All private donations received are distributed in full directly to the families of affected children. Since the donations were raised to help children - victims of the Beslan terror act, a family must have a child under the age of 18 (as of September 1, 2004) in order to be considered for assistance.

Families eligible for assistance are those where:

1. One or more children were seriously injured as direct result of the terror act
   (a serious injury is defined as an injury requiring hospitalization for 10 days or longer).

2. One or more children became handicapped as direct result of the terror act.

3. One or both parents died as direct result of the terror act.

4. One or both parents became handicapped as direct result of the terror act.

Assistance calculation:

1. The aggregate amount of distribution is determined based on donations collected.

2. Each recipient family is assigned a number of "shares" for which it is eligible.

3. Each family receives the amount equal to the total number of shares assigned to the children in that family.

4. The assistance amount for each share is equal to $500

Shares are distributed as follows:

Detailed explanation of assistance categories:

• Group 1 (Serious Injury): a serious injury is defined as an injury requiring hospitalization for 10 days or longer. Each seriously injured child is thus entitled to $500 of assistance.

• Group 2 (Parent Fatality): if a child's parent perished in the terrorist act, the child is entitled to 7 x $500 = $3500 of assistance.

• Group 2a (Complete Orphans): if a child was left orphaned by the terrorist act, s/he is entitled to 6 x $500 = $3,000 of assistance in addition to the entitlement under Group 2.
  
  Thus, for example, if the child only had one parent as of September 1, 2004, and that parent died in the terror act, the child is eligible for $3,500 (under Group 2) plus $3,000 (under Group 2a) for the total of $6,500.
  
  If both of the child's parents died in the terrorist act, s/he is eligible for $3,500 x 2 = $7,000 (under Group 2) plus $3,000 (under Group 2a), for the total of $10,000.

• Group 3 (Parent Handicapped): if a child's parent was left handicapped by the terrorist act, as determined by the Foundation's medical expert commission, the child is entitled to 7 x $500 = $3,500 of assistance.

• Group 4 (Child Handicapped): if a child was left handicapped by the terrorist act, as determined by the Foundation's medical expert commission, the child is entitled to 26 x $500 = $13,000 of assistance. The exact number of shares will be finalized when the exact number of handicapped children is determined, and the donation drive is finished. All donations made after January 1, 2005 are channeled to this group of recipients, so the final amount of assistance to handicapped children will only be determined at the end of the fundraising campaign.

1. Family of each child who was hospitalized for 10 days or more.

2. Family where one or both of the parents of the child died in the terror act.