Aid distributed to nonprofits reaches affected communities
As promised, the organizers of FireAid benefit concerts released two audits detailing how grants were distributed to local Southern California nonprofits and their effectiveness, reaching those impacted by January’s disastrous wildfires.
The nonprofit 501(c)(3), which was able to accept tax-deductible donations totaling close to $100 million, came under scrutiny earlier this year first by the Pacific Palisades Community Council (PPCC) that questioned if funds raised actually were received by those who lost homes and businesses in the disaster. The FireAid organizers had always claimed the charity, founded by the NBA’s LA Clippers and owner Steve Ballmer, would organize star-studded concerts at the Forum and Intuit Dome, but that monies raised would be overseen by the Annenberg Foundation with its expertise in distribution to area nonprofits, rather than giving money directly to impacted fire survivors. The PPCC’s concerns reached all the way to the White House, with President Donald Trump even echoing calls for clarity and going as far as alleging some of the money raised for victims never reached them.
Now that the audits have been released, the PPCC says it’s satisfied with the reports that detailed where exactly the funds were distributed. After reviewing two separate audits, one long-planned status report by FireAid, and another independent review by the law firm Latham & Watkins, PPCC issued a statement saying, “Like many in the community, we were seeking clarity at a time when communication was scattered, and emotions were running high. Since that time, we have received an official statement from FireAid, as well as dozens of testimonies and direct information from organizations on the ground. These updates have painted a much fuller and clearer picture of how FireAid resources are being put to work — quickly, carefully, and with real local impact.
“After calling for scrutiny of fund disbursements and accountability, we realize that misinformation online has increased, particularly around the use of FireAid funds. It’s understandable, as disaster leaves people in a state of loss, anger, and uncertainty. As a community organization, PPCC believes it has a responsibility to counter false or incomplete narratives with emerging facts. That includes recognizing when the people who could help actually did.”
One local nonprofit, The Boys & Girls Club of Malibu, earlier told The Malibu Times it received $225,000 from FireAid. Another nonprofit, the Pasadena Senior Center, also confirmed it received similar funds that were used to directly help hundreds of its senior citizen members in need.
More than 75,000 donors contributed to FireAid, including Ballmer and his wife Connie, who gave $14 million in matching funds. $44.5 million came in from corporate sponsors, nearly $10 million from philanthropic organizations, and $14 million from ticket sales and another $14 million from viewers who called in pledges during the broadcasts of the concerts.
120 area nonprofits ranging from wildfire recovery efforts to victim relief, providing food, educational centers, arts, and more received FireAid grants in two rounds of funding. A third round of grants is set to be distributed later this year after applications are reviewed.
The independent Latham & Watkins report concluded, ”Based on the investigation conducted to date, we have not identified evidence of any misrepresentations in the solicitation of charitable funds, improper selection of grantees, improper distribution of funds, improper use or misappropriation of funds, fraudulent intent, or deviation from FireAid’s stated mission.
“Rather, our findings indicate that FireAid understood its purpose as a charity concert to raise money for fire victims, communicating consistently how charitable donations would be used across its website, public statements, and sponsorship materials.
“FireAid put in place a comprehensive, multi-level grantmaking and evaluation process to ensure the effective distribution of funds. The overarching goal was to swiftly allocate funds to organizations that were capable of providing services to the community as fast as possible. Consistent with the ideology of disaster philanthropy, FireAid’s approach aimed to balance the need for formal processes and controls with the urgency of disaster response.”
Both audits were shared with government officials, including the Department of Justice.