branch with the specific purpose of reading the local newspapers and looking up community web sites.)
4. Be aware that special circumstances are sometimes the best advantage for working class and middle-class families seeking financial help. The classic example is college scholarships, where good grades, test scores and community service hours help students earn hundreds or thousands of dollars regardless of income. Another example is those of you who are eligible for military ID cards, which give you access to military discounts and family assistance programs. Use every such resource that is available to your family. For some families, these special resources will be the only “breaks” you can get on household expenses.
5. Sometimes you have to write to a lender, college or agency to explain a change in financial circumstances. Here are tips from the Michigan State University Cooperative Extension Service on How to write a hardship letter.
6. Show good manners and a cooperative attitude. Send written or e-mailed thank-you notes to your sponsors or those who helped you through the application or review process. There also are some financial assistance programs that have requirements or expectations that you will volunteer on their behalf or for a specified cause, be a guest of honor at a scholarship awards program, meet regularly with a case worker, attend committee meetings, submit a photo to be placed in the newspaper with a publicity announcement, etc. If you have a problem with any of the requirements or expectations, do not accept the funds. Leave that money for someone who is willing and able to follow through.
7. Learn from friends, relatives, frugal living and personal finance experts on how to live frugally. Charity donors, public agencies and grant writers do not want their financial resources to be wasted on expenses they consider to be frivolous. You can limit or postpone your need for assistance, and will likely find a more sympathetic response when you do ask for help, when you lead an overall frugal lifestyle.

I also have a post on How to stay organized when seeking assistance.

Last updated Sept. 12, 2009.