GoFundMe Is Helping LA Wildfire Victims Rebuild, but Is It Enough?
As the Eaton Wildfire tore through Los Angeles, content executive and producer Nick Carranza, 45, rushed to the home of his longtime friend, who was battling the 15-foot-tall flames. Struggle, no firefighters in sight. Together they used water from a neighbor’s swimming pool to put out the blaze.
Carranza, a former resident of Altadena, has been unable to sit on the sidelines during the crisis. He and some of his friends created one”A love altadena” gofundme campaign Assisting vulnerable displaced residents of Altadena.
“Altadena is a diverse community with people from all socioeconomic backgrounds,” Carranza said. “I know there are going to be people who are going to be in trouble.”
After reaching their initial goal of $10,000, their GoFundMe continues to collect fundsproceeds will help Black and Latino families with their own fundraising efforts.
More than 600,000 donors have contributed to the GoFundMe campaign since the Southern California wildfires broke out earlier this month. As of January 24, more than $200 million has been raised on the platform to assist families, businesses and communities affected by the crisis, according to company representatives.
website California Wildfire Hub Compile numerous individual fundraising activities and Wildfire Relief Fund send “Emergency relief grants for those who lost homes, loved ones and property due to 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 know where to start, how to verify beneficiaries, and what pitfalls you may encounter.
How does GoFundMe work?
GoFundMe is a crowdfunding platform where people create fundraising pages for themselves or a loved one facing financial hardship natural disaster.
The platform is easy to use. With a series of tips, you can quickly Carry out activities and fundraising goals for your cause. Once your fundraising campaign is achieved, you can add more information or change your fundraising goals. You can request funds to be withdrawn after the campaign has begun, and the transfer usually takes two to five business days.
To cover payment processing, donations are minus standard fees, currently 2.9% plus 30 cents per transaction. Anyone can become a donor by donating $5 to the fundraiser.
Why do people use GoFundMe for disaster relief?
The main reason people use Gofundme Disaster Relief is the ease with which they can spread words through their personal networks. You can share a link to your fundraiser via email, text, or social media.
For example, after I donated to several acquaintance campaigns, after I lost my home in a wildfire, I shared the link on social media, which helped bring in more donations.
GoFundMe also has an advantage over other official sources of aid because it is more available. Individuals waiting for grants, loans, or other forms of assistance often turn to Gofundme for faster relief or to raise awareness for a cause.
How do you know if a GoFundMe page is legitimate or a scam?
GoFundMe has measures to detect potential scam and prevent abuse of the platform. according to its website GoFundMe offers guarantee Provide donors with full refunds if there are signs of abuse or fraud.
A GoFundME spokesperson told CNET in an email that fundraisers undergo an enhanced verification review process that includes oversight by trust and safety experts as well as technology tools to facilitate any abuse.
That said, scams can and do happen. It’s best to donate to campaign organizers and recipients you know personally or through family or mutual friends. Look for inconsistencies and flag anything that seems variable—for example, if a story doesn’t add up, or if the name on the fundraising page doesn’t match the recipient.
“Always do your research before donating,” says Tai Stewart Help with financial solutions. “There is a review process, but you should do your due diligence.”
You can also do a Google reverse image search to verify any source or location information. My friend tried it out for a specific LA FIRES fundraiser after noticing something. The location of this photo is in Ohio, not Altadena.
For his part, Carranza and his campaign organizers made sure donations were distributed faithfully 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 daycare lost their home and source of income to the wildfires.
Are GoFundMe funds limiting federal aid options?
Since wildfires broke out in Los Angeles, some experts are warning that crowdfunding donations received from Gofundme could limit federal aid you receive.
FEMA Public Affairs Officer Brandi Richard Thompson said the agency cannot replicate the help an individual would receive from another source, whether from insurance payouts or donations.
To be clear, those who receive outside donations are not automatically disqualified from federal aid. However, if someone has a GoFundMe campaign to rebuild because their home burned down, that could be interpreted as funding for the same loss elsewhere.
“(The cases) have to be reviewed to make sure they don’t duplicate the benefits they received from the federal government,” said Richard Thompson.
However, if someone clearly states that they are raising funds for temporary needs only (food, shelter, or clothing), that should not affect how much they receive from the federal government.
FEMA California Wildfires Page Provide information about programs, funding and resources available to residents affected by wildfires. this Application deadline FEMA rental assistance for displaced residents is March 10, 2025.
If you raise money on GoFundMe, do you have to pay taxes on it?
Personal gifts are generally not tax deductible, so you don’t have to worry about paying taxes on the fundraising funds you receive. “You can imagine a friend giving you $10,” Stewart said. “You wouldn’t report it as income on your taxes.”
However, depending on how your campaign payments are processed, earnings from Venmo, Zelle, PayPal, or via credit card may fall under 1099-K CategoryStewart said.
If the payment exceeds $5,000, a 1099-K tax form will be sent to the person receiving the campaign funds, but this does not mean their taxable income. It’s best to consult a tax professional to go over the details 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, often disclosed on the campaign page, or you can search for non-profits with the With the With tag-Sensement IRS lookup tool. If you are applying to an organization that is registered as a 501(c)(3) nonprofit, you can get a Tax your charitable donations.
Otherwise, if you make a donation to an individual or family, it’s considered a personal gift the same way you would give the money to a friend or family member, Stewart said.
How does GoFundMe help La Wildfire victims?
Carranza is just one of many individuals using the crowdfunding platform to help those displaced by the fires. By extending a hand to Altadena residents, he and his organizers got to know others in need. Many of the displaced people without technology access or the ability to speak English don’t have their own GoFundMe campaign.
For example, Carranza met a woman living in a borrowed car with 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.”
