Big Donors Show Up After Disasters, but Funding Risk-Reduction and Preparedness Is the True Key
Natural disasters have a way of pulling at people's heartstrings—and their pocketbooks. That phenomenon played out at the beginning of this year to massive effect, in response to the wildfires that ravaged Los Angeles and burned over 50,000 acres. The property and capital losses are expected to reach up to $131 billion, according to data from U.C.L.A. Anderson School of Management . While donations alone likely won't begin to reach that staggering estimate, the Los Angeles Times has reported that over $650 million has poured in. That sum builds on amounts given after other recent calamities, including the 2023 Maui fires and last year's hurricanes in the Southeast. According to the most recent numbers available from the Center for Disaster Philanthropy (CDP), 1,000 of the largest funders in the United States gave a record $547.5 million following such events (excluding epidemics) in 2022, a whopping 105.6 percent increase from the previous year.
Still, while big donors have shown up in the aftermath of these highly publicized occurrences, whether they'll begin to give as generously to nonprofits that aim to plan for and prevent such tragedies remains an open question. According to the CDP's 2024 report, just 5.5 percent of disaster funding went toward either preparedness or resilience, risk reduction, and mitigation in 2022. Meanwhile, 66.1 percent was directed toward response and relief. It's the former categories that may prove to be even more meaningful, though.
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Gregory R. Witkowski, an associate professor of public administration at Kean University, who's also affiliated with the National Center for Disaster Preparedness at Columbia University, says he hopes that recent experiences will make donors realize the importance of getting out ahead of such catastrophes. We are now averaging over $20 billion in emergencies every year in the U.S., he notes, and FEMA estimates that the savings from readiness can reach up to $7 for every dollar spent.
"What we are seeing is increasingly intense and [an] increasing frequency of major disasters," Witkowski says. "Investing in preparedness just makes sense, if people are looking to make a difference moving forward in their community."
The need is perhaps even more urgent as President Trump's administration cuts back on aid meant to help communities withstand storms, fires, and the like. With government support in retreat, philanthropy may be one of the most effective ways to take up the fight.
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