Crisis Management: FAQs

General Program Questions

Q: What is Michaels CARES?
A: Michaels CARES is a company and associate sponsored charity designed to help associates in time of great need through immediate cash grants. Q: Why did we organize Michaels CARES?
A: Hurricane Katrina showed us how caring and compassionate our associates are when we raised over $55,000 in a few weeks for charity. Many associates asked how they could directly help our own associates who were impacted by that tragedy. Michaels CARES will allow us to help our associates who truly need a helping hand when they need it.

Q: In what situations will Michaels CARES help an associate?
A: We want to help associates who are facing a catastrophic or life changing event such as the destruction of their primary home, death of dependent family member, or life-threatening illness or injury. Michaels CARES criteria have recently been expanded to assist at times when a local community authority enforces an evacuation of primary residence due to severe weather conditions, fire, flood, or other hazardous condition.

A: Immediate dependent family members living in the same household including spouse, child or step-child, and in some qualifying instances, parent(s) as well.

Q: What would be a qualifying instance in receiving a grant when a parent is involved?
A: Michaels CARES considers applications in situations where an associate is 100% financially responsible for a parent. There is no requirement that the parent live with the associate - just that the associate can show the financial dependency of the parent.

Q: What situations are not eligible for Michaels CARES assistance.
A: Because Michaels CARES is set up to help those in greatest need resulting from unforeseen disaster primarily out of their control, there are specific guidelines that are followed to ensure that we are well prepared when disaster strikes. To respond to this question more specifically, let’s look at some examples within the major categories that would not be addressed by Michaels CARES:

• Loss of primary residence: The home is being foreclosed (or eviction notice has been issued) due to non-payment or delinquent bills based loss of job or mismanagement of income or personal funds.
• Significant Damage to primary residence: The residence is damaged due to neglected maintenance items, such as a furnace fire or flooding due to faulty appliance.
• Forced Evacuation: The evacuation is required due to violations of health and safety codes unique to the specific residence that could have been avoided or prevented through regular maintenance. Law enforcement forces evacuation due to illicit or illegal activities present in the residence.
• Death of Associate or Dependent: The deceased is an adult relative of an adult associate, and the associate is not financially responsible for the deceased.
• Life-threatening Illness or Injury: Common illnesses and injuries that are not life-threatening such as broken bones, bronchitis, or back pain are examples of situations not considered by Michaels CARES. A diagnosis of cancer does not automatically qualify as a life-threatening illness.

Q: I might lose my house because I am unable to pay the mortgage. Can I apply under 'loss of primary residence’?
A: The 'loss of primary residence’ category primarily applies if you lose your home through a natural disaster such as hurricane, earthquake, or fire. If you are unable to pay primary residential mortgage or rent due to one of the major criteria (death of dependent family member, or life threatening illness or injury), you may be eligible for a grant.

Q: How much will Michaels CARES provide to the associate?
A: Grants will be awarded based on the situation. Our general guidelines are to help associates through the immediate period of time before other forms of assistance may become available. Our goal is to ensure our associates have shelter, food and clothing during these challenging times.

Q: Who approves the requests?
A: A group of 7 associates representing all divisions (Stores, Distribution, Artistree & Corporate) and diverse levels within the company will review all requests. Majority rules.

Q: How is the company supporting Michaels CARES?
A: The Company has donated over $150,000 to Michaels CARES as seed money. This is money earned through our corporate sample sales. All sample sale revenue goes to Michaels CARES. The company continues to supplement the fund with additional donations and special events. Additionally, several members of our executive team have already made generous personal contributions.

Q: What can I do to help support Michaels CARES?
A: The majority of support comes directly from our associates through payroll deduction. You can ask your manager for a form or download it from your intranet site. Set it up to deduct as much as you want. It’s a good feeling because you know your money goes directly to someone in need at your company. As we continue to grow the 'war chest’ we’ll be providing fun and creative ways for you to donate funds through more fundraising opportunities. Please take advantage of them! You may also elect to donate a lump sum of any amount to Michaels CARES. All donors submitting $250 or more will automatically be issued a receipt that can be used for tax purposes.

Q: What if I know someone who needs help?
A: Feel free to remind your fellow associates about this program. You can always print the information from the website and provide a copy to them.

Q: What is the Million Dollar Bouquet?
A: The Million Dollar Bouquet is a measurement metaphor to show how much you care! For every $20,000 we collect, we’ll put another stem in our 'Million Dollar Bouquet’ so you can see how your dollars help build a beautiful floral bouquet. At corporate headquarters, we have several Million Dollar Bouquets so our associates here can see our progress!

Questions About Requesting Help

Q: If I share personal information, who will know it?
A: We will only ask for information that we need to approve a request. Once we receive a request, we will remove your name from all approval documents. Our guiding principle is to keep your information as confidential as possible while providing you the assistance you need.

Q: What serious illness or injury situation would trigger a request for a grant?
A: The situation must be serious enough to cause a severe financial impact for the associate. That would mean the associate might not be able to pay rent or mortgage, or provide food for household family members. A rule of thumb would be that the illness or injury may be life-threatening.

Q: Why do I need a sponsor?
A: A sponsor is required as part of the process to ensure you have a partner through this trying time or, in some cases, to actually complete the process for you if you are not able. The sponsor becomes the communication liaison between you and Michaels CARES.

Q: Who can be a sponsor?
A: Your sponsor typically will be your Store Manager or above (Stores), Coach or above (Distribution Centers), Supervisor or above (Corporate). However, it could also be another member of management or a human resources representative. A sponsor must be designated for an applicant to be considered eligible. If you are considering being a sponsor for an associate, please ensure that you are fully aware of the responsibilities associated with it. Call Michaels CARES if you have questions or concerns. The role of the sponsor is key to the successful functioning of this program.

Q: Who is eligible for a grant?
A: All regular associates of Michaels Stores, Inc. who have been employed for at least 90 days are eligible. This does not include seasonal, temporary, or contract workers.

Q: Is there a limit to how many times or how much money an associate can receive?
A: We have set guidelines for giving for the types of situations our associates may face. We have not set a pre-determined limit on the number of grants or a total amount granted to any one associate. We will evaluate all requests on a case-by-case basis and make the right decision.

Questions About Donations & Taxes

Q: How much can I donate?
A: As much as you want.

Q: Can I make a one-time donation?
A: Yes, simply mail your check to Michaels CARES at 8000 Bent Branch, Irving TX 75063. Include your name and a return address so we can send you a receipt for your taxes for amounts more than $250. At this time, we can only accept checks – no cash or credit card donations.

Q: Can I choose to direct my donations to specific associates?
A: No. All donations go to a general fund so we can help all associates who may be in need.

Q: Can I donate in a method other than cash such as items from home or vacation time?
A: Not at this time.

Q: Is Michaels CARES a 501(c)(3) charity?
A: Yes! Michaels CARES has been approved by the IRS as having a 501(c)(3) charity status in the United States providing the program with a tax-free status.

Q: If I give to Michaels CARES, will my donation be tax deductible?
A: For U.S. associates, your donations will be deductible as allowed by law. Michaels CARES is a registered 501(c)(3) charity. Canadian tax law is different and so Canadian associates’ contributions are not be tax-deductible.

Q: Are Corporate Sample Sale purchases now tax-deductible?
A: No. Sample Sales are conducted by Michaels Stores, Inc, not directly by Michaels CARES. The money that Michaels in Motion (our internal charitable works organization) earns from a Sample Sale or other fundraiser is then donated to Michaels CARES, but until it is, the money belongs to Michaels Stores, Inc.

Q: Why can’t Canadian associates take a tax deduction?
A: Canadian tax law does not permit tax deductions for contributions to private charities. Because Michaels CARES limits its grants to Michaels associates, we do not qualify in Canada for that distinction. We decided that we would rather dedicate our associates’ donations to our own people. We think our Canadian associates would agree with this plan!

Q: Will I have to pay taxes on any grants Michaels CARES provides?
A: U.S. associates will receive their grants tax-free and would not need to claim the amount as income. Canadian associates must claim the grant as income. To reduce any tax burdens for our Canadian associates, we will gross up the grant amount by 30%.

Q: Will I get a receipt for my taxes?
A: For U.S. associates, your annual W-2 tax form includes a line item for all payroll deductions. For one-time donations under $250, your cancelled check is your receipt. Donations over $250 will include a receipt from Michaels CARES.

Q: Is this Payroll Deduction for Michaels CARES considered a pre-tax deduction?
A: No. It is not a pre-tax deduction. However, you may file the total amount as a charitable deduction at tax time.

Administration and Process Questions

Q: How long will it take for an associate to receive a grant?
A: Our goal is to process most requests within 2 - 5 business days. There may be situations where the need for additional information or discussion extends that timeline, but our guiding principle is a fast turnaround to our associates in need.

Q: What is the first step in a new request?
A: Download and complete the application form from the Michaels CARES website and seek a sponsor. Sponsorship is required.

Q: How are the grants distributed?
A: For associates in the U.S., we will provide a 'Cash Card' which operates like a debit card and is accepted in the majority of ATMs all over the country. Canadian associates will receive a cheque. Either way, we will send the grant to the associate in overnight express mail whenever possible.

Q: Will I have to provide documentation of my situation?
A: Yes. In certain circumstances, you may need to provide further information about the details of your situation and its financial impact. The application form lists the basic requirements for each situation.

Q: Are there any rules about how I use the grant money?
A: We hope recipients will use the grants for immediate urgent needs such as food, shelter and clothing. We trust our associates to do the right thing.

Q: What if my application is denied?
A: We will contact your sponsor to explain our reason for denying your request, or ask for additional information or documentation that might help us approve it. Your sponsor will then personally discuss the situation with you and request clarification if appropriate.

Q: I am a store manager processing Payroll Deduction Forms to Michaels CARES. What do I do with the forms after they have been filled out?
A: Simply fax the form to 972-409-5895. Return the original form to the associates for their records. No need to copy or file the payroll deduction authorization form after it’s been faxed.

Q: How long does it take for the payroll deduction to appear on my paystub?
A: Please allow up to two pay periods before the deduction appears on the associate check. If it does not appear within this timeframe, call or email Michaels CARES.

Q: On the Payroll Deduction Authorization form, which employee ID number goes in the requested space?
A: Please use the ORACLE ID number, or simply ensure that the first four digits of the Social Security Number appear in the appropriate space on the form.

Q: My question was not answered here. Who can I contact?
A: If you have a question that is not answered here, please e-mail us at: MichaelsCARES@michaels.com, or call 972-409-5858.