GoFundMe Aid for LA Wildfire Relief: Is It the Best Option for Donors and Victims?
As the Eaton Fire swept through Los Angeles, 45-year-old content director and producer Nick Carranza rushed to his old friend’s house to battle the 15-foot-tall blaze with no fire fighters in sight. member. Together they managed to put out the fire using water from a neighbor’s swimming pool.
Carranza, a former resident of Altadena, cannot stand idly by during the crisis. He and a few of his friends created a “One Love Altadena” GoFundMe Campaign Helping vulnerable Altadena residents displaced by fires.
“Altadena is a diverse community with people from all socioeconomic backgrounds,” Carranza said. “I knew someone was going to be in trouble.”
After reaching their initial goal of $10,000, they GoFundMe continues to raise fundsproceeds will be used to help Black and Latinx families launch their own fundraising efforts.
Since wildfires broke out in Southern California earlier this month, more than 600,000 donors have contributed to the GoFundMe campaign, and the platform has raised more than $100 million to help families, businesses and communities affected by the crisis, according to company representatives.
of the website California Wildfire Center Brings together a large collection of individual fundraising activities and general Wildfire Relief Fund send “Provides $1,000 in emergency relief to individuals who lost their homes, loved ones and property as a result of the Palisades, Eaton and Hurst fires. ”
If you are interested in initiating or Donate to the GoFundMe campaign To help the thousands of people affected by the ongoing Southern California wildfires, it’s important to understand where to start, how to verify beneficiaries, and the pitfalls you may encounter.
How does GoFundMe work?
GoFundMe is a crowdfunding platform that allows people to create a fundraising page for themselves or a loved one facing financial hardship, whether due to expensive medical bills, a costly accident, or an accident natural disaster.
The platform is easy to use. With a series of tips, you can quickly Start an event and fundraising goals for your cause. Once your fundraising campaign starts, you can add more information or change your fundraising goals. You can request a withdrawal of funds after the campaign has started, and transfers usually take two to five business days.
Anyone can become a donor and contribute as little as $5 to the fundraiser. Event organizers pay the transaction fee (currently 2.9%, plus 30 cents per transaction), but donors can choose to pay that fee as well.
Why do people use GoFundMe for disaster relief?
One of the main reasons people use GoFundMe Disaster Relief is that they can spread information easily through personal networks. You can share the link to your fundraiser via email, text message or social media.
For example, after I donated to several campaigns by acquaintances who lost their homes in wildfires, I shared the links on social media, which helped attract more donations.
GoFundMe also has an advantage over other official sources of aid because it is more immediately available. Individuals waiting for grants, loans or other forms of aid often turn to GoFundMe to get relief faster or to raise awareness for their cause.
How do you know if a GoFundMe page is legitimate or a scam?
GoFundMe has taken steps to detect potential scam and prevent abuse of the platform. According to its website, GoFundMe provides guarantee Provide full refunds to donors if there are signs of abuse or fraud.
A GoFundMe spokesperson told CNET in an email that fundraisers go through an enhanced verification review process that includes oversight by trust and safety experts and technology tools to help detect any abuse.
That said, fraud can and does occur. Donations are best made to event organizers and recipients you know personally or through family members or mutual friends. Look for inconsistencies and flag anything that looks suspicious—for example, if the story doesn’t add up, or the name on the fundraising page doesn’t match the recipient.
“Always do your research before donating,” said Tai Stewart, the organization’s founder. Support financial solutions. “There are vetting processes in place, but you should do your own due diligence.”
You can also perform a Google reverse image search to verify any source or location information. My friend tried this at a Los Angeles fire fundraiser after noticing something wasn’t right. The photo was taken in Ohio, not Altadena.
In Carranza’s case, he and his campaign organizers made sure donations were distributed responsibly by personally contacting families in need and learning about their situations. For example, they confirmed that an elderly couple who ran a foster home and day care center lost their home and source of income in the wildfires.
Will GoFundMe funding limit federal aid options?
Since wildfires broke out in Los Angeles, some experts have warned that crowdfunding donations received from GoFundMe could limit the amount of disaster relief. federal aid you receive.
FEMA public affairs officer Brandi Richard Thompson said the agency cannot duplicate assistance an individual receives from other sources, whether from insurance payouts or donations.
To be clear, those who receive outside donations are not automatically disqualified from receiving federal aid. But if someone starts a GoFundMe campaign to rebuild their home after it burned down, that could be viewed as getting funds for the same damage elsewhere.
“(The case) has to be reviewed to make sure they are not duplicating benefits they receive from the federal government,” Richard Thompson said.
However, if someone makes it clear that they are raising funds only for temporary needs (food, shelter, or clothing), this does not affect how much money they can receive from the federal government.
FEMA’s California wildfires page Provide information about programs, funding and resources available to residents affected by wildfires. this Application deadline The deadline for FEMA to provide rental assistance to displaced residents is March 10, 2025.
Do you need to pay taxes if you raise money on GoFundMe?
Personal gifts are generally not tax deductible, so you don’t have to worry too much about paying taxes on the fundraising funds you receive. “You can think of it like a friend giving you $10,” Stewart said. “You don’t report it as income on your taxes.”
However, depending on how your activity’s payment is processed, earnings from Venmo, Zelle, PayPal, or via credit card may be Class 1099-KStewart said.
If the payment exceeds $5,000, a 1099-K tax form will be sent to the person receiving the campaign funds, but that does not automatically mean it is taxable income. It’s best to consult a tax professional to learn the specifics and understand your tax responsibilities.
If you donate to GoFundMe, is it tax deductible?
You should do your research before donating to see if the crowdfunding page contains any tax information.
Some GoFundMe campaigns are posted by nonprofits, which are often disclosed on the campaign page, or you can search for tax-exempt nonprofits by: IRS Lookup Tool. If you donate to an organization registered as a 501(c)(3) nonprofit, you can receive Tax write-offs for your charitable donations.
Otherwise, if you donate to an individual or family, it will be considered a personal gift just like you would a donation to a friend or family member, Stewart said.
How is GoFundMe helping Los Angeles wildfire victims?
Carranza is just one of many using crowdfunding platforms to help people displaced by the fires. By reaching out to Altadena residents, he and other organizers learned about others in need. Many of the displaced lack technical support or English skills and don’t have their own GoFundMe campaigns.
For example, Carranza met a woman who lived in a borrowed car and had three cats. The fire destroyed her home, workplace and car.
“Sometimes people need help but are not always ready to ask for it,” Carranza said. “Just show up to the best of your ability.”
